Hit by sluggish demand in western markets like the US and Europe, engineering exporters are targeting up to 10% exports' growth in the current fiscal, the Engineering Export Promotion Council said today.
During 2012-13, engineering exports declined 3% to $56.7 billion compared to the previous fiscal, according to the data provided by the Engineering Export Promotion Council (EEPC), which is under the Ministry of Commerce.
The engineering sector is one of the major contributors to the country's total merchandise shipments. But as of now, there has been a flat growth in engineering exports due to weak demand in western markets like the US and Europe, an EEPC official said.
"We will be happy even if we (exports) could grow by maximum 10% in the 2013-14 fiscal," he said.
The US and Europe together account for over 60% of India's total engineering exports.
The official said that although exporters have found new markets such as those in Latin America and Africa, but they are cautious while exploring new destinations due to reasons such as fear of payment default.
Even in the first month of the current fiscal, engineering exports continued to decline, dropping by 10% year-on-year to $4.5 billion.
The council feels that the government needs to take urgent steps to boost exports from the sector in the coming years.
Engineering exports include transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.
