Brexit likely to hit engineering exports: EEPC

MUMBAI: Since European Union accounts for nearly a fifth of India's engineering exports, the impending exit of the UK from the union is likely to have a deep impact on India, exporters said.

"EU, including UK, claims nearly one-fifth of the country's engineering exports to top 25 destinations, and therefore, any upheaval in the largest trading partner following Brexit would have an impact of great magnitude on the exporters who are already in a state of distress," Engineering Exporters' Apex Body EEPC India Chairman T S Bhasin said in a statement recently.

India's total engineering exports to top 25 destinations were around $ 7.6 billion for the April-May period of the current fiscal.

Of this, the EU members contributed $ 1.5 billion and the UK was at the top of the list, followed by Germany. "Seven of our 25 destinations are from EU.

So, any upheaval in the market as a result of political division will have wide economic ramifications on trade, investment and currency movement which should be a cause of worry for us," he said.

Bhasin further said that though a two-year window of negotiations for the exit of Britain is available, the current indications point towards extreme political stand by a divided British polity and the EU leadership.

Source: - Dailyshippingtimes.com