Indian exporters may announce large scale retrenchment drive in days to come to pressurize government for more financial relief to exporters. Director-general of the Federation of Indian Export Organizations, Ajay Sahai said, "The global economic demand is going down - that is the prime concern. The order book situation is pretty bad. From January onwards, we will have a lot of closures of units. "

The Federation urged PM Dr. Manmohan Singh to cut taxes and protect the industry from the global recession. PM's top advisor, Montek Singh Ahluwalia recently ruled out any plans to provide more government assistance besides two stimulus packages.

Government has to face general election in May this year, at a times when economic slowdown may become more severe and stock market is facing record declines. As many as 10 Million Jobs may be cut to make government re-think over taxes and incentives for exporters.

Shubhada Rao, an economist with Yes Bank Ltd. in Mumbai said, "While exports have significantly turned adverse, the exporters' group is coercing the government to address their demands favorably in the current environment. The number is probably overstated."

India's commerce ministry forecasted 500,000 job losses in November. On the current scenario, official spokesman at the commerce ministry, "Job losses are going to be enormous due to the global slowdown. Right now, it's difficult to say what would be the extent of job losses."