The Hindu Business Line : EEPC pegs export target at $11.5 b

THE Engineering Export Promotion Council (EEPC) has fixed a target of $11.5 billion for the current financial year, indicating a 15 per cent growth over the 2003-04 achievement of $10 billion.

During 2002-03, engineering exports crossed the $10-billion mark, recording a growth of over 28 per cent over the Rs 770 crore export in the previous year. This was against an overall export growth of 16.37 per cent for the year.

EEPC also plans to bring out a strategy paper to achieve 15 per cent engineering export growth in the next 5 years on a sustained basis.

Briefing newspersons on EEPC's plans and programmes for the current year, the new Chairman of the council, Mr Rakesh Shah, said engineering, as the most vibrant sector of world economy, contributed nearly 30 per cent to world trade. He informed that EEPC has planned to prepare a medium export strategy to face the ever increasing international competition, especially from China, and for this, will soon be commissioning a comprehensive study to provide an overview of the global engineering exports scenario.

He said the council was planning to entrust the strategy paper project to a top national or international consultant. The study, expected to be completed within the next six months, would go much beyond a mere SWOT analysis, and would concentrate on matching focus products with focus markets, essentially to take engineering exports to a new international plane.

Mr Shah said the council was also planning to soon open a dedicated India Mart in Chicago (for warehousing Indian engineering goods), which would function as a warehouse-cum-display centre for export items aimed at the US markets. The project is said to cost Rs 2.42 crore, for which Rs 1.45 crore would come by way of a Government under the MAI (Market Access Initiative) scheme. The first instalment of Rs 61 lakh has already been received by EEPC.

Giving some details of his priority work agenda on assuming charge of the council, Mr Shah said his first task would be to meet the new Finance Minister, Mr P.Chidambaram, soon to take some of the burning issues plaguing the export sector, particularly engineering exports. Besides the DEPB scheme, which would go away from April 1, 2005, as it was not WTO compatible, some of the issues to be taken up at the ministerial level include phase-out of income-tax exemption for export profits under Section 80HHC, 80 HHB and 80O of the Act, supply of key raw materials, such as steel and pig iron and their spiralling prices, export finance and need for an outsourcing package for the sector to avoid procedural hassles in bringing in plant & machinery, technical knowhow, training of people etc.

Explaining the outsourcing package concept, he said in developed countries, this as becoming popular. The manufacturers in these countries are looking for partners, especially in India, who can take undertake manufacturing under their (foreign partner's) technology and existing equipment. This will provide a ready market without the problem of brand name, and also help domestic consumers in getting quality products at affordable prices.

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