The Hindu Business Line : EEPC appoints A.F. Ferguson to chart out medium-term strategy

ENCOURAGED by the $10-billion-plus engineering goods export recorded during 2003-04, the Engineering Export Promotion Council (EEPC) has commissioned A.F. Ferguson & Co to prepare a five-year medium-term strategy paper for engineering exports.

Mr Rakesh Shah, Chairman, EEPC, told Business Line that the strategy paper would broadly outline the role of the Government, the exporting community and the council in the interest of augmenting engineering exports, in keeping with the rising growth trend.

He said the study approach was an EEPC initiative, and the paper would be submitted to the Government in three to four months. EEPC targets a steady 15 per cent annual growth to touch the targeted $20 billion by 2009.

Mr Shah said the initiative was being taken up to make Indian engineering exports more competitive in the scenario of more FTAs (free trade agreements) and RTAs (regional trade agreements) emerging and the new world economic order under the World Trade Organisation. Incidentally, EEPC will complete 50 years on September 21, and a series of programmes have been lined up.

On the broad terms of reference for the strategy paper, Mr Shah said the objective was to achieve 15 per cent growth, with focus on the existing product/market, new product/existing market and new product/new market.

Besides a general trend analysis of engineering exports and the identification of focus product/markets, the study will cover areas such as regional trading arrangements, policy matters and infrastructure facilities - both current and future trends.

The recommendations of the study, besides a short-term and long-term action plan, may include a detailed layout of the target, product-thrust country matrix, India's share in global import in each thrust country for each thrust product, role of foreign offices, their utility and present role of the Central/State Governments, and expected role with respect to infrastructure facilities and policy matters. Mr Shah clarified that although there had been a significant growth in engineering exports during 2003-04 to the extent of 28 per cent in dollar terms, the sector had still not been able to achieve a 1 per cent share of global trade.

The sector's contribution to the country's overall exports is 16 per cent, and with minimal import content, it was the second largest net foreign exchange earner after gems and jewellery. He said the council had fixed a target of $12 billion for 2004-05.

The EEPC chief also reiterated his stand on issues such as revival of I-T benefit under 80HHC, introduction of an alternative to DEPB, immediate implementation of VAT refund in line with terminal excise duty, stability in steel prices with uninterrupted supply by the main and secondary producers as well as immediate implementation of the Gold Card Scheme for exporters. He was concerned over the new surcharge levied on exporters by the Chennai port authorities.

Following a detailed meeting recently with leading exporters of the southern region in Chennai, Mr Shah complimented the region for its performance in pushing engineering exports (contributes 18 per cent to overall exports). He said the council was opening another sub-regional office in Hyderabad, apart from Bangalore, for enabling exporters of the region to have easy access to the council.

EEPC is organising its Indiatech Exhibition in Almaty, Kazakhstan, from September 3, where 70 leading engineering companies from India will showcase a variety of engineering products.

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