Engineering exporters from Gujarat are exploring newer export destinations in Latin American and South East Asian countries as conventional export destinations like US and Europe leave less business opportunity amid current gloomy economic condition.
Even as engineering exports accounts for the 21% of country's total exports, the sector is reeling under the impact of economic slowdown in key markets. Industry insiders maintained that the orders from US and Europe are slowing down, prompting the industry to consider newer export destinations including Latin American and South-East Asian countries.
Mr Bratin Bhattacharya senior deputy director of EEPC India during a promotional seminar for 'Indian Engineering Sourcing Show' to be organised in March 2012 by ministry of commerce and industry, government of India said that "Overall, global economy is in bad shape, but some of the emerging economies in Latin America are showing promising business potential. Orders have slowed from US and Europe, hence Indian exporters are exploring alternate export destinations.”
A senior official of a leading engineering tools exporting company in Ahmedabad said that "The scenario is not so good overseas, hence exporters are facing trouble. The engineering industry needs to focus more on domestic market for better business prospects.”
India's engineering exports recorded a fall of about 13% YoY basis at USD 7.16 billion during September 2011. However, during the period April to September 2011, engineering exports stood at about USD 46.4 billion out of the total USD 160 billion.
According to EEPC India, engineering exports from the country is targeted to growth at a compounded annual growth rate of 27.8% to reach at USD 125 billion by 2013-14. In the current year, EEPC aims to record exports worth USD 76 billion.
Source : steelguru.com