Engineering exporters body EEPC on Sunday said imposition of restrictions by states to contain rising coronavirus cases could affect the exports and the worst impacted would be MSMEs. The Engineering Export Promotion Council (EEPC) said while recovery in the last few months of the fiscal year offers a ray of hope for the sector, the rising number of COVID-19 cases poses a downward risk.
"In order to contain the virus spread, many states have imposed restrictions. This could affect exports and the worst impacted would be MSMEs (micro, small and medium enterprises).
"The government therefore needs to expedite vaccination to lessen the impact of the pandemic," the council said in a statement.
It also said that buoyed by rising global demand and increased economic activities, exports of 32 out of 33 engineering goods categories such as iron and steel, non-ferrous metal products, industrial machinery and office equipment recorded positive growth in March, signalling good times for exporters reeling under loss for the past one year due to pandemic.
The US continued to be on the top of the list of major export destinations as engineering exports to America rose to USD 1,152.82 million in March 2021 as compared to USD 917.02 million in the year-ago period, it said adding exports to the US fell down in cumulative terms during 2020-21.
Similarly, exports to China, India's second largest export destination, jumped to USD 553.06 million in March. The UAE retained its third position of largest export destination.
"Region wise, the European Union (EU) ranked as the numero uno destination leaving North America behind with a share of 18.5 per cent of total engineering goods exports in 2020-21. India's exports to North America ranked second with 18 per cent share while ASEAN region accounted for 15.4 per cent," it added.