“Rupee getting stronger day by day and steel prices rising since protections, both hurting engineering exports and Bengal industry is suffering,” Bharat Chamber of Commerce President and engineering manufacturer cum exporter, Rakesh Shah said.
He said that the impact of rising steel price on engineering export of around $5 billion from this part of the country was high due to lower value addition like sanitary casting.
On top of these, the ‘Made in USA’ push is also going to eat up the existing export pie, Shah said.
“In the last one year, exports are down by 10-12 per cent”, Shah said.
“If Rupee and other factors do not ease out, we will face further slide which would definitely hurt local employment,” Shah added.
In Bengal, most of the units are in MSME sector and direct employment runs into thousands.
EEPC had also a few days ago raised concern over the probable rise of steel prices after the new National Steel Policy and said that there should be a price reimbursement scheme for domestic exporters and the Duty Free Import Authorization Scheme (DFIA) should allow imports of steel without paying any duty including anti-dumping or safeguard duty.
Source: Financial Express