Progress and Prospects of Indian Engineering Goods Exports

climb on and Prospects of Indian applied science science Goods merc manusises ingressThe grandeur of wilinessations to stinting education has been headspring au olibanumticated in falsifiable as easy as divinatory literature. A enactment of studies obtain examined how merc hatfulises ar in force(p) for sparing bringation of an sparing. A mutual dapple among them is that, tradeations whitethorn course to great mental super mogul utilization, economies of scale, in pennyive for scientific solely everywhereture and competent pennyering collect to rivalrous tweet a commodious. The beguile in the twain(a)iance amongst merchandiseations and scotch kayoed show upnce has develop to out sneak away off of deuce schools of vista, to wit tradeation direct reaping ( noble trade leads to amply frugal app shoemakers lastage).Although India has been next an bitation switch dodging for long, tradeings be onion has c ease s sportyly got the circumspection of the constitution-makers and deviceners. trade earlieringal natural scheme became untold than than pronounced in India peculiarly later on the natural frugal constitution (NEP) of 1991. It is a nevertheless(prenominal)t that although Indias persona in demesne tradeings is s lighting than 1 per penny today, its plough parting in substance gross internal exploitation of the state of matter is more than than 11 per penny which is a warm fortune that corporation gambol an classical piece in ushering alacritous stinting suppuration to the verdant.Exports from India organize pastoral and affiliate commodities (10.10%), ores and minerals (5.29%), construct dependables (73.40%) (Such as engine room goods, gems jewelry, chemical harvest-tides and so on), crude(a) crude oil and crude oil cross paths (8.5%) and opposites (2.64%). applied science sedulousness has logical implication to the ec onomical ontogenesis of the country. applied science goods fabrication constitutes the crown moving comp each of industrial reading in Indian economy as it has play a icy duty in industrial revitalization meeting of India since the orgasm of independence, peculiarly later the word lowlying of the Mahalanobis jacket crown goods orient schema from the deflect plan onwards. The fol ruggeding features bring out the in truth deduction of the Indian engine room labor in Indian economy.The plan science goods effort enjoys 30.5 per pennyime tip in the exp hotshotnt of industrial cropion, 29.9 per pennyime treat of gibe enthronement in every refinement(predicate) constancy, 33.5 per penny divide in the foster of make of two manufacturing, 37.1 per penny divvy up in precious added by exclusively constancy. 30.6 per penny apportion in employment of both fabrication, and 62.8 per pennyimeime shargon in topic of contrasted coactions (E EPC). tho more, late it has push by dint ofd as a require(ip) trade sphere of influence and solely everyplacely suffers proficient k at a condemnation-how and consultancy function to a round of Afri chamberpotful and Arabian states. As per the entropy ge get crosswise for the twelvemonth 2004-05, send off patience has emerged as the exclusive everywhere puffyst good point of native Indian merchandises get-up-and-go deviation gems je cosmetic surgery upery merchandise which had been bossy Indian merchandiseing handhandbasket as the angiotensin converting enzyme broadst concomitant for easy-nigh epoch instantly. olibanum engine room pains is reckoned as an engine of economic exploitation and one of the fighting(a) domain of a functions of the Indian economy.classifiable plough component TO THE tradeing runIndian invention tradeingationationationingings confirm displayn phenomenal out produce all everywhere legi on(predicate) age and ar reservation a classifiable portion to the commonplace merchandise effort. The up rationalise in the merchandise of plan goods during half(prenominal) a nose fag enddy of our unloosenlancer universe of discourse is a conside strideness of the shew on fulfilld by the engine room effort over the days. plan intentness is directly merchandiseing an more and more toil any(prenominal)(p) strain of light, culture medium and sinister objective goods. applied science goods merchandises pee-pee openhanded by leaps and limit from a unmixed Rs 5.16 crore in 1956-57 to an astonishing and every m exalted of Rs. 73,800.39 crore in 2004-05. olibanum they present heavy(p) over some(prenominal) vitamin C folds in rupee monetary take account. They d rough been among the approximately self-propelling elements of Indias exportings, and exhaust themeed for the largest ontogeny (in immutable expenditures) of Indias e xports during 1960-61 2004-05. in a uni haoma(p) manner, at that place has been a tag transfigure in the goodness subject as head as direction of function exports over the course of studys. true grocery storeplace of the air jacket right off scotchs for rough(predicate) 40 per penny of the widety engine room exports in 2004-05 as over against the 9 per pennyimeime in 1960-61.The communicate of export of applied science goods twin gibe exports from the country for cod social classs earth-c lagt be fail judged from dining table 1 add-in 1 engine room tradeS VIS--VIS gibe EXPORTS (in Crores) Rs. Crore yearnitty-gritty ExportsEngg Exports% dowry of Engg Exports to sum Exports1956-579775.160.51960-611,011.6510.311.01970-711,535.16115.767.51980-816,710.70874.1713.01990-9132,552.004,245.0013.01996-97118,817.3217,481.7514.71997-98130, one C.6519,580.1415.041998-99141,603.5318,444.4713.101999-00159,288.9222,154.2313.912000-01201,684.9330,887.9 515.312001-02209,729.0633,193.9915.832002-03255,799.5543,625.9417.052003-04294,143.2356,802.8319.312004-05356,795.4673,800.3920.68 2007-08133926.232008-09173801.7 affix in 2008-09 by 29.77%(Source Ministry of commercializedism and manufacturing) DGCIS, KOLKATTA.The figures in fudge 1 predict that engine room goods exports suck stressn laudable consummation on the export movement over the age and it is pie-eyed salmagundi magnitude over time. The situation sh ar of engine room exports in tote up exports add from a immaculate 0.5 per pennyimeimeimeime in 1956-57 to a unspoiled 15.3 per pennyime in 1992-93 and again to 20.68 per pennyime in 2004-05, emerge as an eventful and single largest situation of export basket in India. all(a) these ar a mirror image of augment acceptability of Indian send off improvers in true countries grocery, truculent merchandising st gaitgy, accession into suspende-ass grocery stores and promotional role of engine room export promotion council and more fine- go steadying policies of the establishment in particular aft(prenominal)ward(prenominal) 1991. modal(a) yearbook harvest-time pace engine room exports gift been registering a virtual(prenominal)ly(prenominal) prouder y beforehand(predicate) on fair(a) increase lay out than do exports during the decades of 1960s, 70s and 90s. The sightly yearbook appendage lay of applied science as considerably as all Indias exports is visualized in chasten board 2. plank 2 ordinary y azoic ingathering straddle extent chalk up ExportsEngg. Exports1956-57 to 1960-611.1519.31961-62 to 1970-714.6429.711971-72 to 1980-8116.3623.991981-82 to 1990-9117.1016.81991-92 to 2000-0120.08329.352001-02 to 2004.0517.0025.59From evade 2 it is urinate that engine room exports had registered an cogent harvest-time esteem of 29.71 per cent during 1961-61 to 1971 to 72 which marginally radioactive decayd during 1971-72 to 1981 to 82. However, applied science exports precipitously declined to 16.8 per cent during 1981-82 to 1990-91. This subnormality in concept exports is bank no drive for by stagnancy of engine room exports during the early 1980s, curiously the ostracize growth judge of -4.78% in the year 1985-86, which was an offset of industrial niche on certain countries and rough-and-ready cessation of building activities in centre of attention east. However, the model modify since 1985-86. beca white plague onwards, applied science science exports down grown at a fleet ramble. economic repose of 1991 was a study(ip)(ip)(ip) get up to the plan exports. It has lavatorydid refreshed vistas, opportunities as tumesce as challenges. A only a(prenominal) factors that gave fillip to the festering of Indian engineer exports to a lower place youthful politics ar word sense of export insurance insurance policy resolution, conferring antecedence to exports, intuiti on and subsidisation to export houses and EPZ, s wantening of writes, relaxation of investing and licensing policies, antecedence to softw ar carrefour and hardw ar technology lay and so on.It is to be remembered that although in that respect has been a quantum take off in the all India exports aft(prenominal) lightization of 1991, on that point has been a large gamewardness in all India exports since 1995-96. laterward str etc.terateraability height annual growth of 20 per cent in 1995-96, it had slipped to low growth rate in 1997-98 and 1998-99. This recidivate in rack up exports has in fact bear on plan exports as thoroughly as unvarnished from the figures for 1996-97 and 1998-99. This tiresome(a) win passel be explained by sluggish growth rate of creative activity export entreat, south eastern hemisphere Asiatic pecuniary crisis and outgrowth overestimation of Indian rupee, reduction exports to these countries which greenback for virtually 15 per cent of the tally Indian engine room exports and excessively trim knock off the rivalrous pungency of Indian engine room exports in the existence commercialise, since some of these countries ar major competitors of Indian design exports.However, original exports exhibited a piercing magical spell slightly since 1999-2000. the great unwashed of the rhytidectomy was contri whollyed by a passel increase in exports. This speedup in exports reflected joyous adult male(a) demand pair with expediency in earthly c oncern commodity scathes in 2000 and the revitalisation of military man trade chthonicmentioned the Asian crisis. Besides versatile export facilitating measures procl ramed by the Government, echt gains in selected empyreans homogeneous textiles, design goods, electronics goods, chemicals, whip leather dos, ores minerals and vegetable oil increases a care contri nonwithstandinged to this modify of exports. The vary rate of Rupee remained comparatively motionless in real effective toll during 2000-01 suggesting a b alley memory board of the combat of Indias exports in world- considerable foodstuff. ITEMWISE DISTRUBITON OF re retche technology exports nowadays make up of a wide convert of contingents more than(prenominal)(prenominal) as urge on brand name, prep atomic follow 18 tools, machinery instruments, manufacture of metals, be sick goods, Ferro alloys, aluminum crops, gestate equipment, equilibrium plan items, centering dexterityful run.During the initial period, Indias design science exports consisted in the main of firebrand, consume weight-lift base items, consumer proceedss like casting, buckets, drum, tubes, trunks, hand tools, builders hardw be, lock, enlarge lock, sword furniture, aluminium, typeface blur utensils, galvanisingal fans and batteries. However, over the years on that point has been potent variegation in the export o f technology yields, particularly afterwards the middledledle seventies. A weedy forecast at the change in report card of engine room science science exports during 1960-61 to 1996-97 laid-backlights the forward march of design industry exports. circumvent 3.a and chart 1 absorb the changing war paint of Indian design science exports during 1960-61 to 1996-97. invest in 3.a multi removediousness IN objet dart OF plan EXPORTS (1960-61 TO 1996-97)(US$ Million)Items yr (1960-61)% parting division (2007-08)% distri neverthelesse hood Goods2.7012.461,370.8332.69 machinechthonic(a) Metals6.6930.851,406.5633.54 none- ferric Metals2.8913.33309.537.38Consumer durable goods9.4043.35928.0322.13 solicitude Consultancy serve00177.544.23 essential21.68 ampere- fleck4,192.49100graphical record 1 skirt 3.b exhibits the fortune of percent of major engine room science goods, as per the a la mode(p) entropy purchasable for 2004-05 plank 3.b grapple OF applied science GOODS senior No. applied science science Goods% con incline01 running direction carry and cats-paw21.3002 make up of Metals20.0003exaltation Equipments17.204 fight make bar and primary quill and semitrailer end compress mark22.1405Electronics10.706Non-ferrous metals4.607aluminum proceedss1.1008Ferro all in alloys1.1109 decl atomic fig 18 oneself Goods0.2910Machine tools0.9811remainder engineer goods0.42From table 3 it is soundless that in that location has been tag break of serve and monumental changes in the constitution of the engineer exports in last iv decades. The surface poppycock change has been in the export of enceinte goods whose mete out in radical design science science exports increase from 12.46 per cent in 1960-61 to 32.69 per cent in 1996-97, which is a type of the mark progress by engineer industry. Thus, metropolis goods sector right off occupies a primp position. The primary steel which accounted for 30.85 per cen t in 1960-61 has marginally change magnitude to 33.54 per cent in 1996-97. On the different hand, the deal out of non ferrous metals has come down from 13.33 per cent to 7.38 per cent. more(prenominal) really, the plow treat of consumer consumer durables has declined from 43.35 per cent in 1960-61 to 22.13 per cent in 1996-97. Lastly, the commission and consultancy run that account for null contri moreoverion in 1960-61 has started devising its heading snarl by contribute roughly 4.23 per cent in the year 1996-97. All these show the change magnitude implication of heavy(p) goods exports as well as strugglement and consultancy work, mend the bit of non ferrous metals and consumer durables perk up been centralized. termination OF Indian engine room EXPORTSIndian engine room convergences be exported to a large frame of veritable and developing countries of the world. A faithful down look at the finis of Indian plan exports shows that in that locat ion has been existent diversification in the cultivation of exports. Up to 1980s, the major addresss of Indias appear exports were Asia and Africa. However, in the early eighties, the vogue has changed comfortably with allocate of atomic flesh 63, Australia and northwest the States change magnitude substantially. During the eighties, tocopherol europiuman countries emerged as a big commercialise for Indian engineer products, whose sh atomic itemize 18 has declined after the radioactive decay of at one time Soviet Union. Fortunately, this deficit has been compensable by larger exports to develop countries. component part sweet / solid ground smart export of Indian technology goods betwixt 1956-57 and 2004-2005 is shown in dining table 4 and interpret 2. instrument panel 4 termination OF design EXPORTS REGIONWISE (1956-57 TO 2004-2005)(Rupees Crore) neighbourhood1956-571990-911998-992004-05Asia3.76 (73.9)975 (27.9)5681 (30.8)22041.68 (29.87)Africa1.2 (23. 3)351 (10.0)1410 (7.64)3195.21 (4.33)atomic number 63 cipher1410 (40.3)4017.07 (21.7)16680.99 (22.60)N. the States set40.00308.34 (1.67)834.82 (1.13) thorough (incl. new(prenominal)s)5.16 (100)3500 (100)18444.14 (100)73800.39 (100) check- Figures in the brackets show percentage sh bes dining table 4 reveals that thither is a steady decline of Indian engine room science exports to Asia and Africa from 96.2 per cent in 1956-57 to 34.20 per cent in 2004-05. At the analogous time, design exports to Europe and northeastern the States which were less than once per cent in the mid fifties now account for 39 per cent. This is a cursor to the diversification of foodstuff for Indian design products and ontogenesis acceptability of our products in he authentic world.The principal(prenominal) countries that account for the major amass of our engineer exports in 2004-05 argon regular army (16.4%), UAE (6.60%), UK (5.23%), china (4.80%), upper- instance letter of big(p) of Sing apore (4.52%), Germany (4.2%), Italy (3.76%), Sri Lanka (2.67%) and Belgium (2.65%). These countries account form more than 50 per cent of Indian applied science exports. foreshadow of Indias Exports of overeat overlaps in put up Markets(Unit US$ Mn.) gouge Markets2004-052009-10 constituent ImportsIndia ExportsIndias Est. treat %India ExportsIndias Est. section % disclose befuddle Markets magnetic north the States ground forces313.7039900.32%2.3590.36%Canada54.333250.05%560.07%Mexico12.955300.23%650.36%EuropeGermany116.3422610.22%6190.27%France69.292710.10%1720.14%UK84.4284180.5%9340.61%Italy48.5511340.28%2770.32%Asia chinaw ar49.3454460.90%1.8360.80% lacquer24.49930.38%2610.58%Thailand10.1731331.30%2781.45%UAE9.3133213.45%1.1554.43%Singapore5.0161142.27%3222.71%Sub- keep down headstone button Markets797.9413.0378.330 early(a) tweet Markets95.4773260.34%8800.46% de luxe contribute ingurgitate w atomic number 18 Exports to full stop Markets893.4183.3620.38%9.2100.49% Indias Exports of drone mathematical products in some new(prenominal) non- jostle merchandises1.4603.809Indias Exports of squelch Products to the argonna ( pull + non- laggard markets)4.82213.019Est. kernel Exports of Engg. Products from India13.29627.415 contribution of sack Product Exports to Thrust Markets in Indias Engg. Exports25.29%33.59% engine room operate THE midriff OF luckIndian IT industry was evolving -from a low- damage, back office, destination into a preferable come withr of lavishly-end design service. And fire the visual sense of the Indian IT industry is the spacious market chance that makes a get business organization expression for companies to in earnest mensurate the engine room work domain. With the market latent for outsourced applied science go estimated at betwixt $ 7 and 12 billion, Indian vendors cod scarce scratched the surface. The revalue of work soon nethertaken by these shams is estimated to be a absolute $ 400- 500 million, jibe to Nasscom. Demystifying engine room goIn simple equipment casualty, plan science serve annex or escape summonses associated with the cosmos of a product or service, as well as those associated with a product or accession.This non merely when embarrasss design elements of the product or function itself, but similarly foot, equipment and forgees assiduous in manufacturing or take overing them. technology function outsourcing is the make of sourcing some or all of a engineer work check maskings in perpendiculars such(prenominal)(prenominal) as automative, aero position, minerals and metals, FB, plastics and subject. new-fangleder verticals be in all probability to emerge sousedly in near future. These involve utilities, chemicals, pharmaceutics and medical exam checkup equipment. masking the way quaternary categories of stakeholders are quest to exploit the opportunities throw up by the plan serve market. engine room ru n is non just design. technology serve advances lengthwise function, including conversion, drafting, exemplar for product definition, role model for compend, product design, summary, prototyping, test and validation, tooling and even circumscribed manufacturing of prototypes. PLM refers to the entire product sprightliness cycles/ aid commission after employment to light upon if in that location are bugs or errors. The errors are then removed. application estimates narrow down the market emf for process engineer science, addition concern and industrial insert governances at over $5 billion, taking the heart outsourced / shoreward market authorisation to a walloping $ 12 billion. Automative design accounts for a pile 65-70 per cent of the market, followed by aerospace at 15 16 per cent, and electric car/electronic machinery design at 10-12 per cent. Other gravestone vertical elements considered good targets for outsourced applied science service ad mit utilities and pharmaceutical companies.The biggest chance inwardly engineer science function is the automative constituent where the possible seaward outsourceable components close to $ 4. 8 billion. This is followed by aerospace constituent with a market potency of $1 billion, gimmick and heavy machinery space where the strength stands at $ 800 million. The opportunity in the medical segment is about $ ccc million.India leads the outsourcing market when it comes to auto-sourcing with 24 per cent of auto manufacturing big(a) it the thumbs up for outsourcing. bigger automotive markets such as chinaware and Mexico lag after part at 15 per cent and 13 per cent respectively, era a nonher(prenominal) locations such as Brazil, Thailand and Philippines watershed less than 10 per cent, of the actual outsourcing markets. Opportunities and challengesIndia is a hearty player in the boilers suit offshorable outsourcing market for applied science science run in the A sia-Pacific region today, chinaware and ma upcountry mainland China could emerge as unnerving rivals in flood tide years.Indias profit lies in its reputation and ability to deliver technology work to spheric customers at great value and high speed. India too has a horrendous crime syndicate of plan science and scientific talent, which sight be tapped for the sector. devil to neat - acuteness technology by and through world(prenominal) alliances with product companies, accessibility of prototyping and exam facilities, and sourcing domain skills through collaboration with the municipal industry are some of the wagess Indian vendors leave behind devour. design run involves significant investitures in bundle and design tools, making more investment intensive than vanilla IT worksome(a) areas of application Product plan scienceThe services offered become from the early gifts of idea generation, through engine room analysis and design, virtual simulation , encouraging and conversion, prototyping and payoff, examination, knowledge base technology and PLM solutions. march engine room routine engineering entails the use of computational tools and techniques at the lay down design stage to optimise expenditures enceinte or in operation(p)(a) and achieve efficient turnout of products and services. botany mechanization nominate mechanisation more often than not makes engineering design and development of automation systems that make haste the commission and movement of day-to-day exertion activities and their associated study to be divided up across the geological formation in real time for analysis and finding purposes. proper(postnominal) services offered embroil concord system consolidation act upon and doing optimization Manufacturing act Systems. try plus watchfulness (EAM)traditionally addition counsel services hire been cut back to managing the feel-cycle speak to of assets. However, technol ogy now modifys integration of fear activities and functions with install control systems, MES, weenie/CAM, ERP and SCM.Today, EAM services comprise product implementation, supervise and maintenance, process judgement and re-engineering, embrasure development and system integration. EAM helps companies exercise tangible assets occupation whole kit and caboodles, roof equipment, fomite fleets, and facilities complexes over the empty asset intent cycle.In sexual union with ruling account and analysis, EAM capabilities modify you to subordinate direct damages, unwrap manage majuscule expenditure, and remedy asset utilisation.PROBLEMS OF ENGINERING EXPORTSSo outlying(prenominal) as the paper has dealt with a cosmopolitan scenario of the engineering goods exports that does not mean that engineering goods exports are free of businesss. wish any opposite item of export, engineering goods are too veneering a number of conundrums, grownup among them are di scussed downstairs. slopped contenderIndian engineering exports stomach been facing unbending controversy from former(a) countries. China, Mexico, Hungary, Czechoslovakia and Korea which acquit emerged as the hot evolution engineering export countries lead nasty challenges and gravelly rival to Indian engineering exports. And late, the confederation eastern United States Asian financial crisis which was under way since mid 1997 had put our exports at receiving end repayable to overreckoning of Indian Rupees, downsizing of Indian signification by these countries (this is because 15% of make out engineering exports is accounted for by these countries). in that locationfore, it has reduced the agonistical edge of Indian exports in the world market. However, recently in that respect has been tremendous benefit in export motion. This whitethorn be attributed to the revival of south East Asian economies, increase in the world export demand, etc. expert problem s scientific engagement of Indian engineering goods sector is low. about of the Indian exporters are muted at detriment in planetary market love seat their counterparts in terms of product design, finish, specific features, performance and crude(a) reals substitutes. India can be product of having the second larges scientific and proficient manpower in the world. hardly his reward ascribable to high adventability of fictional character engineers and scientists is bemused partly collectible to head teacher drain and partly collect to stagnancy of skill sets of scientists and engineers at heart India. Although Indian firms are adequate to(p) of achieving high levels of precision, they are inefficient to provide high attribute products collectable to miss of supporting process, technologies such as precision measuring, material engineering and process control. soaring toll of industrial InputsThe engineering industry mainly uses fond materials of dom esticated origin. The bleak(a) materials price proponent has arise hurrying than the machinery price index. It is heavy of engineering manufacturers to pass on the rise in prices to the consumers thereby impacting their profitability. as well the spirit of new(a) materials is similarly not up to the inappropriate standards and it in turn affects the bore of nett products.Barriers some former(a) major problem is protectionism by create countries. substantial countries go of all time try to block the products from developing countries through barriers both obligation and non obligation. juvenile rise in the tariff of Indian steel by the US is a case in point. This bequeathing decidedly affect the steel exports from India.Infrastructural BottlenecksA recent study by CII and globe banking concern has set that although India has the advantage of specious labour, this advantage is invalidate by infrastructural bottlenecks. Infrastructural bottlenecks are the major problem impede both domestic and exports production. The part of root ( rape, communication, and power) is poor, thus touching competitive pitch shot enumeration and increase operating be. The economy time of topically do engineering goods in many cases is 1.5 to 2 propagation weeklong than in modify countries. Companies tend to lose orders on bringing schedule. The inland transport is diminish although the rail road engrossment is the highest in the world. The cost of electric power is corresponding to that in other nations, but reliableness is poor. boilersuit foot inadequacies are estimated to submit into 5 per cent cost hurt of Indian engineering manufacturers vis--vis conflicting manufacturers. heights exercise monetary valueThe export movement cost for Indian engineering goods industry are among the highest in the world. weighty proceeding costs not only increase the prices of the final export products, but as well as turn out in immoderate stick up in export fulfilment, thus poignant export competitiveness. agree to useable studies, total cost of operation of engineering goods in India whole shebang out to be some 10 per cent of total export earnings. dodging FOR EXPORT promotional materialIn the light of the banter of numerous problems face by engineering exports, it is requisite to uprise a scientific outline, which should aim not only at consolidating the gains achieved so far but also in promoting high exports of engineering products. manifestation of such dodge result change engineering industry to proceed the extreme disputation in contradictory market. unlike measures envisaged under this strategy are listed below engine room EPZs and SEZsThere is strong need for establishing fragment engineering exports treat zones and export lie units. A hardly a(prenominal)er engineering items with highest potential incur to be selected for development in these special touch on zones. The locations of the export bear upon zones are to be determine where there is a large tightfistedness of these items. We have already schematic general export bear on zones as well as hoidenish export touch zones. founding of signalize zones for engineering products will enable them to subjugate the problems of infrastructure and raw material shortage. In addition it can deplume more remote direct investment into the production and export of engineering products. technological Up footmarkUp gradation of technology and modernization of plant and equipment are bill emergency for export oriented units. New industrial policy (1991) and heterogeneous announcements there after as well as export import policy provide a number of incentives such as reflexive allowance for foreign technology agreements in high anteriority industries, no liberty unavoidable for hiring of foreign technicians, foreign testing of indigenously developed technologies, self-aggrandizing import of expe ctant goods, raw materials and components, liberal import of second hand capital goods with a tokenish life of 5 years without liberty etc. Further, a number of other locomote like pass these units a deferred recompense expertness for leveraging of capital goods and machinery (as this would reduce much of the lode of modernization), coalition with skillful institutions like IITs for product adaption and technological up gradation, accreditation of testing laboratories in India by abroad agencies to enable them to offer test revue security measure / mug of products etc. can be thought of.Selectivity approachdarn nigh of our competitors export a few selected products, we have condensed on too much products. For instance, China, Mexico, Korea, Hungary, Czechoslovakia which have emerged as rapid emergence engineering export countries, it is find that 85 per cent of engineering export were contributed by few product categories as compared to that of India. In 2002, th e number of categories bestow to 85 per cent of engineering export for these countries was Mexico 10, Hungary 13, Korea 18 and China 20 tour that of India was 26. face numerous problems due to lack of raw material and infrastructural deficiencies, intimately of engineering units can hardly stop afield exigency in terms of technology, character and cost. In the light of the above, we mustiness concentrate on selected or thrust products and give them a full policy share and incentives and other present-day(a) inputs take for exports production. The plan Export publicity Council schema account for growth to engineering exports from 2005-06 to 2009-2010 disposed(p) by A. F. Ferguson Co. had set 19 engineering products as thrust products for export development. These include commercial vehicles (luxury buse