Confirming the ad hoc estimates of the government that exports had taken a big hit and had actually fallen in October — a first in about five years — the commerce ministry released the official trade figures today showing that exports fell 12.1 per cent in October compared to October last year. Total exports for October were valued at $12.8 billion as against about $14.6 billion in the same month last year. Evidently, the overall export growth so far this year has also taken a serious hit with the growth rate slipping from a robust 31 per cent for the April-September period to a meagre 23.7 per cent for April-October.

The director general of foreign trade RS Gujral had last month indicated to the media that exports had taken a bad hit in October and might have fallen by as much as 15 per cent. Department of Commerce has, since, been in discussion to formulate a stimulus package to provide immediate relief to the export sector. Commerce secretary GK Pillai, too, had said late last month that the crisis in the export sector could take a heavy toll on the jobs in these industries. Quoting textiles ministry estimates, he had said that the textiles sector could lose as many as 5 lakh jobs over the next five months. With commerce ministry's proposal ready, now the matter will be taken up by a committee of secretaries chaired by cabinet secretary KM Chandrasekhar, which will then forward its proposal to the apex committee of ministers headed by the Prime Minister for its approval.

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