Exim Bank is to promote project exports in a big way this year. Though the global economic condition is expected to remain subdued for another two years, there is enough room for Indian project exports to grow, provided exporters manage to identify potential markets and importers.
According to T.C.A. Ranganathan, Chairman and Managing Director, Exim Bank, this is precisely what prompted the bank to focus more on market research and mapping of importers from across the world and, thereby, provide Indian exporters with sufficient database.
Exim Bank played a lead role in promoting project exports from India last year too. As on March 31, 2012, some 340 project export contracts were under execution in 62 countries by 74 Indian companies, with support from the bank.
According to Ranganathan, going by the bank’s market research, currently there is huge potential for project exports across verticals such as engineering, construction and equipment, followed by chemicals and pharma products, petroleum products, and electronic goods.
These segments have witnessed a marked growth in the last decade. Between 2002-03 and 2011-12, exports of petroleum products grew at a compounded annual growth rate of over 40 per cent, followed by engineering goods and electronic goods, at 25.2 per cent and 24 per cent respectively.
However, he said exports in the current financial year may remain flat or marginally lower than last year. In the first half of this year there was a marginal drop against the comparable period in 2011-12, whereas last year it grew 40 per cent over the previous-year period.