The number ofoverseas trade fairs organised by the Indian Trade Promotion Organisation(ITPO), a state-run agency functioning within the commerce ministry, has showna sharp decline of 40 per cent in the last fiscal, compared with the previousyear. This is mainly because key markets where these trade promotion activitiesare held are in the grip of a severe economic crisis.

Small and medium enterprises (SMEs),which depend on these India-focused fairs to secure orders from overseasclients, are likely to get impacted as they do not have the resources toestablish offices abroad.

Data available with ITPO revealed that the trade promotion agency organisedonly 37 fairs abroad in 2008-09, against 61 in 2007-08.

“The decreasing number of fairs in the conventional exhibition centres of theWest is a result of the slowdown in the western economies. But this is beingoffset by an increased number of opportunities in the fast-growing East Asiaand West Asia nations,” said Safdar H Khan, senior general manager, ITPO.

The 35 fairs proposed for the current fiscal indicate that the number mayfurther decline marginally by 5 per cent. The fairs in the US and EuropeanUnion alone showed a staggering dip of 50 per cent and 65 per cent,respectively, in 2008-09.

Developed markets like the US, the EU and Japan account for more than 40 percent of India’s exports. These economies, which together account for nearlyhalf of the world output, are contracting because of the ongoing economiccrisis, the worst since World War II.

“Businesses in the West are shying from participating in exhibitions to savetheir bottomlines in this phase of the downturn,” said Biswajeet Dhar, a tradeexpert with the Indian Institute of Foreign Trade.

Trade fairs and exhibitions give an alternative low-cost platform to exportersto showcase their products for an international market. “In the backdrop of aweakening demand in the developed economies, we are focusing on thefast-growing economies of South-East Asia, East Asia, Latin America and West Asia,”said Ajay Sahay, director-general of Federation of Indian Export Organisations(FIEO), the apex body for export promotion.

The domestic fairs by ITPO too clocked a 28 per cent decline to 20, comparedwith 28 fairs held in 2007-08.