|Anupam Shah in Calcutta
on Tuesday. Picture by
Kishor Roy Chowdhury
Calcutta, Oct. 1: Growth in engineering exports from India may contract in 2013-14, industry body EEPC has warned.
EEPC India today said the cut in duty drawback rates, lack of liquidity for manufacturers and uncertainty over the partial shutdown by the US government were likely to drag down the growth rate.
The finance ministry last month had announced a 26-30 per cent cut in duty drawback rates. Duty drawback is the refund of duties on inputs imported for export items.
“There was a distinct possibility that engineering exports could have grown by 15-20 per cent to over $56.7 billion in 2012-13 if the duty drawback rates were not drastically reduced and the rupee remained in the range of Rs 60-65 to the dollar,” said Anupam Shah, chairman of EEPC.
“In light of these issues and with uncertainty looming because of partial US shutdown, a 8-10 per cent growth now would be a great achievement,” Shah said.
He said if the shutdown issue was not resolved soon, it would impact total exports to the US, including engineering goods, which is the largest export market for such items.