Decline in exports: Engineering exporters to focus on Africa

NEW DELHI: Concerned over decline in exports, country's engineering exporters are focusing on exploring business opportunities in African countries to beat the slowdown in the western and European markets.

In the second interactive round table conference with over 30 diplomats of key African countries, Engineering Exports Promotion Council India ( EEPC) today discussed different challenges they are facing in doing business in Africa.

"Exporters are facing challenges like access to market, knowledge about the African markets and logistical and transport related issues," EEPC Chairman Aman Chadha said.

He said that although trade between India and Africa was increasing but more needs to done in order to boost engineering exports to that region.

Speaking at the occasion, Additional Secretary in the Commerce Ministry D S Dhesi said that huge potential exists between the regions to enhance trade and investment.

"We are witnessing constant growth in trade. Last two years were not good for global trade but bucking the global trend, trade between India and Africa is growing. Engineering exporters should try to tap the African region to enhance shipments," Dhesi said.

The bilateral trade has increased to USD 65 billion in 2012 from USD 34 billion in 2008. Both the sides have targeted to take it to USD 100 billion by 2015.

Engineering exports have declined by 9.25 per cent in June despite rupee depreciation by about same ratio in the last two months.

EEPC has sought help of the Commerce and External Affairs Ministries to tap the African market.

India's engineering exports fell by 9.26 per cent to USD 4.22 billion in June. In May, it was down by 3.15 per cent.

In order to attract foreign buyers, EEPC is organising a India Engineering Sourcing Show in Mumbai in January next year where 400 Indian exhibitors are expected to participate.

Also, 100 international exhibitors and 1,000 foreign delegates are likely to particiapte in the show.