Tension in Middle East may hit engineering exports: EEPC

The adverse geo-political situation in the Middle East may hit engineering exports from the country, sectoral exports body EEPC India said on Thursday.

EEPC also noted that Rupee depreciation is not helping exports.

"While shipments to the Middle East were contracting due to global slowdown, the disruptions there can cause a further setback," EEPC India chairman Ravi Sehgal said here.

Engineering exports to the UAE in the month of November was down 2.3 per cent to USD 261 million. The exports were lower by 1.74 per cent during April-November 2019 to USD 2987 million over the respective corresponding periods last year.

But, exports to Saudi Arabia which had witnessed sharp rise might get tripped if the tension prevailed in the region, apprehended EEPC officials.

Exports to Saudi Arabia in November 2019 and April- November period jumped 48 per cent and close to 14 per cent respectively over the corresponding periods last year.

Despite the depreciation of the Rupee, engineering exports had not witnessed growth in the recent months which in contrast to the normal trend.

Total engineering exports from the country was USD 51.07 billion during April-November 2019-20, as against USD 52.15 billion during the same period last fiscal, registering 2.06 per cent decline.