Engineering Export Promotion Council, on Monday, expressed serious concern after growth of engineering exports in rupee terms dropped sharply in the first quarter, recording a mere one per cent growth from Rs 27,936.43 crore in April-June 2006 to Rs 28,266 crore in April-June 2007, thanks to rising rupee appreciation.
In dollar terms, engineering exports in the first quarter of current fiscal (April-June 2007) was to the tune of US$6.861 billion, an increase of only 12 per cent over US$6.138 billion during the same period last fiscal.
If the rupee continues its slide vis-a-vis the US dollar for another quarter, engineering exports growth in rupee terms will be negative and exporters will suffer, EEPC Chairman Rakesh Shah cautioned.
Engineering exports had grown by 33 per cent in dollar terms during the last fiscal and had the highest share in India’s US$125 billion exports in 2006-07.
The Council, the working committee of which is meeting in Hyderabad on September 1, 2007 to review the situation, forwarded a number of suggestions to the Ministry of Commerce & Industry for removal of procedural problems.
