FTAs with Latin American, African nations will amplify engg exports
The paper stressed on the importance of expanding market access and reducing risks associated with economic uncertainties, EEPC said in a statement.
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KOLKATA: The Engineering Export Promotion Council (EEPC) India has released a strategy paper, urging the country to pursue new free trade agreements with Latin American and African nations to boost engineering shipments.
The paper stressed on the importance of expanding market access and reducing risks associated with economic uncertainties, EEPC said in a statement.
At present, around 40 countries account for over 87 per cent of India’s engineering exports
“It is quite crucial for India to explore new markets, especially in Latin American and African countries. Many of our competitors have already established FTAs with these countries and as a result, are having a competitive edge over us.
“FTAs with these countries can level the playing field, ensure fair market access and expand our exports,” said Arun Kumar Garodia, chairman, EEPC India.
The strategy paper also highlighted the impact of global economic trends on India’s engineering shipments.
With the world economy expected to slow down this financial year, India must strengthen its presence in Europe by implementing an FTA with the European Union to help expand the current market base, and mitigate the potential downturn in engineering exports, EEPC said.
The engineering sector is a significant contributor to India’s economy, accounting for 25 per cent of the country’s total exports, and is also the largest foreign exchange earner, officials said.
MSMEs play a crucial role in the sector, making for 35-40 per cent of total engineering exports and providing essential employment opportunities, they said.
However, most MSMEs face financial constraints and struggle to secure investments. To address these issues, the strategy paper recommended implementing an aggressive ‘SME Assistance Programme’ to support research and innovation.
EEPC also underscored the need for establishing a domestic shipping line, which would not only reduce trade costs, but decrease dependence on foreign shipping lines.