Engineering exports from the country registered a whopping 94 percent higher growth in the first quarter of the current fiscal 2011-12 to USD 23 billion over the corresponding period last year.
"In the first quarter of this fiscal, the growth has been phenomenally good. It is healthy growth that we have witnessed…," Engineering Export Promotion Council (EEPC), Aman Chadha told SME Times, while cautioning that the recent downgrade in US credit rating might hit the engineering sector in future.
Opining further, Chadha said, "I expect engineering to start tapering off shortly. We know that there are problems happening in the US. The EU is also observing crisis. I do not know how long we will be able to maintain this kind of phenomenal growth."
He said the target for India’s engineering exports in the current fiscal is around USD 70 billion.
When asked whether they would be able to achieve the target by the year-end, Chadha said, "I think we can achieve it. As of now we are on track as the growth in the first quarter has been USD 23 billion, probably we may cross USD 100 billion if the global situation is smooth."
He said demand has picked up enormously from the alternative destinations such as Latin America, Africa, Brazil, Columbia, Asean regions, China, etc.
"The alternative markets are performing well at the moment. I hope we are able to cope up and sustain growth by focusing more in these regions." Chadha added.
He also urged the government to maintain a low interest rate so that exporters can avail bank credit at ease. "We have asked the government several times not to give us any incentives