Upward trend in exports of engineering products from India would support jobs and growth: EEPC India

Calcutta, Jul 3 (UNI) With demand from major markets remaining robust, exports of engineering products from India continued their upward trend and registered a 52.61% increase in June 2021 compared to at the same time last year, according to EEPC India.

According to preliminary official data, India’s merchandise exports in June 2021 amounted to USD 32.46 billion, an increase of 47.34 pc from USD 22.03 billion in June 2020 and an increase of 29.7 pc compared to 25.03 billion USD in June 2019.

EEPC India President Mahesh Desai said the growth was notable as the second wave of the pandemic posed downside risks due to logistics and manpower issues.

“Not only are these risks gone, but the government has also put in place economic aid measures that would certainly boost economic growth,” Desai said.

He said the strong rebound in exports of engineering products would support growth and jobs.

Among the concerns faced by exporters of engineering products, especially MSMEs, he pointed to the high ocean freight rates and high prices of primary steel weighing on the sector.

Welcoming the stimulus package announced by the government and the extension of the interest subsidy scheme for exporters, Desai hoped that exports of engineered products would remain positive under the current fiscal year.

“The stimulus package would strengthen sentiment and stimulate domestic demand which has been subdued.

The additional credit guarantee of Rs 1.5 lakh crore would help the MSME sector to close the cash flow gap. Export insurance coverage would give new impetus to the sector, ”said the President of EEPC India.

Desai said the economic outlook would improve as vaccination coverage expands and economic relief measures continue.


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