North America being the major trade partner of India with its combined GDP of US$24.35 trillion, EEPC would focus on the three key markets of US, Canada and Mexico during India Subcontracting Expo 2021.
“North America remained the most preferred destination for India’s engineering exports with around 20% share in India’s global engineering exports in 2019-20,” said EEPC India chairman Mr Mahesh Desai while addressing the participants.
Lauding the efforts of EEPC India, minister of state for commerce and industry Mr Som Parkash noted that the export promotion body facilitated manufacturers and traders during the pandemic to continue trade momentum.
Addressing the virtual Expo, Dr Srikar K Reddy, joint secretary, ministry of commerce & industry said that North America is a priority market for the Indian engineering sector and top-most export destination for engineering products.
“India can be a reliable partner in supplying engineering products to the North American region,” he said.
Merchandise export from India has shown signs of recovery and is expected to make a comeback faster than expected as all major countries have rolled out vaccination drives against Coronavirus. Restrictions in the wake of pandemic have been considerably eased and economic activities are picking up globally.
As trade and business picks up pace, there could be more demand from North American countries for engineering items.
“India enjoys a trade surplus in engineering with the USA, Canada and Mexico. The global economic recovery after the pandemic shock has gathered pace especially in the developed as well as emerging regions. This reshaping brings new areas of opportunities in those regions for the trade and investment partners,” said Mr Anupam Shah, chairman of the committees on trade with North America, EEPC India.
Mr Shah informed that India’s engineering trade with USA was US$19.6 billion in 2019 whereas with Mexico it was US$2.6 billion and with Canada US$1.4 billion.
Mr Arun Kumar Garodia, vice chairman of EEPC India noted that recent progress on coronavirus vaccines had brightened the economic outlook.
Bilateral trade and investment between Indian and North American countries has seen an upward trend in recent years. India has been a preferred destination for investors from the US and Canada. Mexico’s investment in India is currently less but there is a lot of potential.
Speaking at the inaugural session of the Subcontracting Expo 2021 (March 9-12) , Indian High Commissioner to India Mr Ajay Bisaria informed that total bilateral trade in goods and services between India and Canada in 2019 had jumped to close to US$13 billion with an overall economic engagement of over US$100 billion.
“Canadian pension funds have continued to invest in India even in pandemic times. The portfolio investments from Canada to India have increased from US$ 5 billion in 2014 to over US$ 55 billion now. This exposure could double by 2025,” he said.
Mr Bisaria further mentioned that more than 600 Canadian companies have a presence in India and more than 1,000 companies are actively pursuing business in Indian markets in various sectors.
Engineering accounts for about 25% of India’s total global exports in the goods sector and is one of the largest foreign exchange earners. It employs nearly 4 million skilled and semi-skilled workers.