livemint.com.

The engineering goods sector is where we think [India] holds a lot of promise, where the share in total exports seems to have unfortunately stagnated over the last few years after rapid growth for several decades. This is where we have observed a very serious inclination to move up the value chain, such that currency appreciation isn’t the only variable that defines competitiveness.

A case in point are auto parts within the engineering goods space: Now, companies such as Bharat Forge Ltd and Amtek Auto Ltd aren’t merely getting work outsourced to them, but are increasingly being considered true partners by their global OEM (original equipment manufacturers) customers.

Make no mistake, exports will always be affected by global cyclicality and forex moves over the short term, but long-term competitiveness can only be established if one can weather both, and that’s where we see the potential of India’s engineering products.

Popularity: 1% [?]