Engineering exports likely to touch $80 billion this fiscal on healthy growth in major markets: EEPC

New Delhi: India’s engineering exports are likely to touch $80 billion this fiscal on account of healthy growth in key markets, including the US and Europe, EEPC said on Tuesday. Engineering Export Promotion Council (EEPC) also said the government should resolve issues related to credit availability and certain procedural matters to further boost the exports. [caption id=“attachment_4233495” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] In 2017-18, the exports stood at $76 billion. The sector accounts for about 25 percent of the country’s total merchandise exports. “In 2018-19, we are expecting that we would touch $78-80 billion as order books are good from the US and Europe,” EEPC India chairman Ravi Sehgal told PTI. To boost the growth, he demanded that the manufacturers should get steel at global prices as domestic prices are quite high. “Downstream players of engineering are impacted due to high steel prices,” he added. Further, the council has demanded more measures such as high incentive rates under the Merchandise Exports from India Scheme (MEIS). EEPC executive director Suranjan Gupta said the council has demanded increase in the MEIS rates from 5-7 percent from the current 2-3 percent. He also asked for setting up of a shipping regulator, which should look at exporters’ issues particularly the prices being charged by shipping lines, which are mainly foreign owned. Shipments to North America and Europe account for about 40 percent of the total exports from the sector. Since 2011-12, India’s exports have been hovering at around $300 billion. During 2017-18, the shipments grew by about 10 percent to $303 billion. Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.