EEPC India Presents 42nd National Awards for Export Excellence Engineering Exports 21% to the Total Exports: Scindia.

Press Information Bureau

Government of India

Ministry of Commerce & Industry

20-December-2011 19:04 IST

EEPC India Presents 42nd National Awards for Export Excellence Engineering Exports 21% to the Total Exports: Scindia

Shri Jyotiraditya Scindia, the Minister of State for Commerce & Industry, presented the 42nd national award for export excellence, here today. Speaking on the occasion Shri Scindia said, “The engineering & chemical industries are the way to the future. Within engineering, we need to move up the value chain both in terms of domestic production and exports. Engineering exports now accounts for the 21% of our total exports. Increasing exports of engineering sector has to be a major goal in any strategy for doubling exports in three years”.

The Minister during his speech remarked that, trading performance especially in exports depends on an economy’s openness to competition on the world market. With this in mind, India has launched important structural reforms to liberalize the market and attract FDI, which are the drivers of economic growth.

While addressing the winners Shri Scindia said that, given our tremendous capabilities in the engineering sector, we must also look forward to widen our markets for the wide range of engineering products made in India. He also outlined the Special Focus Market Scheme, which has been specially designed for this purpose. The Government has emphasized on the role of diversification for future growth of Indian engineering exports along with technological advancement and product innovation. Shri Scindia said, “We must also look forward to widen our markets for the wide range of engineering products made in India. He also outlined the Special Focus Market Scheme, which has been specially designed for this purpose”.

While re-emphasizing the role of Indian engineering industry, Shri Scindia said that it is a dynamic segment of India’s manufacturing sector with well-developed and diversified industrial machinery and capital base, capable of manufacturing the entire range of equipments. He also reitereated on Government’s commitment to do what is possible within the realms of policy. He said that creating an enabling environment, lowering transaction costs and upgrading port infrastructure remain the corner stone of a successful export promotion strategy and we will do everything possible to give our exporters the competitive edge. The Minister observed that trade facilitation is a key determinant of the country’s competitiveness in the international market. We constitute the task force on transaction cost in October 2009 to assess the procedural bottlenecks affecting India’s exports & imports. I am happy to inform that on February 8, 2011 we released the action taken report on the transaction cost issues, which have ensured benefits worth Rs. 2100 crores to the exporters in perpetuity. The second phase of work is in progress for the further reduction of the transaction costs.

The Minister said that Indeed, 2009-10, was an extremely difficult year in the aftermath of the sub-prime crisis that enveloped the developed world, particularly, the US and the EU, which are the two big markets for Indian engineering exports. India’s engineering exports declined by over 19% to USD 32.5 billion in 2009-10 largely as a consequence of global banking crisis. India’s total exports also declined by 3.53% to USD 179 billion as did India’s total imports by 5.05% to USD 288 billion. Clearly, therefore, the Awards Winners in 2009-10 in the engineering sector are true champions and have the ability to take on the most difficult challenges that the global environment can offer.

In his welcome address, Mr Aman Chadha, Chairman, EEPC INDIA said that all the member exporters who have won an award belong to a cross-section of the engineering industry with different scales of operations and have attained remarkable export performance under tremendous odds. They have circumvented innumerable challenges, vagaries of the global markets and a host of uncertainties.

While welcoming the recently announced amendments to Foreign Trade Policy, Mr. Chadha said that the new measures will help to assuage the negative sentiments. He said that the Policy has many ingredients that can enable the exporting community to withstand the present depressing demand in global markets.

At the Award Function, Shri Scindia presented Awards to 98 companies who were honoured with specially made trophies and certificates for their excellent export performance in the year 2009-10. Shri Sumanta Chaudhuri, Joint Secretary, Department of Commerce and other senior official from various ministries and dignitaries from the diplomatic community also attended the event.

Engineering industry is one of the most employment intensive sector in the country. According to the latest available data in Annual Survey of Industries, 2007-08, out of the 25 major industry groups at two digit level of NIC-2004 classification, engineering industry accounts for 8 groups. These 8 engineering groups represent 25.98% of total factories in India, 34.91% of invested capital, 28.86% of total persons engaged, 36.35% of total industrial gross output and 40.83% of the total Net Value added. To top it all, engineering exports accounts for over 20% of India’s total exports.

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