Engineering exports likely to reach over $60 billion this fiscal: Nirmala Sitharaman

The country's engineering exports are likely to reach over $60 billion during the current financial year on the back of revival of demand in the US, Commerce Minister Nirmala Sitharaman on Thursday said.

During April-January period of 2016-17, the engineering exports have touched $50.87 billion, exceeding the total shipments of $49 billion in 2015.

"India's engineering exports are likely to reach over $60 billion in fiscal 2016-17, on the back of revival of demand in the USA and for select products like iron," an official statement quoting the minister said.

She was speaking at the International Engineering Sourcing Show (IESS) in Chennai. Russia is the partner country for this event.

During her meeting with Russian Industry and Trade Minister Denis Manturov, both the sides deliberated upon ways to further boost the two-way commerce which stands at $6.62 billion currently.

"We discussed the International North South Transport Corridor (INSTC) that would cut the time and cost for transportation of goods between both countries.

"We also deliberated upon other measures to enhance the trade ties, including the proposed FTA between India and the Eurasian Economic Union, which includes Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan," she said.

Both the ministers also noted the need to finalise a revised Bilateral Investment Treaty.

The Russian minister is leading a 120 member business delegation for the show.

Further, Sitharaman said that the ministry is engaged in a key initiative for technology upgradation of engineering manufacturers for boosting exports.

"This is being attempted by bridging the gap between leading R&D labs and industry for the development of cutting edge export-oriented technologies," she added.

The ministry has identified important industrial clusters, where it is interacting with stakeholders and identifying technology gaps which can be filled by research labs/academic institutions.

"The cutting edge technology would then be shared with the industry to enable them to match the best products in the world," Sitharaman said.

Over 400 exhibitors from India and abroad, and 500 foreign delegates are participating the show.