A Share of 21% of India's Total Exports Attributed to Engineering Exports
Date : December 23, 2011
Number of Views : 494
The Minister of State for Commerce & Industry says that engineering & chemical industries are the way to the future. Engineering exports now accounts for the 21 percent of our total exports.
He said, "Within engineering, we need to move up the value chain both in terms of domestic production and exports. Engineering exports now accounts for the 21 percent of our total exports. Increasing exports of engineering sector has to be a major goal in any strategy for doubling exports in three years,"
He presented the 42nd national award for export excellence, organised by the Engineering Export Promotion Council (EEPC), in the national capital on Tuesday. The Minister during his speech remarked that, trading performance especially in exports depends on an economy’s openness to competition on the world market.
With this in mind, India has launched important structural reforms to liberalize the market and attract FDI, which are the drivers of economic growth. The Minister said that Indeed, 2009-10, was an extremely difficult year in the aftermath of the sub-prime crisis that enveloped the developed world, particularly, the US and the EU, which are the two big markets for Indian engineering exports.
India’s engineering exports declined by over 19 percent to USD 32.5 billion in 2009-10 largely as a consequence of global banking crisis. On exports growth in 2011-12, the minister said, "In the first 8 months of the fiscal, we have come close to USD 200 billion. I am quite confident that we will be able to close the fiscal at USD 280 billion."
"India’s total exports also declined by 3.53 percent to USD 179 billion as did India’s total imports by 5.05 percent to USD 288 billion. Clearly, therefore, the Awards Winners in 2009-10 in the engineering sector are true champions and have the ability to take on the most difficult challenges that the global environment can offer."
During April-November, the country's total exports have been calculated at USD 192.7 billion. Engineering industry is one of the most employment intensive sector in the country.
According to the latest available data in Annual Survey of Industries, 2007-08, out of the 25 major industry groups at two digit level of NIC-2004 classification, engineering industry accounts for 8 groups.
These 8 engineering groups represent 25.98 percent of total factories in India, 34.91 percent of invested capital, 28.86 percent of total persons engaged, 36.35 percent of total industrial gross output and 40.83 percent of the total Net Value added.
To top it all, engineering exports accounts for over 20 percent of India’s total exports. While addressing the winners Scindia said that, given our tremendous capabilities in the engineering sector, we must also look forward to widen our markets for the wide range of engineering products made in India. He also outlined the Special Focus Market Scheme, which has been specially designed for this purpose.