The latest report of United Nations Conference on Trade and Development (UNCTAD) paints a grim picture on the India economy as it predicts that nearly 1.3 million people are expected to lose jobs in the export units during the current financial year due to ongoing current economic crises in the developed countries.

However, the report released by United Nations Conference on Trade and Development also added that country’s exports are likely to pick up and grow 8.3 per cent in FY11, and this will help generate 5.22 million jobs.

The net job loss in the export sector is estimated to be 7.48 lakh.

“In 2010-11, about 5.22 million jobs could be created. "No job losses are expected as all sectors are expected to experience positive export growth," added the report.

The report said that exports of petroleum products, minerals, gems and jewellery and textiles are likely to see the steepest fall.

“Given such heavy reliance on advanced countries' markets, the impact of slowdown in these countries is being felt in India's trade sector," the report said.

It should be noted here that in 2008-09, nearly 1.16 million people lost their jobs due to negative export growth in sectors such as textiles.

The exports in the country have been falling since October last year.

Though the government announced a series of relief measures including interest subsidies on bank loans and increased duty refund rates to ease the pain of exporters hit hard by the global slump, but exporters still want more help from the government.

Newly appointed union trade minister Anand Sharma has made it clear that he would ask the finance ministry for more relief measures for exporters.