Engineering exports a casualty of fierce fighting in Iraq
Updated: Jul 03, 2014 12:07:39pm
New Delhi, Jul 3 (KNN) Fierce fighting in Iraq has made a casualty of India’s engineering exports to the war-ravaged economy, slumping by annualised 54.30 per cent in May 2014 over the same month last year even as the situation there is worsening, almost halting shipments there, EEPC India said.
“Engineering exports dropped sharply to mere USD 9.14 million in May 2014 from USD 20 million a year ago,” EEPC said in a release.
According to the apex engineering exports organisation, the exports for the first two months of the current financial year (April-May 2014) have shown a drop of 23.49 per cent to USD 28.65 million from USD 37.49 million.
“There is a clear negative growth of our exports to Iraq. When the country is in the middle of war, it is understandable that the economic activity has gone in for complete disarray. Moreover, the engineering items are not of day-to-day use for the Iraqi people,” EEPC Chairman, Anupam Shah said.
He said in the midst of full scale war between the government and the militants, not only the logistics of shipments get disrupted but also the entire payment system gets halted.
“In this scenario, I do not think our exporters are left with much confidence to do business there” Shah added.
Even before the war had escalated into full scale, engineering exports to Iraq had started decelerating. From USD 594 million in 2012-13, the engineering shipments saw a sharp decline to USD to 326 million in 2013-14.
The EEPC Chairman said while the war is being fought in Iraq, the confidence to do business in the entire Middle East is touching a new low. “Unfortunately, the geo-political situation in the Middle East, which is such an area of strategic interest to India’s business and economy, has turned negative”.
Iron and steel, electricals and automobiles have been the main items of export to Iraq from India. (KNN/ES)
“Engineering exports dropped sharply to mere USD 9.14 million in May 2014 from USD 20 million a year ago,” EEPC said in a release.
According to the apex engineering exports organisation, the exports for the first two months of the current financial year (April-May 2014) have shown a drop of 23.49 per cent to USD 28.65 million from USD 37.49 million.
“There is a clear negative growth of our exports to Iraq. When the country is in the middle of war, it is understandable that the economic activity has gone in for complete disarray. Moreover, the engineering items are not of day-to-day use for the Iraqi people,” EEPC Chairman, Anupam Shah said.
He said in the midst of full scale war between the government and the militants, not only the logistics of shipments get disrupted but also the entire payment system gets halted.
“In this scenario, I do not think our exporters are left with much confidence to do business there” Shah added.
Even before the war had escalated into full scale, engineering exports to Iraq had started decelerating. From USD 594 million in 2012-13, the engineering shipments saw a sharp decline to USD to 326 million in 2013-14.
The EEPC Chairman said while the war is being fought in Iraq, the confidence to do business in the entire Middle East is touching a new low. “Unfortunately, the geo-political situation in the Middle East, which is such an area of strategic interest to India’s business and economy, has turned negative”.
Iron and steel, electricals and automobiles have been the main items of export to Iraq from India. (KNN/ES)
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