India Offers Best Location For Manufacturing

New Delhi, January 21: | Updated: Jan 22 2003, 05:30am hrs
Indias emergence as the hub of information technology along with a huge domestic market offers the best location for the relocation of manufacturing base/sub-contracting by engineering multinationals. This was indicated by SN Menon, additional commerce secretary, while inaugurating a Euro-India conference on Sub-contracting Collaboration in Delhi on Tuesday. The function was organised by the engineering export promotion council (EEPC).

EEPC chairman Satish Dhanda was present along with several European and Indian delegates, said an official release.

Mr Menon said EU accounted for more than 21 per cent of Indias total engineering products with the United Kingdom, Germany and Italy constituting more than 65 per cent share of it. Indias bilateral trade with Europe is around $25 billion which is more than 27 per cent of Indias total foreign trade.

He mentioned various outward-looking policy initiatives taken by the government which included a liberal import policy, a low tariff regime on capital goods and raw materials, an attractive foreign investment and technology regime and added that it had a positive effect on strengthening the Indian manufacturing and sub-contracting sectors.

The European market for sub-contracting is estimated to be around Euro 400 billion per annum.

Mr Menon asked Indian sub-contractors to take advantage of this enormous market.