Government says that this target is achievable; it is also looking at incentives for modernisation and induction of new technology at manufacturing facilities
India should aspire to achieve a three-fold increase in its engineering exports to $110 billion by 2014, according to an Ernst & Young (E&Y) strategy paper released today, reports PTI.
The study, commissioned by the Engineering Export Promotion Council (EEPC), said that engineering exports would have to grow by 22%-25% 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% 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% 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% in the last fiscal.
Mr Sharma said that 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 that the government should give incentives for modernisation and induction of new technology at manufacturing facilities.
The government should also set up a skill development fund to impart training in areas where technology up-gradation is being initiated to enhancement productivity and quality, it said.
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