Question mark on growth of engineering export this fiscal.

KOLKATA: EEPC India (formerly Engineering Export Promotion Council) is apprehensive about maintaining growth in engineering export in the current fiscal.

Engineering export is the single largest component of India's export and constitute 20% of total export. Indian engineering export in 2011-12 was $ 60.3 billion (over Rs 30,000 crore), a 21% growth over 2011-12. The senior vice chairman of EEPC India, Anupam Shah feels that it would be difficult to maintain over 20% growth in engineering export in 2012-13 following slow recovery in Europe and United States and excess capacity in China.

Incidentally, US, Europe, China constitute major portion of engineering export. "We were not confident about achieving the target in 2011-12. But we have made it. But this fiscal will be difficult. Export to Europe will be down. In Latin America currency adjustment is going on in Brazil. Argentina is also not in a good shape," he said. Shah pointed out that there is lot of excess capacity in China as well. "Lot of factories in China are not fully occupied. It was the second largest imported in 2010-11 though in 2011-12 it was in fourth position. This year it may be worse. So 2012-13 may not be very rosy," he added.

Source : timesofindia.indiatimes.com