Engineering exporters mulling strategy for European markets

Engineering exporters are mulling new strategy to revive demand in Europe where shipments have dropped despite pick-up in other markets.

Europe which accounts for 25 per cent of India's engineering exports of $33 billion, is witnessing slowing down of demand.

Opening warehouses and showrooms in different parts of Europe would be a part of new strategy being worked out, an official of the Engineering Export Promotion Council (EEPC) said. These facilities along with the promotional activities are planned in Germany and Turkey, he said.
    
While engineering exports during April-July period increased by 35 per cent, the dispatches to Europe were down five per cent.
    
These exports which were hit hard by recession in the developed markets in 2008, had declined to $33.67 billion in 2009-10. While the recovery began since December last year, the problem persisted in Europe.
    
"If the problem persists for long, we have to sit together and revise strategies," the EEPC official said.
    
In the revised edition of the Foreign Trade Policy, the Commerce Ministry has announced certain incentives for the engineering exports.
    
Exporters for a number of engineering products would get two per cent interest subsidy.
    
The government also extended Duty Entitlement Pass Book (DEPB) scheme, under which taxes are reimbursed to exporters, for a further period of six months till June 30, 2011.