"Costs of manufacturing (in China) is no more cheap the way it used to be, with their banking under stress and the pressure on the government to cut rebates.
"The Chinese firms are no more the top contenders for the global outsourcing. This gives Indian engineering sector an opportunity," EEPC India Chairman Anupam Shah said in a statement.
Engineering Export Promotion Council (EEPC) said be it an aero-space engineering firm in Germany or an instrumentation giant in Canada, world leaders in high-tech manufacturing are shifting focus to outsourcing their critical supplies to India.
It said that to encash this sentiment, the council is organising a mega event in Mumbai in January next year to show-case India's manufacturing prowess in high-tech items.
"The India Engineering Sourcing Show, with projected participation of world's top 300 buyers is billed as an international platform for clinching multi-million dollar deals," it said.
The four-day show will start from January 22.
The External Affairs Ministry is also being roped in for seeking larger participation through Indian missions in countries like Italy, Poland and Mexico.
The engineering sector has emerged as the largest contributor to India's total merchandise exports followed by gems and jewellery, textiles and chemicals.
The shipments are expected to reach US 63 billion in the current fiscal, it added. The US and Europe together account for over 60 per cent of India's total engineering exports.