Engineering exports slips by 7% in Q1 of FY14

KOLKATA: Engineering exports have dropped by as much as over 7 % in the April-June quarter in the current fiscal. This has prompted EEPC (formerly Engineering Export Promotion Council) to search new markets for exports.

'Searching new markets is imperative for the Indian engineering exports,' said Mr Aman Chadha , Chairman of the EEPC India The slowdown in the US and European Union markets have affected the exports.

Mr Chadha is disappointed over Reserve Bank of India's decision of not undertaking rate cuts in its monetary policy. 'We need to make Indian exports competitive in a rather tough global markets where we face competition from aggressive exports from China and other emerging economies. As per recommendations of the Padmanabhan Committee , there needs to a special dispensation for the export finance and special lending for exports. But the policy gives no concessions to the exporters

Incidentally, both the government and the exporters are making renewed efforts to diversify and explore new markets and the Pacific Alliance which has a free trade agreement among themselves, holds great promise within Latin America. India's share in the total import of engineering products of the Pacific Alliance is miniscule whereas there is a great scope for increasing it. Of their total imports of engineering goods, India's share was not encouraging.