The Engineering Export Promotion Council (EEPC) of India has been instrumental in propelling the nation’s engineering sector onto the global stage. Established in 1955, EEPC India has evolved into a pivotal institution, fostering international trade relations and offering a plethora of support mechanisms to Indian engineering exporters. This article delves into the key government-backed initiatives championed by EEPC India, highlighting their transformative impact on the engineering export landscape.

A Glimpse into India’s Engineering Export Landscape

The engineering sector stands as a cornerstone of India’s economy, contributing approximately 3% to the nation’s Gross Domestic Product (GDP). In the fiscal year 2023-24, engineering exports witnessed a commendable growth of 2.13%, reaching a valuation of US$ 109.32 billion. This surge is particularly noteworthy against the backdrop of a 3.11% decline in overall merchandise exports during the same period. The resilience of the engineering sector underscores its robustness amidst global economic challenges.

Key Government-Backed Initiatives Supported by EEPC India

1. Interest Equalisation Scheme (IES)

   Launched in 2015, the Interest Equalisation Scheme has been a boon for exporters, especially Micro, Small, and Medium Enterprises (MSMEs). The scheme offers an interest subsidy of 3% for MSME manufacturer exporters across all HS lines and 2% for manufacturer exporters and merchant exporters exporting under 410 specific HS lines. This initiative effectively reduces the cost of pre and post-shipment rupee export credit, enhancing the competitiveness of Indian engineering products in the global market.

2. NIRVIK Scheme

   The NIRVIK (Niryat Rin Vikas Yojana) scheme, introduced by the Export Credit Guarantee Corporation of India (ECGC), aims to provide high insurance cover, reduced premium for small exporters, and a simplified claim settlement process. Under this scheme, the insurance cover has been enhanced to up to 90% of the principal and interest, a significant increase from the previous coverage of up to 60%. This augmentation ensures that exporters, particularly those in the engineering sector, can undertake international ventures with greater confidence and financial security.

3. Export Promotion Capital Goods (EPCG) Scheme

   The EPCG scheme facilitates the import of capital goods for pre-production, production, and post-production at zero customs duty. In return, exporters are obligated to fulfill an export obligation equivalent to six times the duty saved on the capital goods imported, to be met over a period of six years. This scheme enables engineering exporters to upgrade their technological infrastructure, thereby enhancing production efficiency and product quality to meet international standards.

   Indian Trade Portal

4. Market Access Initiative (MAI) Scheme

   The MAI scheme is designed to act as a catalyst for promoting India’s exports on a sustained basis. It provides financial assistance to various export promotion activities on a focus country and focus product basis. Activities under the scheme include market studies, participation in international trade fairs, and setting up showrooms and warehouses in target markets. EEPC India leverages this scheme to organize promotional events such as buyer-seller meets and exhibitions, thereby opening new avenues for engineering exporters.

5. Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

   Implemented to replace the Merchandise Exports from India Scheme (MEIS), RoDTEP aims to refund previously unrefunded duties and taxes, such as VAT on fuel used in transportation, Mandi tax, and duty on electricity used during manufacturing. By reimbursing these embedded taxes, the scheme enhances the price competitiveness of Indian engineering products in the international market.

Impact of EEPC India’s Initiatives

EEPC India’s concerted efforts have yielded significant dividends for the engineering sector. The organization’s initiatives have not only bolstered export figures but have also facilitated the diversification of export destinations. Regions such as West Asia and North Africa (WANA), North East Asia, the Commonwealth of Independent States (CIS), and Oceania have emerged as prominent markets for Indian engineering goods, recording growth rates of 27%, 11.6%, 65%, and 2.6% respectively in the fiscal year 2023-24.

Altus Exports: Your Partner in Global Expansion

While government-backed initiatives lay the foundation for export growth, partnering with experienced export facilitators can further amplify success. Altus Exports stands as a beacon for Indian manufacturers aiming to introduce their products to international markets.

Why Partner with Altus Exports?

• Expertise in Global Markets: Altus Exports boasts a team adept at navigating the complexities of international trade, ensuring that your products reach the right markets efficiently.

• Extensive Network: With a robust network of trusted suppliers, manufacturers, and artisans across India, Altus Exports offers a diverse range of products and swift response times to meet global demands.

• Quality Assurance: Prioritizing quality at every step, from sourcing to packaging, Altus Exports ensures that products meet the highest international standards.

How to Partner with Altus Exports

Altus Exports seeks to form strategic alliances with manufacturers who share a commitment to excellence and global expansion. Ideal partners are those who:

• Produce Export-Quality Products: Manufacturers that adhere to stringent quality standards suitable for international markets.

• Aspire for Global Footprints: Manufacturers eager to expand their presence globally.

• Possess Necessary Documentation and Certifications: Compliance with international regulations and possession of relevant export licenses.

By collaborating with Altus Exports, manufacturers can leverage their expertise in finding buyers, access comprehensive databases, and benefit from a skilled marketing team dedicated to promoting products in the international arena. Altus Exports becomes an extension of your business, acting as your dedicated export team to simplify the complex process of exporting and help you tap into new markets with ease.