Engineering Exports Promotion Council on Sunday said shipments are expected to sustain the growth momentum in the current financial year despite challenges of cost pressure and emerging geopolitical tension due to the Russia-Ukraine crisis.
“Engineering goods exports topped USD 111 billion in FY’22 and are expected to sustain the growth momentum in the current fiscal too despite challenges emerging out of global geopolitical tensions,” EEPC chairman Mahesh Desai said.
He also stated that volatility in commodity prices, supply chain disruptions and a possible change in world political order would certainly have an impact on trade and the economy.
“Some of the leading rating agencies have in the past few weeks lowered India’s GDP forecast. So clearly, the impact would be felt but it should not be severe,” Desai said.
Among the challenges faced by the industry, high raw material costs and freight charges are pain points for quite some time now, he said.
“But at the same time, we also see new opportunities coming. Roll-out of the India-UAE and India-Australia free trade pacts, and other bilateral agreements in the pipeline would spur exports. The government has also been prompt in dealing with any emerging issue and hence we are confident of chasing a higher export target this year too,” he added.