EEPC India urges supportive measures to engineering industry

Mumbai (PTI): EEPC India, the apex body of engineering exporters from India, has urged the government to provide supportive measures for Micro, Small and Medium Enterprises (MSMEs) sector, a top industry official said here.

"In the present uncertain market scenario, engineering exporters require support measures, specially the MSME state in order to survive in these hostile times," EEPC India Chairman Aman Chadha said on the occasion of EEPC India's Western region Award Presentation Function for 2006-07 here.

He elaborated that the hostility in the global trading environment is now affecting engineering sector too which is now facing considerable demand problem in global markets and are under acute distress.

Mr. Chadha noted that certain segments of Indian engineering industry such as nand tools, bicycle and parts, castings, auto components, and similar other low value added engineering units are in no way different from the textile and leather sector, in terms of their shrinkage in demand leading to loss of output and employment.

However, the government has consciously refrained from supporting the engineering sector as there is a belief that engineering exports will pull through, Mr. Chadha said.

Mr. Chadha said that demand for engineering products has decreased drastically, thus considerably affecting Indian engineering exporting community. The extension of Focus Market Scheme will help exporters in maintaining their traditional markets to some extent, he noted.

With the $10.6 billion engineering exports, the western region of the country had a share of almost 40 per cent of India's total engineering exports of $26.49 billion in the fiscal 2007.

Its a matter of joy that this share has gone up to 41 per cent in FY'08 with exports of $13.6 billion in FY'08 out of total engineering exports of $33.15 billion in the year.

Mr. Chadha also pointed out that circumstances in 2006-07 were more conducive for exports. The exchange rate was far more benign than in the year FY'08 and in early part of FY'09. Further, the raw material prices and freight rates were less volatile as compared to subsequent fiscal years.

Thus, the remarkable growth in engineering exports witnessed during the fiscal year FY'07 is an indicator that an "enabling environment" can do immense good to boost the export capabilities especially of those belonging to micro, small and medium scale sector.

On the occasion, 85 companies from the region were awarded for their excellent export performance.

The list included some of the leading names like Bharat Forge, Uttam Galva, KEC International, Bajaj Auto, Hilton Metal Forging, Jyoti Steel Industries, Aeroflex Industries and Finolex Cables.

On the occasion, Governor of Maharashtra S C Jamir highlighted the efforts made by the government to simplify the process of exports and improve the infrastructure for the same purpose.

He hoped and expressed confidence that "we will soon tide over the present crisis." He also requested the industry captains to continue to play their national role of creating employment in the country by enhancing productivity and efficiency and venturing out to new markets.

In his welcome speech, Nayan Shah, Regional Chairman, EEPC INDIA (Western Region) highlighted the key role played by EEPC India in promoting export and the cause of the exporting community by hosting overseas exhibitions, fielding trade delegations and organising buyer seller meets.

He said that world-wide recession and decrease in demand has badly affected Indian exporting community. Shah noted that Governments stimulus package is taking time to impact the economy and more such packages are required on consistent basis. The Council has also urged the Government for granting of Focus Market Scheme benefit to EU and North America, which so far attracted 40 per cent of India's engineering exports but are facing severe crisis at present.