Engineering goods shipments have continued its impressive run dominating the exports basket. The high growth rate has come on the back of sharp recovery in the key markets, pent-up demand and an aggressive export push by the government, said EEPC India chairman Mahesh Desai.
Engineering goods exports grew 51% year-on-year in the month of October, 2021.
"The high-double digit growth in outward shipment of engineering goods is set to support the economy and create more jobs given that the sector is highly labour-intensive," he said.
Desai said that the rising export demand would lead to capacity expansion and hence higher overall private investment which has been subdued.
"But for seizing the opportunity there is a need to substantially improve cost competitiveness. While the government needs to further improve ease of doing business and lower the logistics cost, the industry needs to invest in upgrading technology," he noted.
"Engineering goods could be a force multiplier and boost the manufacturing sector in a big way," he added.
Source:economictimes.com