Engineering exporters seek budget backing for technology upgradation

Engineering exporters have sought budget allocation for creation of a technology upgradation fund, so as to boost the competitiveness of Indian products and achieve the export target of $125 billion by the year 2013-14.

The commerce ministry has set an export target of $500 billion by FY14, with engineering sector contributing 25 per cent of the target. Engineering goods account for a fifth of the country's annual exports at present.

However, engineering exports from the country have been witnessing a downtrend in the wake of the global economic downturn and increasing competition for neighbouring China even in the domestic market.

Engineering exports, which early this year accounted for up to 80 per cent of the country's monthly exports, have however grown by 21 per cent year-on-year to $49.7 billion during April-January this fiscal. EEPC expects the annual exports to total $60 billion this fiscal

''Without technology upgradation fund, competing with other countries like China will be very difficult, agency reports quoted EEPC executive director R Maitra as saying.

EEPC has submitted its plan to the finance ministry for setting up a technology upgradation fund jointly funded and operated by industry and the government.