3 days Ago By The Hans India
Kolkata: Engineering Exports Promotion Council (EEPC) on Wednesday feared that the additional duties imposed by the US on iron & steel and auto components are set to hit the engineering exports sector with a potential annual drop of $4billion to $5 bn in shipments to that country. EEPC India Chairman Pankaj Chadha said in a statement that engineering exports during 2024-25, as per the trade data, had hit an all-time high of $116.67 billion, marking a significant increase from $109.
3 billion recorded in 2023-24. “The additional duties imposed by the US on iron & steel and auto components are set to hit the engineering exports sector. There could be a potential drop of $4 to $5 billion in engineering shipments to the US as a consequence of it,” Chadha said.
Besides, competition from China in other markets will emerge vehemently as they will try to push their products there with the aim to de-risk the US market, the EEPC said. The council said competition in markets like Latin America, Central America, the Middle East and Africa is set to heat up as exporters seek to explore new markets. “This could dent the profit margins.
Support from the government is needed in terms of fiscal incentives and help in market access,” the council said. EEPC said that the global trade and economic scenario remains volatile and uncertain. The world is facing massive disruption, it said.
In March last fiscal, the value of engineering goods exports declined nearly four per cent year-on-year to $10.82 billion compared to $11.27 billion in the similar month previous period.
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