The Engineering Export Promotion Council (EEPC) said that high imports of engineering goods besides crude oil and gold, are adding substantially to the country's current account deficit (CAD). India’s CAD widened to a record high of $88 billion or 4.8 percent of the GDP in the previous fiscal from $78.2 billion in FY12, about 4.2 percent of the GDP. India’s engineering import-export gap remained negative at $17 billion in FY13, despite the fact that engineering goods exports constitute around one-fourth of the country's total merchandise shipments followed by gems and jewellery, textiles and chemicals. During April to July period, engineering exports declined by 5.77 percent with total consignments of $18.03 billion for the four months against $19.14 billion in the corresponding period in the previous fiscal.
EEPC said there are no domestic alternatives available to reduce the imports of crude oil and gold, however, India can contain the imports of engineering goods by giving a boost to the capital goods sector. Referring to the rising engineering items imports, EEPC said that there are at least 79 tariff lines of different engineering products such as automotive engines, which have shown an annual compound average growth as high as 35 percent in some cases. Imports of engines of cylinder capacity greater than 250 CC were only $114 million in 2005-06, which has now crossed $1 billion, it added.
By adding further, EEPC said that India should lower the manufacturing/engineering trade deficit by promoting the production of capital goods sector in the country and therefore recommended the government to immediately launch a Technical Upgradation Scheme.
EEPC said there are no domestic alternatives available to reduce the imports of crude oil and gold, however, India can contain the imports of engineering goods by giving a boost to the capital goods sector. Referring to the rising engineering items imports, EEPC said that there are at least 79 tariff lines of different engineering products such as automotive engines, which have shown an annual compound average growth as high as 35 percent in some cases. Imports of engines of cylinder capacity greater than 250 CC were only $114 million in 2005-06, which has now crossed $1 billion, it added.
By adding further, EEPC said that India should lower the manufacturing/engineering trade deficit by promoting the production of capital goods sector in the country and therefore recommended the government to immediately launch a Technical Upgradation Scheme.
No comments:
Post a Comment