Economy

Engineering goods exporters face lockdown heat in top markets

Our Bureau New Delhi | Updated on April 03, 2020 Published on April 03, 2020

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Most of the top destinations for engineering goods from India, including the US, the UAE and Germany, are in a state of a lockdown or under severe restrictions due to the Covid-19 outbreak, making the outlook for exports bleak, as per an analysis by an industry body.

“Of the top 25 markets, accounting for over 75 per cent of Indian engineering exports, most are in a state of a lockdown or under stringent restrictions due to the outbreak of the coronavirus,” the Engineering Export Promotion Council of India (EEPC) said.

The measures announced by the RBI and the Finance Minister to help the economy have to be topped up and made more inclusive to help the sector, the EEPC said in a statement. It added that the moratorium on debt repayment should be extended beyond three months, while loans should be restructured to help the sector deal with a cash crunch and pay wages.

Engineering goods are one of the top exported items from India and account for about one-fourth of total exports from the country.

Apart from the top three destinations, other important markets for engineering exports from India that are under various levels of lockdown are the UK, Bangladesh, Mexico and Singapore. There are widespread disruptions even in smaller markets, the EEPC said.

“While exports in March 2020 are expected to be severely impacted due to the global lockdowns, the April data is likely to be quite dismal as nations across the world are pushing hard on restrictions,” EEPC India Chairman Ravi Sehgal said.

In the April-February 2019-20 period, India’s exports of engineering items to the largest 25 markets were valued at $53.30 billion against total exports of $70.6 billion, according to EEPC.

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Published on April 03, 2020
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