NEW DELHI: After declining for four months in a row, India's engineering exports turned positive in August and registered a marginal growth of 2.18 per cent to USD 4.68 billion compared to a year-ago period.
In August 2012, these exports stood at USD 4.58 billion, according to the data provided by the Engineering Export Promotion Council(EEPC).
"In the current fiscal, engineering exports turned positive for the first time in August on account of reviving demand in the traditional market Europe and emerging ones like Latin America and Africa," an EEPC official said.
The US and Europe together account for 60 per cent of the country's total engineering exports.
However in the first five months of 2013-14, these exports declined by 4.2 per cent to USD 22.72 billion compared to the same period last fiscal.
Besides, the EEPC has sought setting up of a Technology Upgradation Fund Scheme (TUFS) to the tune of Rs 3,500 crore to boost exports from the sector.
The council feels that engineering exports, which contribute the second largest share to the overall export basket, need to be revived.
In spite of massive growth in the past few decades, the domestic engineering sector suffers from severe technological obsolescence and lack of economies of scale.
Engineering exports include transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.