BusinessIndia

Uptrend in export of engineering goods from India would support jobs and growth: EEPC India

Kolkata: With demand from major markets staying robust, engineering goods exports from India continued the uptrend and posted a 52.61 per cent increase in June 2021 over the same period last year, according to EEPC India.

As per preliminary official data, India’s merchandise exports in June 2021 was USD 32.46 billion, an increase of 47.34 pc over USD 22.03 billion in June 2020 and an increase of 29.7 pc over USD 25.03 billion in June 2019.
EEPC India Chairman Mahesh Desai said that the growth was notable since the second wave of the pandemic had posed downside risks due to logistical and manpower issues.

“Not only those risks have subsided now but the government has also come up with economic relief measures that would certainly boost economic growth,” said Mr Desai.

He said that the strong rebound in engineering goods export would support growth and employment.
Among the concerns faced by the engineering goods exporters, especially MSMEs, he flagged high ocean freight rates and elevated prices of primary steel weighing down the sector.

Hailing the stimulus package announced by the government and extension of interest subsidy scheme for exporters, Mr Desai hoped that engineering goods export would stay positive in the current fiscal.

“The stimulus package would lift sentiment and push domestic demand which has been subdued.

The additional credit guarantee of Rs 1.5 lakh crore would help the MSME sector to bridge cash deficit. The export insurance cover would give further impetus to the sector,” said EEPC India Chairman.

Mr Desai said that the economic outlook would get better as vaccination coverage widens and economic relief measures roll on.

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