The country’s engineering exports in the first quarter of the current fiscal dropped 23 per cent vis-À-vis the same period of last year, according to a statement issued by EEPC India.
The declining trend that started in the second half of 2008-09 continues in the current fiscal also, with no sign of abatement, said the statement.
At a meeting with Mr R.S. Gujral, Director-General Foreign Trade, recently, Mr Aman Chadha, Chairman of EEPC India, suggested extension of the scope of the Foreign Market Benefit Scheme for three years also to cover EU and the US together accounting for 40 per cent of the country’s total engineering exports.
He also pleaded with the DGFT for increasing the threshold limit of MDA benefit which, it was felt, should not be linked to the value of exports at least for next five years in view of the present recessionary situation globally.
In order to boost the share of value-added products in the country’s exports of engineering products, he suggested making available to the engineering export sector the technological upgradation fund scheme as the industry suffered from technological obsolescence so much so that the share of value-added products in the country’s engineering exports was a meagre two to three per cent.
Among other suggestions included extension of line of credit to developing countries, inviting foreign manufacturers to conduct vendor development programme under MAI scheme, bringing down duty on EPCG scheme to zero and increase in promotional budget, particularly a special advertising budget to INDEEs (Indias Engineering Exhibitions) across the globe.
Source : Business Line