EEPC Bullish on Engineering Exports, Looking Forward to New RoDTEP Rates

The growth in outbound shipments has been robust in the last few months and the outlook remains positive for the current year but rising cost of key raw materials especially steel is an area of concern, said EEPC India Chairman Mr Mahesh Desai.

As expected, the value of engineering goods exports jumped 53% to US$ 8.64 billion in May, 2021 as against US$ 5.65 billion in the corresponding month last year primarily due to low base effect and increasing demand from key markets.

"Soaring prices of various metals is a big challenge for the engineering goods manufacturers which were badly affected by the Coronavirus outbreak and the subsequent lockdowns," he said.

While hoping that the rates for the export promotion scheme RoDTEP would be announced shortly, the EEPC India Chairman expects the government to provide more targeted support as suggested by the RBI.

"The efforts must be made now to minimise the impact of pandemic on trade and business as protecting livelihood is no less important than lives. The plans should be in place to ensure goods movement, especially export consignments, are not affected by lockdowns, night curfews or any other restrictions imposed by states to prevent the spread of virus," Mr Desai said.