Calcutta, May 18: Engineering exports are likely to grow in India with the new government set to take bold decisions that will boost the sector, the Engineering Export Promotion Council (EEPC) said.
A clear and decisive mandate in favour of the BJP-NDA-led government at the Centre will work as a major fillip to the manufacturing sector, which is crucial for exports.
“We expect that the Narendra Modi-led government will be able to take bold decisions regarding labour reforms which will benefit the Indian workforce and create employment. We also expect a significant improvement in the quality of governance that will in turn reduce transaction cost for Indian exporters and make them competitive in the world,” Anupam Shah, chairman of the EEPC, said.
The EEPC is an apex body in charge of promotion of engineering goods, products and services from India.
Shah said Indian exports, with 45 per cent contributions from MSMEs (micro, small and medium enterprises), have been languishing in the past few years.
The apex body is also awaiting the new foreign trade policy to provide them with a clear direction.
“Right now, it is difficult for exporters to price products. Even hedging has become a difficult proposition. It will be good to know the outlines and targets set by the new foreign trade policy,” said Suranjan Gupta, additional executive director, EEPC India.
“Interest rates are high and unless it comes down, it will not help manufacturing. Engineering exports account for 20 per cent of total Indian exports,” he said.