India’s engineering exports are likely to touch USD 80 billion this fiscal on account of healthy growth in key markets, including the US and Europe, EEPC said Tuesday.
Engineering Export Promotion Council (EEPC) also said the government should resolve issues related to credit availability and certain procedural matters to further boost the exports.
In 2017-18, the exports stood at USD 76 billion. The sector accounts for about 25 per cent of the country’s total merchandise exports.
“In 2018-19, we are expecting that we would touch USD 78-80 billion as order books are good from the US and Europe,” EEPC India Chairman Ravi Sehgal told PTI.
To boost the growth, he demanded that the manufacturers should get steel at global prices as domestic prices are quite high.
“Downstream players of engineering are impacted due to high steel prices,” he added.
Further, the council has demanded more measures such as high incentive rates under the Merchandise Exports from India Scheme (MEIS).
EEPC Executive Director Suranjan Gupta said the council has demanded increase in the MEIS rates from 5-7 per cent from the current 2-3 per cent.
He also asked for setting up of a shipping regulator, which should look at exporters’ issues particularly the prices being charged by shipping lines, which are mainly foreign owned.
Shipments to North America and Europe account for about 40 per cent of the total exports from the sector.
Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion.
Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.