The Export Engineering Promotion Council (EEPC) has suggested that exporters of engineering products look out for new markets, reports Zee News India. This recommendation comes in view of the declining exports over the last few months, on account of sluggish demand in the US and European markets.
Aman Chadha, chairman of EEPC, stated: "Last year, we have visited Turkey and Canada to explore business opportunities. This year, we will visit Japan to see what opportunities we get there for engineering products. We will also visit Czech Republic this year."
The 2011-12 fiscal started on a hopeful note for engineering product exports, with India’s engineering exports around USD5 billion in April 2011, which rose to USD 6 billion in May. The figures fizzled out after that due to the crisis in the western countries, and this declining trend continued till November. Exports were as low as USD3.8 billion in November, indicating a sharp decline of 37 percent.
Exports started rising from December, owing to Christmas sales and rising demand from the West.
“The last three months i.e. January, February and March have been better for engineering exports as compared to the months of September, October and November," stated Chadha.
Exports from the sector were recorded at USD4.6 billion in December, and at USD4.73 billion and USD4.79 billion in January and February 2012 respectively. Total engineering exports by India are expected to be around USD62 billion by the end of March 2012. Chadha stated that it is highly possible for the export target of USD72 billion for the current fiscal to be missed.
In spite of the declining trend, engineering exports for the first 11 months of the fiscal 2011-12 (April 2011 to February 2012) have indicated a rise of 20.9 percent over the same period in 2010-11.