Talks of business revival can be slightly premature for exporters from Punjab. SC Ralhan, regional chairman of Engineering Export Promotion Council, points out that there has been a 45% dip in exports in the third quarter of this year, compared to last year. Major industries that have seen a decline include hand tools, diesel engines, sewing machines and cycle parts manufacturing.
Exporters to the US and the European Union have suffered particularly, facing a 60-65% fall in business. ?Exporters who were getting good business from these markets did not diversify to other destinations. Their business has taken a beating due to the crisis and consequently the declining demand in these markets,? Ralhan added.
Suvir Mishra, additional commissioner customs, Ludhiana, says, ?All the sectors have been affected and signs of slowdown are everywhere. The manufacturing sector seems to have been the worst hit. The saving grace has been the fastener industry, in which exports continue to be good.?
Avinash Gupta, managing director of RN Gupta and Company Ltd, which deals in steel forging and general engineering components, said his company faced a 65% decline in exports, compared to last year. ?Our major exports were to US and Europe and there is not much good news from that country. It?s only the domestic market which is seeing a revival. Punjab faces an additional problem of power shortage and labour issues, which has worsened the scenario,? he said.
Major exports from Punjab include readymade garments and hosiery, cycle and cycle parts, food products, engineering goods, sports goods, yarn and textiles, leather goods, hand tools, machine tools, auto spares, diesel engines, sewing machines, electrical accessories, medicinal drugs, handicrafts and carpets.
Officials of the customs freight stations in the state believe exports this year are unlikely to reach last year?s levels. From April to September 2009, the number of containers sent from the four stations in Punjab stood at 13,283. Analysis of data available with CFS reveals that the number of containers from April to September this year is only 27.5% of last year.