India should aspire to achieve a three-fold increase in its engineering exports to $110 billion by 2014, according to an Ernst & Young strategy paper released today.
The study, commissioned by the Engineering Export Promotion Council (EEPC), said that engineering exports would have to grow by 22-25 per cent annually for reaching the milestone.
"This, indeed, is a robust target and if the engineering sector is able to maintain its share of nearly 22 per cent in total exports, $110 billion is certainly achievable," Commerce and Industry Minister Anand Sharma said while releasing the paper.
In 2008-09, the country's engineering exports stood at $37.85 billion.
The share of engineering items in India's total exports is much lower than that of the developed world, the E&Y paper said.
In 2008, engineering exports contributed 23.6 per cent to the overall exports of the country.
Due to the global slump in demand, the country's overall exports contracted for 13 consecutive months since October, 2008, before turning positive from November, 2009.
Engineering exports are estimated to have declined by about 20 per cent in the last fiscal.
Sharma said the Directorate General of Foreign Trade (DGFT) is undertaking sectoral reviews, which are expected to be completed soon.
"Once the report is available to us, we will take a considered view for policy intervention," he said.
The paper suggested several measures to increase engineering exports. It said the government should give incentives for modernisation and induction of new technology at manufacturing facilities under the TUFS scheme.
The government should also set up a skill development fund to impart training in areas where technology upgradation is being initiated to enhancement productivity and quality, it said.