Engineering exports grew 18.69 per cent in January to $7.17 billion as demand in major markets, including the EU and the US, showed “robust recovery’’ setting the stage for improved performance in the coming months, according to the Engineering Export Promotion Council of India (EEPC).
“According to an assessment done by EEPC, which has 60 per cent of its members from the MSME sector, the past few months have shown a robust recovery in the external demand in the major markets of the US and Europe besides several key Asian economies,” according to EEPC India Chairman Mahesh Desai.
Engineering exports for January were up at $7.17 billion, from $6.01 billion in the same month last fiscal, raising prospects for February and March, Desai said. “Exporters have navigated the post-Covid global market with innovative offerings to the buyers,” he added.
Budget measures
The measures taken by the government in Budget aimed at reining in prices of steel, the key raw material of engineering products, will also play a significant role in boosting exports, an EEPC statement said.
Utilising the Production Linked Incentives (PLI) scheme under the Atmanirbhar Bharat programme, engineering exporters are planning new value-added items in their external portfolio. “Market diversification, helped by the PLI scheme, would go a long way in scaling up engineering exports which contribute about 25 per cent to the country's total merchandise export basket,” Desai said.