Punjab's new export orders decline on Euro crisis

CHANDIGARH: Exports from Punjab have taken a hit due to the ongoing Euro debt crisis, with exporters of hand tools, sports goods, honey and woolen products complaining of decline in new orders by up to 25 per cent in the past few months.

"The exports are on downswing especially towards European countries because of debt crisis in Eurozone. As a result of it new export orders for engineering items are hard to come by," Engineering Export Promotion Council, Regional Chairman, S C Ralhan told reporters today.

Hand tool exports, which is a major export item to European countries, has taken a beating with new orders shrinking by 15-20 per cent, according to exporters.

"Our orders for hand tool like spanner from Eastern and Western Europe has fallen by up to 20 per cent in last couple of months and it seems that the situation is not going to be business friendly in coming months," said Ralhan, who is also a Ludhiana based hand tool exporter.

Hand tool exports to the tune of Rs 800 crore is undertaken annually from Punjab, with Europe constituting about 40 per cent of it.

Sports goods industry which is another major industrial hub in Punjab has also seen export orders waning in the wake of economic crisis in European countries.

Jalandhar is famous for manufacture of sports gear and its annual exports including to Europe, US, Australia and New Zealand is pegged at Rs 250 to 300 crore.

Punjab is one of the largest producers of honey in the country and contributes almost 25 per cent of country's honey production. It also undertakes large exports of the commodity.

Wool and Woollen exports from Punjab has also not been encouraging.

"New orders from several countries in Europe have come down by 20 to 25 per cent amid high degree of uncertainty existing in these countries. We have seen that buyers at our exhibitions are reluctant to place new orders," said Wool and Woollen Exports Promotion Council, Chairman Ashok Jaidka said.