Dip in engineering exports matter of concern: EEPC India chief
Kolkata, May 16 (KNN) The Engineering Exports Promotion Council (EEPC) India has expressed concerns over dropping of exports of engineering goods sharply in the recent months from India, which has effected trade deficit.
“Virtually no growth in merchandise exports and a sharp drop of over seven per cent in highly employment -oriented engineering exports in April, 2019 is a matter of concern for Indian exporters," said EEPC Chairman Ravi Sehgal.
Indian exporters are facing global head winds like escalated trade war, geo-political uncertainties in the Middle East and rising cost of finance and raw material at home, he added.
He said that the data makes it imperative for the RBI to cut the interest rates in its June credit policy review while measures like availability of raw material like steel at reasonable prices should be ensured by the government.
According to the official data released by the Ministry of Commerce, the trade deficit, a gap between exports and imports, expanded to $15.33 billion in April 2019 as compared to $13.72 billion in April 2018 and $10.89 billion in last month.
Exporters expressed their disappointment with the fall in shipments in labour-intensive sectors including leather & leather products, gems & jewellery, engineering goods, cotton yarns, fabric & made-ups, carpets and marine products and pointed out that escalating global tension was making the situation worse.
Fall in exports in high-performance sectors such as gems and jewellery and engineering products slowed down the overall goods exports by 0.64 per cent (year-on-year) to $26.07 billion in April.
Engineering exports include transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.