Chennai Raising the bar, India has set an aspirational target of USD 200 billion by 2025 for engineering exports, following a road map suggested by an EEPC India-Deloitte strategy paper, based on inputs from the Commerce Ministry and the industry.
The paper released at the ongoing International Engineering Sourcing Show (IESS) at Chennai, said that India can achieve a three-fold “aspirational” increase in its engineering exports y 2025, if concerted efforts are made by Government and industry.
Conducive ecosystem, branding and ensuring inputs at competitive prices would be the key factors for achieving the target, it said.
Releasing the paper on Friday, Commerce Secretary Anup Wadhawan said the Department of Commerce and EEPC would “quickly examine the road-map suggested by the strategy paper and make all possible efforts to achieve the identified potential”.
Engineering exports, which contribute 25 per cent of India’s total export basket are projected at USD 80-82 billion in the current financial year ending March 31, according to EEPC India Chairman Ravi Sehgal.
Mr Sehgal said the USD 200 billion target can be achieved if “we get our act together” in ensuring that the basic raw material — steel — is made available at affordable prices.
The strategy paper has identified areas such as product-market optimisation, eco-system development, promotion and branding, and competitive procurement of inputs for the ambitious goal.
However, export performance would also depend on several external factors like investment by industry, global macroeconomic scenario, competing nation’s performance, trade policies, and approach towards protectionism.
The paper said India is not a ‘leader’ in any product category and continues to be a ‘follower’ nation. The technology intensity of India’s engineering export portfolio has not changed significantly over the decade, and it still exports low- and medium-technology intensive engineering goods. However, technology trends across product categories and emergence of digital technologies in manufacturing are expected to significantly change the engineering exports landscape.