BRUNEI: Indian engineering export houses, led by EEPC India, are seeking new markets in South East Asia amid prolonged slowdown in the western markets.
India's engineering exports have registered a compound average growth of 12.6 per cent from 2007-08 to 2012-13. However, the industry came under pressure in the wake of global slowdown, particularly in the traditional markets of the US and Europe.
A strong Indian contingent represented by 85 leading engineering and automobile manufacturers are showcasing a range of high-tech items including passengers cars, station wagons, trucks and other motor vehicles, for global buyers at Ho Chi Minh city in Vietnam, according to an official statement issued today.
The exhibition coincided with Prime Minister Manmohan Singh's visit to Brunei Darussalam for the 11th India-ASEAN Summit.
India's engineering exports, the second largest contributor to the country's export basket, aggregated to $56.7 billion in the fiscal year 2012-13.
EEPC India Chairman Anupam Shah said, "showcasing of Indian auto and other products would also help the industry cope up with the decline in the sales of cars, trucks and other vehicles in the domestic market, which has been battling with high cost and high interest rates".
"Vietnam assumes a special importance not only because its economy is opening up, but also it has weathered well the impact of the global slowdown and continues to grow," Shah added.
India's Ambassador (designate) to Vietnam Preeti Saran said that unlike the ASEAN region as whole, India's exports to Vietnam are more than imports and there is a further scope.
Indian exports to Vietnam stood at $3.96 billion against imports of $2.3 billion in fiscal 2012-13.
India is also considering earmarking $100 million for Buyer's Credit under the NationalExport Insurance Account (BC-NEIA) for use by Vietnam. India has also extended 17 Letters of Credit totalling $164.5 million to Vietnam, the statement said.
Besides trade, investments by Indian companies in Vietnam totals about $936 million in 86 projects in sectors such as oil and gas exploration, mineral exploration and processing, sugar manufacturing, agrochemicals, IT and agricultural processing.