It is reported that India's engineering exports plunged by around 31% to USD 2.6 billion in August due to a slump in demand in major markets like the US and Europe. As per report the exports stood at USD 3.8 billion in August 2008.
A official said that engineering goods exporters are not hopeful of recovery in demand in the international market in the coming months. It said that exporters are pinning their hopes on revival of demand in the major markets due to large stimulus packages. However at best only tentative revival signs have been perceived in select export destinations.
The government had announced several measures to revive exports including 2% interest subsidy, duty-free import of capital goods and had extended income tax holiday for export units for one more year.
The sector, which had contributed USD 37.5 billion in India's total exports of USD 168 billion in 2008-09, employs over 4 million people. India's overall exports have been contracting for the last 11th month in August to about 20 per cent.
Source : www.expressindia.com