Exporters have cautioned the government over higher defaults of bank loans because of cancellations and the reduction of orders caused by the coronavirus outbreak.

“Near lock down and quarantine in many advanced economies has given a jolt to the demand and added to the rising uncertainties with looming recessions in a large number of economies with consequent fallouts”, Sharad Kumar Saraf, president of Fieo, said.

The exporters’ body said the sector has started feeling the pinch as international buyers are asking to hold back shipments. They expect a significant number of such requests in the coming days which could lead to cancellation of orders.

Medium and small units in employment-intensive sectors such as handicrafts, apparels and gems and jewellery are likely to be worst affected.

S&P adds to gloom

New Delhi: S&P Global Ratings on Wednesday lowered India’s growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic.

The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.

Asia-Pacific economic growth in 2020 will more than halve to less than 3 per cent as the “global economy enters a recession”, S&P said in a statement. PTI