Ferrous goods exports up 36 per cent

Engineering exports from the country rose 28 per cent despite rising input cost, an appreciating rupee and high marine freight rates in the year ending March 2004 against the previous year.

Exports touched $ 10.1 bn last fiscal as compared to $ 7.87 bn previous year. Prime iron and steel including ferro alloys shipments grew 36 per cent. Export of iron and steel products and consumer durables increased 28 and 35 per cent respectively.

However, exporters had to accept lower margins.

"We could not pass the entire rise in input cost and higher freight rate to overseas customers. So even as export grew, our profitability was not commensurate," Ravi Sehgal, regional chairman of Engineering Export Promotion Council (EEPC), said.

During the second half of last fiscal, cost of foundry grade pig iron for casting and forging industry rose 50-75 per cent. Marine freight charges rose 25 per cent in the second and third quarter.

EEPC has predicted growth of 24 per cent in this fiscal to $ 12.5 bn. It expected prime iron and steel exports to grow this fiscal. Some said the performance of last year may not be repeated this fiscal as China was working to cool down its economy.

"Lion's share of the growth had come from China. If shipments to that country slow down, we have to brace for only 10-15 per cent growth this year," Sehgal pointed out.