A resurgence in COVID-19 infections in Europe is a cause of worry for India’s engineering exporters; and could potentially impact their performance this fiscal as the European Union remains one of the top three markets for them, according to a leader of industry body EEPC India.
“The COVID-19 situation in Europe in the last 7-10 days is getting bad to worse; we are keeping fingers crossed. If we can reach our last year’s figures, we will happy,” former chairman of the engineering exporters body Rakesh Shah said on Tuesday.
Engineering exports from the country totalled $75.81 billion in 2019-20 and after a dismal show in the first quarter this fiscal, amid the raging pandemic and lockdown, was on a recovery path in the second quarter.
“It is reviving and we are looking at a positive situation in times to come,” he said, adding that engineering exports declined 29.4% in the first quarter ended June and increased 3.17% in the July-September quarter. In the first six months of the fiscal, the decline was 13.7%.
The EU is among the top three partners in India’s engineering trade constituting 17% of the exports. India’s engineering exports to the EU is about $14.24 billion. Though there was a drop in exports to the region in the COVID scenario, the market remains still promising, he said.
Along with other EEPC leaders, including chairman Mahesh Desai, Mr. Shah addressed the media virtually ahead of the inauguration of EEPC India’s ‘India Subcontracting Expo 2020’ for overseas buyers.
It is the first virtual exhibition by EEPC India and is a four-day event. Nearly 100 engineering exporters are showcasing their products and technologies to major buyers from Europe, including the U.K., seeking to bag manufacturing contracts. Engineering exports account for more than 25% of the country’s total merchandise exports, a release said.