Engineering exporters are pitching for free trade pacts with Latin American and African nations, with traditional export market witnessing slump in demand. It is also part of a strategy to diversify the market for Indian goods.

“It is quite crucial for India to explore new markets, especially in Latin American and African countries. Many of our competitors have already established FTAs with these countries and as a result, are having a competitive edge over us. The FTAs with these countries can level the playing field, ensure fair market access and expand our exports,” EEPC India chairman Arun Kumar Garodia said.

The Engineering Export Promotion Council (EEPC) India has come out with a strategy paper, which stressed on the importance of expanding market access and reducing risks associated with economic uncertainties.

At present, around 40 countries account for over 87 per cent of India’s engineering exports.

With the world economy expected to slow down this financial year, India must strengthen its presence in Europe by implementing an FTA with the European Union to help expand the current market base, and mitigate the potential downturn in engineering exports, EEPC said.

The engineering sector is a significant contributor to India’s economy, accounting for 25 per cent of total exports.