New Delhi - 27-11-2014: The ensuing Foreign Trade Policy will address the exporters concerns of slowdown in several key markets like European Union and Japan even as a lot of policy developments and diversification measures are being worked out to deal with the unveiling challenges of merchandise exports, Commerce Secretary Shri Rajeev Kher said today . Releasing Engineering Export Promotion Council (EEPC)s India Strategy Paper for Engineering Exports, Shri Kher said while a steep fall in engineering exports in October, after a good run in earlier months, came as a shocker to him, there is no room for pessimism as a lot of policy developments are happening. He said the Government is aware of the challenges being faced by the exporters in the backdrop of slowdown in EU, Japan and China, but the policy measures would target new markets like Africa, South East Asia and CIS countries. Shri Kher emphasised on the value chain movement by exporters for staying competitive in the global markets. In this context, the liberalisation in the FDI policies underway would help exporters move up the value chain and help them gain scaling essential for the international markets. According to the EEPC India Strategy Paper, India will need to ride on the back of the FDI inflows along with high-end technology particularly from large enterprises to boost engineering exports to just about double the countrys engineering exports to USD 126 billion by 2018-19. India engineering exports in the year FY 2018-19 will remain between US$86 billion to US$126 billion from US$62 billion in 2014. While the US$126 Bn aspiration might be considered aggressive in light of the current economic scenario but a number of factors give us reason to think otherwise, the EEPC India paper done by consultancy major KPMG , pointed out.
Large foreign enterprises have important role to play in the development of innovation hubs in the nation. Often these enterprises become champions of innovation like Hewlett-Packard, Lockheed, and Google in the USA and Samsung and LG in South Korea. In order to create strong innovation hubs, the Government may attract large innovation oriented engineering firms to India, the paper said. The India Engineering Sourcing Show (IESS), scheduled during December 16-18 in Mumbai will focus on the way Indian firms are adapting to technology and moving up the value chain. The paper noted with concern that no significant reshuffle in terms of skill and technology intensity is observed in the Indian engineering exports basket over the years and India continues to be an exporter of products of low and medium skill and technology.
Sharing these concerns, EEPC India Chairman Mr Anupam Shah said, Capabilities which are required to be developed are easy access to raw materials, cheaper raw materials, technology up -gradation and product innovation, lower logistic cost and better infrastructure, skilled workforce and favourable terms of trade to increase. The EEPC India-KPMG paper said India imports more high skill and technology intensive engineering products from Germany and China than it exports to these nations. Chinas high skill and technology intensive exports to India are approximately fifteen times larger than Indias high skill exports to China.