Engineering exporters should work on diversifying their export basket and explore new markets to boost shipments, a Top Government official said.
Commerce Secretary Rita Teaotia said that the Commerce Ministry is working to resolve issues being faced by engineering exporters and they should work on increasing their share in the global trade.
Engineering Export Promotion Council (EEPC) has raised issues related with delay in GST (Goods and Services Tax) refund, increasing raw material prices and increasing protectionism.
The share of India's engineering exports in the global engineering trade is 1.2 per cent and "it is fairly steady over the years" and increasing this share is an aspiration that "we need to work towards," she said here at EEPC India awards function.
She suggested the exporters to aim at doubling the share in the coming years. Teaotia also emphasised on the need to focus on 4-5 categories of the sector to boost the exports.
"We should try to become world leader in those 4-5 categories...We need to work to completely wipe out engineering trade deficit in the next five years," she said adding the deficit was about USD 16 billion last year.
"Diversify export basket and focus on newer markets for existing and new products. Work on a strategy and plan to look at these targets," she said. Talking about the challenges of the sector, she said energy cost and interest rates are high in India besides there are bottlenecks in areas such as logistics and transportation. "We need to address these concerns," Teaotia said.
The sector assumes significance as it contributes over 25 per cent in the Country's total merchandise exports. The exports from the sector increased to USD 76.2 billion in 2017-18 from USD 65.2 billion in the previous fiscal. Exporters who received awards by the Secretary and Minister of State for Commerce and Industry C R Chaudhary includes Gujarat-based Industrial Boilers, manufacturers of turbines and boilers for power generation. There is a huge potential to further boost engineering exports, Homai Engineer, CMD Industrial Boilers Ltd said.