Engineering Export Promotion Council (EEPC) offered suggestions for increasing India's engineering exports
In order to increase engineering exports and hit the target of US$ 300 billion by 2030, a strategy paper created by Engineering Export Promotion Council (EEPC) India makes several recommendations, including pursuing new free trade agreements (FTAs) with developing nations in Latin America and Africa, implementing a programme to support MSMEs in research and innovation, establishing a domestic shipping line, and internationalising Indian products.
In a meeting called by the Ministry of Commerce and Industry, the Chairman of EEPC India, Mr. Arun Kumar Garodia discussed various recommendations in the strategy paper to boost India's engineering exports. The meeting was chaired by Union Minister for Commerce and Industry Minister, Mr. Piyush Goyal.
The strategy plan asks for expanded market access, particularly in Latin America and Africa, which could grow to be important export markets for India. It has been noted that by diversifying into non-traditional markets, the risk brought on by unforeseen economic events can be dispersed, lowering reliance on a small number of markets.
Regarding the strategy paper, Mr. Arun Kumar Garodia stated that more than 87% of India's engineering exports are currently going to just 40 different nations. As a result, there is a tremendous chance to explore new markets while growing the current clientele. He further stated that it is quite crucial for India to explore new markets, especially in Latin American and African countries. Many of their competitors have already established FTAs with these countries and as a result, are having a competitive edge over them. FTAs with these countries can level the playing field, ensure fair market access, and expand the exports.
He advised strengthening its presence in Europe as a top priority by implementing an FTA with the EU as one way to broaden the current market base. Focussing on the importance of the engineering sector, he said that the industry accounts for 25% of the country’s total exports and is the largest foreign exchange earner. MSMEs account for 35-40% of total engineering exports and therefore are crucial job providers.
According to Mr. Arun Kumar Garodia, constructing a domestic shipping line would lower trade expenses, lessen reliance on international shipping lines, and save enormous sums of priceless foreign currency. The success in particular product categories and markets, he continued, required focused efforts in branding and marketing.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.