'Engineering exports target of $63 billion in FY'14 unlikely to be met'

NEW DELHI: India is unlikely to achieve the exports target of $ 63 billion during the current fiscal for engineering sector due to the global demand slowdown in the US and European markets.

During April-May period, engineering exports fell to $ 9.35 billion from $ 9.91 in the same period last year, EEPC India ( Engineering Export Promotion Council) said in a statement.

"Continuous economic turmoil in the European economies and no pick-up in North America may cast shadow over lndia's annual target of achieving $ 63.45 billion engineering exports in 2013-14," it said in a statement.

The council asked the government to take urgent steps to boost the sector's export as it is the top most contributor in the country's overall exports.

"The urgent steps are imperative in the wake of over eight per cent drop in engineering exports in April and 2.55 per cent decline in May against the annual target of achieving about 12 per cent growth in the current fiscal," EEPC Chairman Aman Chadha said.

It also said that India's exports to Africa have also registered a decline of 11.6 per cent in April-May.

Senior officials of the Commerce Ministry will hold brainstorming session with the diplomats of the African missions in India on July 16 to push engineering exports to that region, it added.

In 2012-13, engineering exports stood at $ 56.76 billion.

In 2004-05, the EU accounted for nearly 24 per cent of total engineering exports. It fell to 19 per cent in the last fiscal. The US accounts for around 11-13 per cent of total engineering exports.