Despite rising concerns over the global economic slowdown,Engineering Exports Promotion Council (EEPC),under the Ministry of Commerce and Industry,is bullish on achieving 20 per cent increase in exports to USD 100 billion by FY 13.
“Engineering is the only sector which did not face a major impact during the global slow down as there is a huge demand for engineering products in the international markets.
We expect exports to reach USD 100 billion by FY 13,” EEPC Chairman Aman Chadha said.
India reported exports worth USD 60 billion in FY 11,and expects to achieve USD 80 billion exports this fiscal.
“In the first half of the fiscal,the exports stood at USD 51.4 billion,which is nearly 80 per cent of our target. But there are concerns about the second half…we are feeling the heat as order inflow has slowed down and at times is even nil. But our strategy to diversify to newer geographies will help us achieve the target,” he said.
Exporters are now shifting their focus from the traditional markets like the US and Europe Union,which contribute to nearly 40 per cent of the total exports,to other emerging markets,Chadha said.
“We are now looking at newer markets like Brazil,Columbia and Latin America. These markets have been out of bound for exporters because of various challenges. But depression in the traditional markets have forced them to go to these markets,where the demand for engineering products is increasing,” he said,adding “these markets will help exporters in increasing their profitability”.
However,Chadha also stressed that government needs to take initiatives to encourage exports.
“Raw material,interest rate hike have been major concerns for the industry apart from inadequate infrastructure facilities including ports. Freight rates have also been a concern for the exporters who are also facing the challenge of uncertainty in foreign exchange rate. If these issues are addressed,we will be able to achieve or even surpass our targets,” Chadha added.