Author Name: Anurag Bhullar

Indian economy is feeling the pinch of the worsening global financial crisis as the export volumes for the month of October took a dip of around 12 percent. Overseas sales of India dropped to $12.82 billion in this month, from the corresponding volumes of $14.59 billion of last year.

It is the first time in nearly three years that the Indian Overseas sales have plunged. The decline in exports was last seen in November 2005 when they dropped 11.4 percent. Slow domestic output levels, high borrowing costs and tight credit conditions had put a significant impact on the exports and added to the misery of exporters. A drop in the growth level of imports is also seen in October as it fell to 10.6 percent from 43.3 percent a month before due to fall in the oil prices in the International markets.

P. Chidambaram, who will now man the Home Affairs, said that the matter was under consideration and soon assistance will be provided for top exporting sectors including, vehicles, jewelry and textiles.