Engineering exporters need support for survival

Engineering exporters are going through one of the most turbulent and trying times. Out of India's total merchandise export of $320billion, engineering sector contributes more than 25 per cent and is one of the biggest employment generators in country. Engineering exporters have to compete with China, Vietnam, Taiwan, Malaysia etc. and these countries have best of infrastructure, fast and cost efficient ports, competitive inland transportation cost, and substantial cash subsidies from government.

Unfortunately, despite being such an important sector, engineering exporters, who are now on the verge of losing sizeable portion of their business to other countries, leading to largescale layoffs and permanent closure of factories, did not find any place in government scheme of things. The current onslaught of unprecedented increase in all cost parameters if not controlled will completely derail the engineering sector. We were expecting something in the government's vision document for saving the biggest contributor to India's merchandise export basket.

-Sanjay Budhia, Managing Director, Patton International Ltd