Chennai, Jan 29 (KNN) The Engineering Exports Promotion Council (EEPC) has expressed growing concerns over the deceleration of engineering exports from India.

Despite setting an ambitious target of USD 1.5 trillion in engineering exports by 2047, the council acknowledges that achieving the intermediate goal of USD 300 billion by 2030 seems challenging given the current export rate.

The EEPC's vision document outlined an aggressive growth plan, aiming for an 8-10 per cent annual growth to reach the USD 1.5 trillion target by 2047.

However, Rakesh Shah, Chairman of Trade Promotions at EEPC, voiced reservations, noting the unforeseen challenges in meeting even the USD 300 billion target.

Shah highlighted the impact of the Red Sea issue, causing increased transit times and doubled costs, posing a significant logistical challenge for Indian exporters.

While India experienced a surge in engineering exports during the COVID era, registering around USD 69.5 billion from April to November 2023, there has been a noticeable slowdown.

Comparatively, the exports for 2022-23 stood at USD 107 billion, with the proportionate exports till November 2023 falling short by USD 12.5 billion.

Shah emphasised the need for India to explore non-traditional markets like Africa and Oceana, where it currently lacks a substantial market share.

He suggested that Indian technology is well-suited for these developing regions.

Despite a commendable 140 per cent growth in exports to Russia, logistical challenges arising from the Ukraine war are impeding further progress.

As the majority of the Indian industry is low to medium technology-oriented, Shah emphasised the importance of focusing on value-added items.

With a slowdown observed in the US and Europe, there is a corresponding demand-side slump affecting India's engineering exports.

Addressing these challenges and diversifying to untapped markets may be crucial for India's engineering sector to regain momentum.

(KNN Bureau)