Engineering Export Promotion Council of India has expressed concern that the spread of Omicron, the new variant of coronavirus, may once again disrupt the global supply chain, which could lead to a slowdown in trading activities.
Exports of engineering goods registered a 38 per cent year-on-year growth in December, 2021 to USD 38.4 billion.
The sustained growth momentum demonstrates the sector is well on track to grow its market share in the global trade, EEPC India chairman Mahesh Desai said in a statement on Friday.
“While the order pipeline has been remarkably good, we could see some slowdown if Omicron disrupts the global supply chain. In the recent weeks, we have seen some signs of volatility and uncertainty due to the ongoing pandemic wave across the world but by putting suitable policy measures in place, the government could provide cushion to trade and business,” Desai said.
He called for urgent action on part of the government to reduce soaring raw material prices and logistics costs.
“We hope that in the upcoming budget, the government will take appropriate measures to reduce the cost of primary steel, copper, aluminium and other raw materials. This will be a major relief for the sector which is dominated by micro, small and medium enterprises,” he said.
Some policy push now would keep the industry ready to take challenges in future and set higher export targets next financial year, he added.