New Delhi: With seven of India’s top 25 engineering exports destinations are from EU, any upheaval in Europe following Brexit could have an impact on the exporters who are already in a state of distress, according to an Engineering Export Promotion Council of India (EEPC) analysis.
India’s total engineering exports to top 25 destinations, which account for 75 per cent of the country’s total engineering product shipments, aggregated to $7.6 billion for the April-May period of the current fiscal. Of this, EU members contributed $1.5 billion with the UK emerging as the number one destination among the EU members, followed by Germany, EEPC said in a recent paper.
“Seven of our 25 destinations are from EU. So, any upheaval in the entire market as a result of the political division with wide economic ramifications on the trade, investment and currency movement should be a cause of worry for us,” said EEPC chairman T.S. Bhasin.
Though a two-year window of negotiations for the exit of Britain is available, he said the current indications point towards extreme political stand by a divided British polity and the EU leadership.
EEPC India paper said China may take pro-active steps and peg its currency to its advantage and benefit from the emerging situation in the European market. “India too should keep a close watch on the unfolding situation,” it said.
