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Engg sector takes a hit in exports
Mar 11, 2013

The engineering sector in India has taken a hard hit with the slowdown. Persistently high inflation rates combined with the hawkish stance of the Reserve Bank of India (RBI) has hurt capex plans of most companies. This in turn has led to a slowdown in demand for engineering sector. As shown in the graph, things are not too good on the export front either. There has been a decline in demand in nearly every export market in the period April 2012 to January 2013 as compared to the year before numbers. The reason for this is the recession brought about by the crisis that has gripped the global economy since 2008. Unless the global climate turns favorable demand from export markets is unlikely to revive. Therefore the only hope for the sector is the domestic market. For this there is a need for policy reforms that will boost the investment climate. Unless that happens, the woes of the engineering sector will not end.

Data Source: Financial Express

This Chart Of The Day was published in The 5 Minute WrapUp - 'Insider trading is rampant in India'

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