The Hindu Business Line : EEPC aims to boost exports to $30 b by 2010

THE Engineering Export Promotion Council (EEPC) has chalked out a comprehensive strategy to double engineering exports to nearly $30 billion by 2009-10 from the present level of $14.9 billion, requiring a year-on-year growth of 15 per cent.

Addressing newspersons here today, Mr Rakesh Shah, Chairman, EEPC, said the target has been set on the basis of a Strategy Paper prepared by AF Ferguson, which was released by the Union Commerce Minister, Mr Kamal Nath, in New Delhi on Wednesday.

He said that exports of Indian engineering products have been growing at a healthy rate of over 20 per cent vis-à-vis the corresponding growth of around 6 per cent over the last decade. Mr Shah, however, said the share of India's engineering exports in world trade has remained low at $11.4 billion in 2003, compared to world imports of $2.8 trillion.

Mr Shah said a sustained 15 per cent growth in the next five years will help India to improve its share in world engineering exports to 0.79 per cent from the existing 0.46 per cent. He said the study would also enable EEPC to identify new markets and plan accordingly.

The study paper has recommended a focused approach in terms of identified thrust products and thrust markets, based on India's competitiveness, market features, trade blocks and associated features, strategic advantages, supply capacities etc.

The Ferguson study, according to the EEPC chief, has particularly highlighted the huge opportunities in the Asean market, where nearly 75 per cent of the trade was accounted for by imports from outside the region, with currently a negligible market share for Indian engineering products.

Mr Shah clarified that though the potential for much higher engineering exports from India to the identified markets existed, constraints in areas such as infrastructure, raw materials supply, power and HR availability have actually warranted a modest growth target of 15 per cent.

He felt even for meeting this export target, there would be a need to de-bottleneck and significantly enhance the existing infrastructure support, quality of power, raw material supplies etc.

The study, while underlining the role of FDI in development of an export-oriented economy, has pointed out that its contribution for supplementing the required investments in support infrastructure cannot be under-estimated.

According to Mr Shah, the Strategy Paper also envisions an enhanced role for EEPC in terms of undertaking focused thrust product-market specific initiatives, collection and dissemination of market information, participation in large road shows and exhibitions and coordination with export councils and industry associations in export markets.

The council, he felt, should also assist SMEs in their export efforts etc to facilitate achievement of the set target of doubling exports of engineering products from India in the next five years.

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