NEW DELHI: Engineering exports plunged by about 22 per cent to $2.8 billion in May compared to the same month last year as demand fell in the major global markets.
Although the magnitude of decline in engineering exports has been arrested during May, exporters are not hopeful of recovery in demand in the international market in the coming months.
Engineering exports fell by 26 per cent in April 2009, the Engineering Export Promotion Council said today.
"The decline has reduced," Engineering Export Promotion Council Chairman Aman Chadha said, adding that "Engineering exports have a long gestation period and we get orders three to four months in advance We had orders till March and now very few orders have been renewed."
Exporters are pinning their hopes on revival of demand in the major markets due to large stimulus packages. However, at best only tentative revival signs could be visible in select export destinations.
"We see a demand improvement only after the first six months of the current fiscal as global economies are likely to revive by this time," Chadha said.
India's overall exports have been contracting for the last eight months.
Source : The Economic Times