EEPC eyes ASEAN to tide over volatile global market

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The Engineering Export Promotion Council (EEPC) is banking on the ASEAN market to tide over the volatility in the global financial market.

While India's engineering export stood at $33 billion in 2007-08, exports to the ASEAN countries were almost 30% of that.

"ASEAN countries are natural market for us, especially during the subprime crisis in the US," said Rakesh Shah, chairman of the EEPC.

"Export of engineering goods from India is likely to touch $40 billion by this fiscal-end," said Shah.

"Volatility in the US market is creating hardship for us. While medium and small exporters have gone for hedging, micro exporters have not opted for that," he said.

Even today, our share in the US market is 20% and this is not likely to go down in near future. "Companies in the US are likely to continue outsourcing owing to recession," said MC Shah, former chairman of the EEPC.

"Combined export in Europe and the US is around is 40% of the total engineering export. It is difficult to increase export in Europe as countries there impose several non-tariff barriers," he said.

"We are looking at export growth in Indonesia, Thailand and Singapore," said Rakesh Shah. ASEAN countries import engineering goods worth $3.93 billion from India. Malaysia's share is 19% of that, which amounts to around $747.6 million. "Export to Malaysia is likely to double in the next three years," said Shah.