Engineering exports plunge by 22 pc

August 13, 2009 11:39 am

Engineering exports plunged by about 22 per cent to $2.8 billion in May, compared to the same month last year as demand fell in major global markets. Although the magnitude of decline has been arrested during May, exporters have no hope of recovery in demand in international market in coming months.
 
Engineering exports fell by 26 per cent in April 2009, according to the Engineering Export Promotion Council. Its Chairman Aman Chadha said, “Engineering exports have a long gestation period and we get orders three to four months in advance. We had orders till March and now very few orders have been renewed.”
 
Exporters are pinning their hopes on revival of demand in major markets due to large stimulus packages. However, at best only tentative revival signs could be visible in select export destinations. “We see a demand improvement only after the first six months of the current fiscal as global economies are likely to revive by this time,” said Chadha.