India’s engineering exporters should focus on high—end technology products and achieve leadership position in some of the items within five years to boost the sector’s shipments, a study said today.

An EEPC India and KPMG study said engineering exporters should aspire for a dominant position from that of being a “follower” in at least 34 product categories.

India primarily exports low and medium technology intensive engineering goods and the share of high—tech goods is less than 6 per cent of the overall engineering export basket, it added.

It said China may be dominating the global engineering trade but its model is not worth emulating as the Asia’s number one economy faces debt crisis and “calamitous” environmental situation.

“The Indian engineering industry must look for a hybrid model of growth which should include the technological advantages of the western economies like Germany,” it added.

India’s top exporting products include engineering and petroleum items. Engineering exports dipped about 23 per cent to $5 billion in September.

The study said India should strive to achieve leadership at least in some of the products within the next five years.

“This is certainly possible if some of the large exporters integrate well with the SMEs with the help of innovative government schemes so that India becomes a vibrant part of the global supply chain,” EEPC (Engineering Export Promotion Council) said in a statement.

Further the study said adopting the Chinese model of growth for the sector may have undesirable consequences.

India should adopt a hybrid model based on practices of different leaders of the engineering world, it said.

China dominates the global engineering trade with 12.3 per cent share while India accounts for only 1.2 per cent of the world market.

Impediments such as high energy costs, high interest rates, lack of adequate physical infrastructure and outdated manufacturing processes are impacting competitiveness of the Indian engineering sector, it added.

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