EEPC recommends FTAs with Latin America, African nations to boost engineering exports

NEW DELHI : Pursuing new Free Trade Agreements ( F TA s ) w i t h e m e r g i n g countries in Latin America and Africa, a scheme to support MSMEs in research and innovation, setting up a domestic shipping line, and global branding of Indian products are among the key suggestionsinastrategypaperpreparedbyEEPCIndiato boost engineering exports and achieve the target of $300 billionby2030.

Union Minister for Commerce and Industry Minister Shri Piyush Goyal chaired a meeting this week in which EEPC India Chairman Arun Kumar Garodia discussed various recommendations in the strategy paper to boost India’sengineeringexports.

The strategy paper calls for greater market access especially in Africa and Latin America as they have the potential to become significant export markets for India. It has been noted that by expanding into non-traditional markets, the risk associated with economic uncertainties canbespreadout,reducingdependenceonafewmarkets.

Talking about the strategy paper, Garodia said that there are around 40 countries that currently account for over87%ofIndia’sengineeringexports.Thereforethereis a huge opportunity to explore new markets while expandingtheexistingbase.

“It is quite crucial for India to explore new markets, especially in Latin American and African countries. Many of our competitors have already established FTAs with these countries and as a result, are having a competitive edge over us. FTAs with these countries can level the playing field, ensure fair market access and expandourexports,”Garodiasaidinastatement.

Garodia said that given the current global economic trends, the world economy is expected to slow down this financial year and will impact engineering exports from Indiaasseeninthepastseveralmonths.

Among measures to expand the current market base, he suggested strengthening presence in Europe as a prioritybyimplementinganFTAwiththeEU.

Highlighting the importance of the engineering sector, Garodia said that the industry accounts for 25% of the country’stotalexportsandisthelargestforeignexchange earner. Notably, MSMEs account for 35-40% of total engineering exports and therefore are crucial job providers.

The strategy paper has highlighted that most MSMEs face financial constraints and struggle to secure investments It has recommended implementing an aggressive “SME Assistance Programme” to support researchandinnovationintheMSMEsector.

On the need for establishing a domestic shipping line, Garodia said that it would reduce trade costs, decrease dependence on foreign shipping lines and save huge amountsofvaluableforex.

He added that dedicated efforts in branding and marketing were essential for success in specific product categoriesandmarkets.