The Engineering Export Promotion Council (EEPC) expects significant export opportunities emerging from the eventual reconstruction of Ukraine and Russia.
EEPC Chairman Arun Garodia highlighted that, although estimates for Ukraine’s rebuilding costs vary, some reports suggest it could reach $1 trillion.
Regardless of the specific figure, Garodia believes that substantial opportunities will arise once the country begins to rebuild after the ongoing war with Russia concludes.
“Ukraine wants to buy from us; Russia also wants to buy from us,” Garodia remarked.
He expressed optimism that the war would soon come to an end, particularly once Donald Trump returns to the US presidency.
He also noted that India has maintained friendly relations with both nations throughout the conflict.
EEPC’s Flagship Event
Garodia made these comments during a media conference held to announce the EEPC’s flagship event, the International Engineering Sourcing Show (IESS), scheduled to take place in Chennai from November 27 to 29, 2024.
The IESS will serve as a platform for showcasing India’s engineering capabilities and fostering global trade relations. Garodia also emphasized that many countries now prefer buying from India instead of China.
Engineering Export Growth
Garodia forecasted that India’s engineering goods exports, including steel and aluminum, would surpass $118 billion in 2024-25, up from $109 billion in 2023-24.
This increase is part of a broader trend. In the first half of the year (April-September), India’s engineering exports rose by 5.3%, reaching $56 billion.
Since the second half of the year usually sees stronger performance, Garodia is confident that the $118 billion mark will be exceeded, with potential to reach $125 billion.
Ambitious Export Targets
The government has set ambitious engineering export targets for the future: $300 billion by 2030 and $1.5 trillion by 2047.
Garodia acknowledged that while they are ambitious, they are not unattainable. He explained that the government set these targets after consulting with industry leaders.
Garodia also pointed out that emerging sectors, such as renewable energy and electric vehicles, are key areas that provide significant growth potential for India’s exports.
Tariff Policy and Its Impact
In the context of global trade dynamics, Garodia discussed the US’s tariff policies under former President Donald Trump.
During his first term, Trump used Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on all countries, excluding Canada and Mexico, with a particular focus on China.
The policy continued under President Biden, who, on September 27, 2024, finalized additional tariffs on Chinese imports under Section 301 of the Trade Expansion Act.
As reported by thehindubusinessline.com, these tariff measures have had a lasting impact on global trade and trade relations, with many countries, including India, benefiting from the shifting trade landscape.
