KOLKATA: The Engineering Export Promotion Council on Sunday said it is expected to maintain the pace of shipment growth in the current fiscal despite the challenges of cost pressures and emerging geopolitical tensions due to the Russia-Ukraine crisis.
Mahesh Desai, Chairman, EEPC said, “Engineering goods exports are above USD 111 billion in FY22 and are expected to maintain growth momentum in the current financial year despite challenges emerging from global geopolitical tensions.” ”
He also said that volatility in commodity prices, supply chain disruptions and possible changes in the world political system will certainly have an impact on trade and the economy.
“Some of the major rating agencies have lowered India’s GDP estimates in the last few weeks. So clearly, the impact will be felt but it should not be severe,” Desai said.
He said that high cost of raw material and freight charges have been among the challenges faced by the industry for some time now.
“But at the same time, we are also seeing new opportunities. The India-UAE and India-Australia free trade agreements, and other bilateral agreements in the pipeline, will boost exports. The government is also ready to tackle any emerging issues and so we We are confident of pursuing higher export targets this year as well.”