Rise in exports of engineering goods would generate more jobs: EEPC India
New Delhi/IBNS: Continuing the uptrend, engineering goods exports have posted 42.14% growth in July, 2021 over the same period a year ago. The high growth in engineering goods augurs well for the economy as the sector is labour-intensive and one of the key foreign exchange (Forex) earners, said EEPC India Chairman Mahesh Desai.
"The high growth points to pent-up demand, fast recovery in US and European markets, and a robust order pipeline," said Mahesh Desai.
He said that the industry is coping with high input costs which have been a major concern among manufacturers and exporters.
Total merchandise exports during July 2021 were US$ 35.17 billion, up by 47.91% over the same period of 2020 (US$ 23.78 billion) and up by 34.06% over same period of 2019 (US$26.23 billion).
"Softening of raw inputs such as primary steel would make engineering goods more competitive internationally and generate additional orders. This will result in capacity expansion by manufacturers and hence more jobs," said Desai.
Rising logistics cost is another area which needs immediate intervention given that it has considerable impact on pricing and hence competitiveness in the international market.
Engineering goods has been one of the key sectors driving the high growth in overall merchandise exports over the last few months and contributed significantly in Post-Covid recovery in external trade.
"We hope that the government will soon notify the refund rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) which will provide a greater level-playing field to local players vis-a-vis foreign rivals," said Desai.