India's export of engineering goods may decline by up to 15% during financial year 2015-16 due to the depressed global economic situation that has impacted demand, Ravi Sehgal, Senior Vice-Chairman, EEPC India (formerly Engineering Export Promotion Council), told ISMW.
The engineering goods export volumes for the current financial year were projected at $75-77 billion against actual exports of $70 billion in 2014-15.
“However, the same will be a little shy of $70 billion in actuality. If it touches $70 billion, we will be very upbeat…” Sehgal said, while speaking on the sidelines of the EEPC India Regional Award presentation meet.
The share of iron and steel in engineering goods is a good 65% and hence the steel sector would be impacted by the decline consequently.
Corroborating Sehgal, Arun Kumar Garodia, Regional Chairman, EEPC India, said overseas shipments of engineering exports have been witnessing a downtrend. Cumulative engineering exports from India dropped 17.80% during April 2015-January 2016 to $49.28 billion from $59.96 billion reported during the same period of the previous fiscal, he said.
He added that this cumulative fall was marginally higher than that witnessed in April-January, 2015, at around 15%.
The main reasons for lower overseas shipments were slackening demand from across the globe, following the slowdown in the developed countries and recession in some of the emerging economies.
India’s engineering goods exports had increased to $61.5 billion in 2013-14 from $ 57 billion in the previous fiscal. In the last 5 fiscals, India’s engineering exports were negative only in 2012-13.