"If exports continue to move in the negative territory, it will sooner or later put pressure on CAD (Current Account Deficit) and may derail the rebuilding of economy. Contracting for the sixth month in a row, India's exports plunged 20.19 percent in May to USD 22.34 billion, mainly due to global slowdown and drop in crude prices, which have impacted overseas shipments of petroleum products,” he added.

Ralhan wanted the government to immediately initiate dialogue with the industry to understand the challenges and revisit its strategy to support the exports sector. "The world economy is in a challenging phase and is entering a 'dangerous stage' which will have ominous implications for India," he cited.

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