Export orders began reducing about a year ago and the percentage has gradually risen, said Avinash Gupta, MD, R.N.Gupta & Co and convenor, steel forgings product panel, Engineering Export Promotion Council (EEPC), India.
Ludhiana, Punjab-based R.N.Gupta & Co manufactures forged components and parts such as steering components for the automobile industry. It exports its products to the US, UK, Turkey and a few other countries within the EU region.
Developing new markets, like the US or Canada, can take time, Gupta said. While small to medium forgeries are at it, the country’s central bank could extend its interest subsidy scheme to forgeries and other engineering industries as well, he said.
The interest subsidy or subvention scheme directs banks to reduce the interest rate chargeable to exporters. Smale scale units, labour-oriented, exporting handicrafts, handloom, carpets, readymade garments and processed agriculture products enjoy a two percent interest subsidy up to March, 31, 2013.
In the past, the government did extend a three percent interest subsidy to engineering goods' exporters, Gupta said.
“Our input costs have gone up. Freight charges are up. Interest rates in India are too high when compared to rates in developed countries,” Gupta said.
India’s industrial output struggled to grow in July, according to government data. Output at factories, mines and utilities grew 0.1 percent in the span of a year, according to news reports.