New Delhi: The government on Thursday said it has set an ambitious target of $120-billion engineering exports by 2015 and emphasised on the need to align policies in that direction.
Commerce and Industry Minister Anand Sharma said the country’s engineering exports have already reached $40 billion and is expected to touch $50 billion by the end of the current financial year.
“We have remained mindful of the fact that we need to align government policies with the ambitious target of tripling India’s engineering exports of $120 billion by 2015,” Sharma said.
The minister was speaking at the Eco-Products International Fair 2011 and International Engineering Trade Fair in New Delhi.
According to the industry experts, the demand for engineering goods is increasing in the US and other markets such as Middle East. However, the demand is still fragile in Europe.
“If we look at the overall scenario of engineering exports, we are one of the fastest growing exports in the world at nearly 30%, well above the global average of 13%,” he added.
Out of India’s total engineering exports worth $32.5 billion in 2009-10, the US and EU accounted for about 65$ of the shipments.
To reduce dependence on traditional markets like the US and Europe, exporters are exploring new destinations in regions like South-East Asia and Latin America.
Engineering exports include heavy engineering goods, transport equipments, capital goods, other machinery/equipment and light engineering products such as castings, forgings and fasteners.
The minister also said that within the manufacturing sector, special focus should be paid to develop green technologies.
The market for green products is estimated at nearly $200 billion and is growing at 15% every year, he said.