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`50,000 engineering jobs likely to be lost due to recession`
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`50,000 engineering jobs likely to be lost due to recession`
About 50,000 jobs across the engineering industry - auto-components, textile machinery, forgings and castings - are likely to be lost due to the economic meltdown, EEPC India, the apex body of engineering exporters said here on Monday.
"Till last year, the engineering sector had 35 per cent year-on-year growth. But with the impact of the economic downturn, we may register 20 per cent negative growth in this quarter", EEPC India National Vice Chairman Mahesh K Desai said.
The coming quarters would experience a further dip in growth and if this trend continues there may be 50,000 jobs lost in these sectors, he said
Stating that 80 per cent of its members were Small and Medium Enterprises, he said most companies are in operation despite poor businesses.
He said nothing had been mentioned about the stimulus packages` announced by the Centre and said "SMEs were the largely hit by the downturn".
To a query, he said Tamil Nadu with a good engineering hub, would be the first to get `hit` by the recession followed by Maharashtra, Karnataka, Punjab and Haryana.
Desai said banks should come forward to give `packaging credit` at very reasonable rate of interest for the sector and suggested that they extend packaging period from the present 180 days to 360 days, at least during the recession period.
Stating that 40 per cent of engineering goods exported to USA and European markets have been largely hit by recession, he said innovative upgradation of engineering products and services and cultivation of new markets like Latin America, Common Wealth of Independent States was the need of the hour.
He said exports of engineering products to Latin American countries have risen from USD 1001.83 mn in 2006-07 to USD 1152.93 mn in 2007-08.
The council had proposed to conduct the largest Indian Engineering Exhibition in Brazil, slated to be held later this year, he said.
Giving some statistics, Desai said "the overall export performance of engineering goods in April-January 2008-09 were valued at Rs 1,35,570 crore, which is 30.98 per cent higher than the previous year (Rs 1,03,499) (April-January 2007-08).
"The export figure shows that the engineering sector would retain its share of 20 per cent plus in the overall exports, he said, adding it would be a challenge in the coming fiscal.
He said certain segments of the industry like hand tools, bicycles and parts, castings, auto-components and similar other low value added engineering units are no different from textile and leather sector in terms of their `shrinkage` in demand leading to loss of output and employment.
Source:
http://economictimes.indiatimes.com/News/News-By-Industry/Jobs/50000-engineering
"Till last year, the engineering sector had 35 per cent year-on-year growth. But with the impact of the economic downturn, we may register 20 per cent negative growth in this quarter", EEPC India National Vice Chairman Mahesh K Desai said.
The coming quarters would experience a further dip in growth and if this trend continues there may be 50,000 jobs lost in these sectors, he said
Stating that 80 per cent of its members were Small and Medium Enterprises, he said most companies are in operation despite poor businesses.
He said nothing had been mentioned about the stimulus packages` announced by the Centre and said "SMEs were the largely hit by the downturn".
To a query, he said Tamil Nadu with a good engineering hub, would be the first to get `hit` by the recession followed by Maharashtra, Karnataka, Punjab and Haryana.
Desai said banks should come forward to give `packaging credit` at very reasonable rate of interest for the sector and suggested that they extend packaging period from the present 180 days to 360 days, at least during the recession period.
Stating that 40 per cent of engineering goods exported to USA and European markets have been largely hit by recession, he said innovative upgradation of engineering products and services and cultivation of new markets like Latin America, Common Wealth of Independent States was the need of the hour.
He said exports of engineering products to Latin American countries have risen from USD 1001.83 mn in 2006-07 to USD 1152.93 mn in 2007-08.
The council had proposed to conduct the largest Indian Engineering Exhibition in Brazil, slated to be held later this year, he said.
Giving some statistics, Desai said "the overall export performance of engineering goods in April-January 2008-09 were valued at Rs 1,35,570 crore, which is 30.98 per cent higher than the previous year (Rs 1,03,499) (April-January 2007-08).
"The export figure shows that the engineering sector would retain its share of 20 per cent plus in the overall exports, he said, adding it would be a challenge in the coming fiscal.
He said certain segments of the industry like hand tools, bicycles and parts, castings, auto-components and similar other low value added engineering units are no different from textile and leather sector in terms of their `shrinkage` in demand leading to loss of output and employment.
Source:
http://economictimes.indiatimes.com/News/News-By-Industry/Jobs/50000-engineering
