| Date: |
17-11-2010 |
| Subject: |
Improve FDI, Infrastructure to Boost Engineering Exports: EEPC |
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New Delhi, (PTI) The government should take steps like increasing foreign direct investment and improving infrastructure in the engineering sector to push up the segment''s exports vis-a-vis China.
"When we compare to economic population with China it is same, labour cost and resources are same and same markets but still china grew at a faster pace in value terms," Engineering Export Promotion Council (EEPC) Chairman Aman Chadha told reporters here today.
China''s engineering exports went up to USD 956 billion in 2008 from USD 137 billion in 2001.
On the other hand, India''s engineering exports increased to only USD 41.5 billion in 2008 from USD 6.7 billion in 2001.
While releasing a study of EEPC and Indian Institute of Foreign Trade on engineering sector of India and China, Commerce Secretary Rahul Khullar said that his department would look at the report to see how the country''s engineering exports can compete with Chinese in the international market.
"The objective of the study is to identify where we have a competitive edge over China and vice-versa...," Khullar said.
Chadha said that China is taking over India in various segments of engineering exports like iron and steel and copper.
The study said that higher FDI would allow India to further develop its infrastructure and improve manufacturing sector.
"Another main factor in increasing FDI flows is making it easier to enter and exit the Indian market. Until these factors are addressed foreign companies will continue to choose other destinations for their investment like China, Brazil or Malaysia," the study said.
It also said that like China, India should give preferential treatment to the businessmen in getting better access to power supply and transportation that would lead to more investment in manufacturing sector.
It further said that the self-financing schemes for incentives must be introduced specially for small and medium enterprises.
"Special incentives for exports from SMEs should also be formulated," the report said.
India''s engineering exports increased to USD 3.7 billion in October from USD 2.1 billion in the same period last year, thanks to the growing demand from the US and European markets.
During April-October 2010-11, the exports saw a growth of 44 per cent to USD 26 billion compared to USD 18 billion in the year-ago period.
Source : news.in.msn.com
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