12,169.85-54.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

$200 billion target by 2025 set for engineering exports

The paper released in Chennai said that India can achieve a three-fold "aspirational" increase in engineering exports by 2025 if efforts are made by Government and industry.

ET Online|
Updated: Mar 15, 2019, 03.58 PM IST
0Comments
Getty Images
exports 2 - getty
The strategy paper has identified areas such as product-market optimisation, eco-system development, promotion and branding, and competitive procurement of inputs for the ambitious goal.
CHENNAI: Raising the bar, India has set an aspirational target of $200 billion by 2025 for engineering exports, following a road map suggested by an EEPC India-Deloitte strategy paper, based on inputs from the Commerce Ministry and the industry.

The paper released at the ongoing International Engineering Sourcing Show (IESS) at Chennai said that India can achieve a three-fold "aspirational" increase in its engineering exports by 2025, if concerted efforts are made by Government and industry. Conducive ecosystem, branding and ensuring inputs at competitive prices would be the key factors for achieving the target, it said.

"On the basis of discussions with Ministry of Commerce, Government of India, and leadership of EEPC India, the aspirational target of Indian engineering exports is set as $200 billion by 2025, which is almost a threefold increase from 2017-18 exports," the paper said.

Releasing the paper, Commerce Secretary Anup Wadhawan said the Department of Commerce and EEPC would "quickly examine the road-map suggested by the strategy paper and make all possible efforts to achieve the identified potential."

Engineering exports, which contribute 25% of India's total export basket are projected at $80-82 billion in the current financial year ending March 31, according to EEPC India Chairman Ravi Sehgal. Sehgal said the $200 billion target can be achieved if "we get our act together" in ensuring that the basic raw material - steel - is made available at affordable prices.

The strategy paper has identified areas such as product-market optimisation, eco-system development, promotion and branding, and competitive procurement of inputs for the ambitious goal.

However, export performance would also depend on several external factors like investment by industry, global macroeconomic scenario, competing nation’s performance, trade policies, and approach towards protectionism.

The paper said India is not a 'leader' in any product category and continues to be a 'follower' nation. The technology intensity of India’s engineering export portfolio has not changed significantly over the decade, and it still exports low- and medium-technology intensive engineering goods. However, technology trends across product categories and emergence of digital technologies in manufacturing are expected to significantly change the engineering exports landscape.

Also Read

India's engineering exports declines for fourth straight month in September

Budget 2019: Engineering exporters seek fiscal relief

Engineering Export Promotion Council seeks alternative to interest subvention scheme

Govt to make efforts to push engineering exports to $200 billion by 2030

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service