Order Pipeline Robust so Far but Omicron may cause some Slowdown, EEPC India

Engineering goods exports continued the high double-digit growth in December, 2021 and registered 38% year-on-year growth to US$ 38.4 billion. The sustained growth momentum demonstrates the sector is well on track to grow its market share in the global trade, said EEPC India Chairman Mr Mahesh Desai.

"While the order pipeline has been remarkably good we could see some slowdown in case Omicron disrupts the global supply chain. In recent weeks we have seen some signs of volatility and uncertainty due to the ongoing pandemic wave across the world but by putting suitable policy measures in place the government could provide cushion to the trade and business," Mr Desai said.

He called for urgent action on part of the government to calm down soaring raw material prices and reduce logistics cost.

"We hope that in the upcoming budget, the government will take appropriate measures to reduce the cost of primary steel, copper, aluminum and other raw materials. This will be a major relief for the sector which is dominated by MSMEs," Mr Desai said.

Some policy push now would keep the industry ready to take challenges in future and set higher exports targets next financial year, he added.