18 September, 2009

Engineering exports plunged by 31 pc in August-2009

India's engineering exports plunged by around 31 per cent to USD 2.6 billion in August due to a slump in demand in major markets  like the US and Europe

The exports stood at USD 3.8 billion in August 2008, Exporters are pinning their hopes on revival of demand in the major markets due to large stimulus packages. The government had announced several measures to revive exports including 2 per cent 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 40 lakh people. India's overall exports have been contracting for the last 11th month in August to about 20 per cent.