Engineering exports likely to see a new high this financial year: Teaotia
The Dollar Business Bureau
Commerce Secretary Rita Teaotia said on Thursday that engineering exports from India, which have already on a healthy growth trajectory, are likely to witness a ‘new high’ in the ongoing fiscal.
Exports from the engineering sector have reached $62 billion, recording a growth of around 22% during the period April-January of 2017-18.
“We are confident that, the exports will see a new high this financial year,” Teaotia said, while speaking at the inauguration of India Engineering Sourcing Show (IESS) organised by Engineering Export Promotion Council (EEPC) of India in Chennai.
Commerce Secretary said the shipments to developed nations are increasing at a rapid pace. Exports to Europe and North America account for around 40% of the overall exports from engineering sector.
The initiatives taken by the Government such as Make in India, Digital India and Start Up India would further enhance the growth of industries in the country, she added.
Stressing on the importance of services sector, Teaotia said that there is need to recalibrate the traditional approach of manufacturing-led development.
“The boundaries between manufacturing and services are "increasingly blurred, requiring us to recalibrate our traditional model of manufacturing led development,” she said.
The services sector is highly important for improving competitiveness of the manufacturing sector and also contributes significantly in value addition of a product, she added.
Commerce Secretary further said the global mega trends like Industry 4.0, rise of shared economy and changing dynamics in the global value chain are presenting opportunities as well as challenges to the country.
“Long-term enablers, focussing on creating jobs by harnessing these global mega trends and business models at the intersection of services in manufacturing will be key to future development,” she said.
Engineering exports’ share in the country's overall shipments has grown to 23.6% in the fiscal of 2016-17 from 18.2% in 2009-10.