Exports of engineering goods touched $5.5 bn in Q1
Indian exports of engineering goods touched $ 5.5 billion in the first quarter of the current fiscal growing by more than 20% making it the largest contributor to India's total merchandise exports.
By TNN |
NEW DELHI: Indian exports of engineering goods touched $ 5.5 billion in the first quarter of the current fiscal growing by more than 20% making it the largest contributor to India's total merchandise exports.
Speaking at the all India awards function for outstanding export performance organised by the Engineering Export Promotion Council (EEPC) in Chennai on Thursday, commerce and industry minister Kamal Nath called for rapid development of engineering process outsourcing (EPO) services from India as it would have a far-reaching impact on the Indian engineering industry as a whole.
"The spurt in engineering outsourcing can be gauged from the fact that a number of giant automotive and aerospace companies such as Ford Motor Company, General Motors, Boeing and Airbus have some of their engineering done by Indian technology companies," he said.
The minister pointed out that the EPO market in India has the potential to exceed US $ 40 billion by 2020, which will catapult India's market share in the same category to 30% from the current 12%. To tap this EPO market all the important stakeholders, including the Government, academic institutions, service providers and trade bodies will need to boost investments in infrastructure and improve marketing efforts, he said.
The minister complimented EEPC for pioneering a study on EPO services, which involve delegating engineering-related work to other companies taking advantage of low labour cost, quality talented tool etc. which are abundantly available in India. According to EEPC chairman Rakesh Shah, the final report on EPOs would be ready by October this year.
Speaking at the all India awards function for outstanding export performance organised by the Engineering Export Promotion Council (EEPC) in Chennai on Thursday, commerce and industry minister Kamal Nath called for rapid development of engineering process outsourcing (EPO) services from India as it would have a far-reaching impact on the Indian engineering industry as a whole.
"The spurt in engineering outsourcing can be gauged from the fact that a number of giant automotive and aerospace companies such as Ford Motor Company, General Motors, Boeing and Airbus have some of their engineering done by Indian technology companies," he said.
The minister pointed out that the EPO market in India has the potential to exceed US $ 40 billion by 2020, which will catapult India's market share in the same category to 30% from the current 12%. To tap this EPO market all the important stakeholders, including the Government, academic institutions, service providers and trade bodies will need to boost investments in infrastructure and improve marketing efforts, he said.
The minister complimented EEPC for pioneering a study on EPO services, which involve delegating engineering-related work to other companies taking advantage of low labour cost, quality talented tool etc. which are abundantly available in India. According to EEPC chairman Rakesh Shah, the final report on EPOs would be ready by October this year.
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