Exports head towards contraction as orders from US, Europe vanish

With global oil prices dipping to record lows, petro exports to bring less revenue

After sudden growth in February, exports are fast heading towards a lengthy period of contraction as buyers cancel major shipments in foreign-exchange (forex) earning sectors, fear exporters.

“We expect contraction in March. With major economies continuing to see sharp rise in cases, the cumulative fall in demand would spill over into April, causing a bigger contraction,” Ajay Sahai, director general of the Federation of Indian Export Organisations, said.

A string of order cancellations by major clients in the US and Europe — two major centres of the coronavirus outbreak — is expected to massively hit sectors like engineering goods and