The economicRecession that kicked off from US banks and financial institutions submerged the world into economic despair for a prolonged duration. The meltdown left a wide variety of industries starving for finance and restricting their daily operations on a large scale. Agricultural produce and industrial production literally came to a halt and developing economies of small world countries were doomed in economic depression. Every importer and exporter in India felt the pinch of depression as trade died up and there was no local demand for their high quality produce.
When the depression subsided most developed economies changed their stand and made their countries more protected and insulated from foreign country reliance. Exports and imports were curtailed severed leaving a very small margin for international traders to conduct business. US cut down visa applications for international employees with a view to boost domestic employment and production. The effects of these economic measures were seen significantly in India where the IT and IT enable services employ a vast majority of people.
To make things worse for every small scale importer and exporter in India the government went to on to cut down export incentives and tax benefits. Newly established international traders were counting on these incentives to give them a support when foreign demand dried up. With fixed costs showing no sign of reduction and bank rates increasing on a daily basis a good number of international traders had to throw in the towel and quit businesses.