A survey by an industry lobby has found that more than half the exporting companies expect volumes to decline in the next six months.

About 56 per cent of the surveyed companies, whose turnover ranged between Rs 1 crore (Rs 10 million) and Rs 5,000 crore (Rs 50 billion), said their orders had been cancelled.

In addition, 30 per cent respondents said their buyers had defaulted on payments.

The survey comes against the backdrop of dip in exports in October and November as well as a possible contraction in December.

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A total of 367 companies took part in the survey, done by the Federation of Indian Chambers of Commerce and Industry.

"Indian exporters are on the run due to aggressive Chinese pricing in the international market.

Indian exporters are facing 'Meet the China Price' demand from across the market and the fear is that this will intensify in the months ahead," said a Ficci release.

Respondents told Ficci they had been forced to cut prices by 10-15 per cent to keep competition at bay. Around 62 per cent respondents expect prices of export goods to come down further in the coming months.

In the two fiscal stimulus packages announced by the government so far, the RBI has cut key policy rates and the government has offered interest subsidy on export credit. But exporters said banks were still conservative on export finance.

Other measures announced by the government included restoring the level of duty neutralisation schemes like the duty entitlement passbook scheme to pre-November 2008 levels and an additional credit line worth Rs 5,000 crore (Rs 50 billion) to Exim Bank.

The survey found that the slowdown in exports would lead to job losses. As much as 60 per cent companies said they were going slow on hiring and employment levels could reduce by 10-15 per cent in the next six months.

Ficci has demanded a series of measures to help exporters. These include prompt disbursement of funds under duty neutralisation schemes as well as widening the ambit of export promotion schemes like focus market and focus product schemes.

The industry lobby body also called for additional interest subsidy for export credit, income tax exemption and reduction in fuel prices.

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