Steel MIP impacts competitiveness of engineering sector: FIEO

While engineering exports have declined by about 16 percent in first 11-months of the current fiscal, it said adding auto and auto components, cycle and cycle parts, hand tools, industrial and electrical machineries are the worst sufferer.
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Mar 19, 2016, 02.04 PM | Source: PTI

Steel MIP impacts competitiveness of engineering sector: FIEO

While engineering exports have declined by about 16 percent in first 11-months of the current fiscal, it said adding "auto and auto components, cycle and cycle parts, hand tools, industrial and electrical machineries are the worst sufferer".

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Steel MIP impacts competitiveness of engineering sector: FIEO

While engineering exports have declined by about 16 percent in first 11-months of the current fiscal, it said adding "auto and auto components, cycle and cycle parts, hand tools, industrial and electrical machineries are the worst sufferer".

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Steel MIP impacts competitiveness of engineering sector: FIEO
Imposition of minimum import price (MIP) on steel has impacted the competitiveness of Indian engineering exporters, Federation of Indian Export Organisations (FIEO) said.

"Exporters are already working on low margins and facing cut-throat competition besides huge volatility in currency.

The imposition of MIP resulting in increase in steel prices by 15 percent has further blunted the competitive edge of Indian engineering sector," exporters body FIEO said in a statement.

While engineering exports have declined by about 16 percent in first 11-months of the current fiscal, it said adding "auto and auto components, cycle and cycle parts, hand tools, industrial and electrical machineries are the worst sufferer".

The MIP imposed on 173 steel products covers roughly 80 percent of steel imports and thus impact engineering sector hugely, it said.

Government needs to strike a balance between the interest of few large steel companies at the cost of thousands of micro, small and medium units which together provides more than 100 times of the jobs provided by large steel companies, it added.

It said that government should provide steel to all export companies particularly in MSME sector at international prices without compelling them to go through advance authorisation route which requires a minimum quantity of imports for economic viability and thus not suitable to their requirement.

Meanwhile, engineering exporters body EEPC said the sector will showcase its products in prestigious four-day Russian industrial trade show at Yekaterinburga, starting from July 11.

The sector will project how the country is seeking global technology and investment with a view to becoming the manufacturing hub for the global supply chain, EEPC said in a statement.

"Facing global headwinds, India is looking to diversify its trade and industry collaborations and Russia fits in very well in our game plan. Some of the blue-chip public sector companies, including the NTPC, BHEL and NHPC have responded well to be part of the show," it said.

India is the partner country in the global show.

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Steel MIP impacts competitiveness of engineering sector: FIEO

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