Global slowdown, spreading fast in India, has adversely hit country's export sector in January with reported decline of 22% in merchandise exports. The data provided for January gives indication of grimmer situation ahead with a large number of job losses and stagnation in economy.

The country witnessed overall 1.1 per cent decline in export in December. Experts believe that situation may become worse in coming months for exporters due to non-availability of new contracts in the international market.

G. K. Pillai, Commerce Secretary, while commenting on decline in exports, said, "It is a little unexpected. There were not many orders in the last quarter."

However, Mr. Pillai hoped that exports may rise by 5% to US$167 billion at the end of current financial year.

Mr. Pillai also expects 15 lakh to lose their jobs in the export sector by the end of March leading to many social problems due to large scale unemployment.

Meanwhile, the government has announced to extend benefit cover provided to the beneficiaries of Employees State Insurance Corporation (ESIC) from six months to one year with immediate effect. In addition to this, more funds will be arranged for unemployment allowance under the Rajiv Gandhi Shramik Kalyan Yojana (RJSKY).