EEPC explores new markets in Africa for engineering products
Updated: Jul 16, 2013 03:14:24pm
New Delhi, Jul 16 (KNN) EEPC India is actively on the lookout for new markets in the African continent, to offset the drop in engineering exports and given the sagging global economy.
In the second interactive round table with over 30 diplomats of key African countries, senior Commerce Ministry officials and top leadership of EEPC held brainstorming session on ways to increase India’s trade with Africa, particularly in the engineering products, according to an official notification.
The move comes in the backdrop of a sharp year-on-year fall of 9.25 per cent drop in engineering exports in June despite rupee depreciation by about the same ratio during the last two months.
Speaking on the occasion, Additional Secretary (Commerce Department) D S Dhesi attached greater importance to the share of India's engineering exports to the African continent in an effort to arrest negative growth in India’s overall trade.
India’s overall engineering exports fell by 9.26 per cent to USD 4223.29 million from a revised figure of USD 4654.47 million achieved during June 2012. This implies that the decline has exacerbated from -3.15 per cent in May 2013. Thus, the average growth rate for the first quarter of 2013-14 was -7.53 per cent.
Meanwhile, EEPC Chairman Aman Chadha in his presentation said several segments of the sector were suffering. “Heavy weight engineering segments seem to be facing considerable demand problem in external markets and there is, so far, no visible impact of the currency depreciation on our exports,” he said.
Important engineering export segments like iron and steel, products of iron and steel, copper and copper products, motor vehicles and aircrafts, space crafts and parts have witnessed sharp decline in exports.
Out of the 33 engineering panels, 19 engineering panels recorded negative growths in the month of June 2013 as opposed to 16 such panels in the month of May 2013.
While the overall trade with Africa is much below the potential, India and Africa can help each other tide over the impact of global slowdown, Chadha said.
Africa is recovering from the global crisis of 2009 and it is sustained even though a new global slowdown is constraining Africa’s growth, like that of many other regions. With the gradual recovery of North African economies, Africa’s average growth is expected to rebound to 4.8 per cent in 2013.
“While keeping an eye on new economic storm clouds in Europe, both India and Africa must keep its focus on reforms that encourage growth and foster bilateral trade and investment between our two regions,” he added.
That synergy exists between India and Africa can be gauged from the recent robust trends in Indo-Africa trade relations wherein bilateral trade has risen by two times in the last 5 years from 34 Billion USD in year 2008 to 65 Billion USD in year 2012.
India and Africa have also revised the bilateral trade targets for 2015 to USD 100 billion from the current levels.
In his remarks, EEPC Senior Vice Chairman Anupam Shah said several top Indian companies including NTPC, SAIL, BHEL, Maruti Suzuki, Reliance, L&T, Punj Lloyds, Escorts Construction, Toyota Kirloskar, EIL, EPL Ltd were seeking the possibility of enhancing engagement with the mineral-rich African continent.
He mentioned that opportunities would be available at the forthcoming India Engineering Sourcing Show scheduled to be held in Mumbai in January 2014 where 400 Indian exhibitors are expected to participate. The event would see 100 international exhibitors, 1000 foreign delegates and 10000 domestic visitors.
Participants of the second interactive round table included Additional Secretary D S Dhesi, and Joint Secretary Ravi Capoor (both from the Commerce Department), Joint Secretary MEA Ravi Bangar, and top leadership of EEPC.
EEPC, also called the Engineering Exports Promotion Council have received support from the Commerce and External Affairs Ministries in this regard. (KNN)
In the second interactive round table with over 30 diplomats of key African countries, senior Commerce Ministry officials and top leadership of EEPC held brainstorming session on ways to increase India’s trade with Africa, particularly in the engineering products, according to an official notification.
The move comes in the backdrop of a sharp year-on-year fall of 9.25 per cent drop in engineering exports in June despite rupee depreciation by about the same ratio during the last two months.
Speaking on the occasion, Additional Secretary (Commerce Department) D S Dhesi attached greater importance to the share of India's engineering exports to the African continent in an effort to arrest negative growth in India’s overall trade.
India’s overall engineering exports fell by 9.26 per cent to USD 4223.29 million from a revised figure of USD 4654.47 million achieved during June 2012. This implies that the decline has exacerbated from -3.15 per cent in May 2013. Thus, the average growth rate for the first quarter of 2013-14 was -7.53 per cent.
Meanwhile, EEPC Chairman Aman Chadha in his presentation said several segments of the sector were suffering. “Heavy weight engineering segments seem to be facing considerable demand problem in external markets and there is, so far, no visible impact of the currency depreciation on our exports,” he said.
Important engineering export segments like iron and steel, products of iron and steel, copper and copper products, motor vehicles and aircrafts, space crafts and parts have witnessed sharp decline in exports.
Out of the 33 engineering panels, 19 engineering panels recorded negative growths in the month of June 2013 as opposed to 16 such panels in the month of May 2013.
While the overall trade with Africa is much below the potential, India and Africa can help each other tide over the impact of global slowdown, Chadha said.
Africa is recovering from the global crisis of 2009 and it is sustained even though a new global slowdown is constraining Africa’s growth, like that of many other regions. With the gradual recovery of North African economies, Africa’s average growth is expected to rebound to 4.8 per cent in 2013.
“While keeping an eye on new economic storm clouds in Europe, both India and Africa must keep its focus on reforms that encourage growth and foster bilateral trade and investment between our two regions,” he added.
That synergy exists between India and Africa can be gauged from the recent robust trends in Indo-Africa trade relations wherein bilateral trade has risen by two times in the last 5 years from 34 Billion USD in year 2008 to 65 Billion USD in year 2012.
India and Africa have also revised the bilateral trade targets for 2015 to USD 100 billion from the current levels.
In his remarks, EEPC Senior Vice Chairman Anupam Shah said several top Indian companies including NTPC, SAIL, BHEL, Maruti Suzuki, Reliance, L&T, Punj Lloyds, Escorts Construction, Toyota Kirloskar, EIL, EPL Ltd were seeking the possibility of enhancing engagement with the mineral-rich African continent.
He mentioned that opportunities would be available at the forthcoming India Engineering Sourcing Show scheduled to be held in Mumbai in January 2014 where 400 Indian exhibitors are expected to participate. The event would see 100 international exhibitors, 1000 foreign delegates and 10000 domestic visitors.
Participants of the second interactive round table included Additional Secretary D S Dhesi, and Joint Secretary Ravi Capoor (both from the Commerce Department), Joint Secretary MEA Ravi Bangar, and top leadership of EEPC.
EEPC, also called the Engineering Exports Promotion Council have received support from the Commerce and External Affairs Ministries in this regard. (KNN)
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