Analysts urge engineering exporters to tap potential business opportunities in Middle Eastern and Latin American markets, besides the traditional ones in the US and Europe  Gradual demand revival in the US market brought cheers to engineering exporters in the country. However, here is a word of caution, although the month of June witnessed a surge in engineering exports by about 90% on a year-on-year basis, engineering exporters must keep their fingers crossed as industry insiders opine that it is advisable to tread with caution. Engineering exports stood at US$5.1 billion in June 2010, as against US$3.33 billion in June 2009.In this context, a senior official of the Engineering Export Promotion Council (EEPC), who did not wish to be named, over a telephonic interaction with a Machinist360 correspondent, says, “The surge in exports has been due to the low base effect. A chunk of the country’s engineering exports head towards the US and Europe. However, demand contraction has been witnessed in the European countries owing to the Eurozone crisis. Therefore, it might be too early to rejoice the rise in engineering exports recorded in the month of June 2010.”
Need to roll out better products to sustain exports
Analysts opine that only way to sustain exports is by rolling out better quality products by encouraging R&D activities in the sector. In this context, Manoj Jain, managing director of Hamilton Electronics Pvt Ltd, a mid-sized manufacturer and exporter of magnetic switches in New Delhi, says, “Products manufactured by Indian engineering firms have always been favoured among other nations, particularly in the West because of their superior performance. Since India boasts of low manufacturing costs, importing products from India has always been profitable for countries in the West. However, with cut throat competition coming from other nations like China, it is important for Indian firms to bring in innovation in their product portfolio.”
Analysts also believe that engineering exporters should diversify their market and look to tap opportunities in markets in the Middle East, Latin America etc, which hold immense business potential.
Arup Choudhury |
