Engineering goods exports increased eight times in last decade

Posted By: Religare
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Engineering goods exports increased
Gone are the days when Indian exports were majorly consisting of the Primary products. In this new era, where peoples skill set has increased tremendously has led to the increase in the Indian made Engineering goods in the world market. This year it was engineering goods that include metal products, industrial machinery, auto and its parts etc., which topped the list of Indian Exports. 

Along with the increase in skill set, major credit goes to the low wages in the country. Despite of the fact that China is also present which is known for its cheapest goods, Indian engineering goods found new markets. Markets for the Indian engineering goods are ranging from the developing nations of Africa to the European markets that are very quality conscious.

One of the sectors that are hugely responsible for this is Automobile sector. Companies like Nissan came in India to sell their cars but found India an excellent place to build cars and export them from India. In May 2010, it inaugurated a plant in Chennai to export Indian made Micra to countries like Europe, Middle - East and Africa.

Yatin Shah, managing director, Precision Camshafts says "The rest of the world has begun to see India as a good destination for engineering goods where we have scale of operations as well as niche and proprietary products".

View: There are two reasons for this. First there is a a case of low base effect. Only when the Indian economy saw librelization in 1990s did the new thrust of making mega-engineering industries came. Then taking two decades for creating world-class engineering companies is an understood part.

Then there is also a case where foreign companies set up their manufacturing hub in India. A case in point, Mitsubishi was exporting more of their car model named, 'Lancer' to the world from its India plant than it was consuming in the country.   

Read more about: economy, engineering, india africa, europe
Story first published: Wednesday, June 8, 2011, 14:30 [IST]
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