Engineering exports this financial year are expected to be almost the same as that of last year (2018-2019), according to Ravi Sehgal, chairman of EEPC India.
Mr. Sehgal, who was in Coimbatore on Thursday, told The Hindu that at the beginning of 2019-2020, the estimate was that engineering exports this fiscal would be about $85 billion. Between April and November 2019, the exports were down 1% compared to the same period the previous year. “Last financial year, it was $ 81 billion. This year, it is expected to be almost the same,” he said.
The U.S. and the EU are major destinations for engineering exports and China’s supplies have come down drastically due to several reasons such as pollution issues, high labour cost, anti-dumping duties, etc.
European clients had approached Indian companies in the beginning of this financial year as Chinese supplies reduced. But, India did not have adequate capacity.
“We have capacity shortages. We would have reached $90 billion [engineering exports] if [we had had] capacity,” he said.
Now that Indian exporters know that there is potential, they are investing. Most of the foundries are in the MSME sector and so, investments for capacity expansion do take time, he said. “India is still a preferred destination. We will see the effect in 2020.”