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Engineering Export Promotion Council of India (EEPC India) has expressed concern that the spread of Omicron, the new variant of coronavirus, may once again disrupt the global supply chain, which could lead to a slowdown in trading activities.

EEPC India chairman Mahesh Desai said exports of engineering goods registered a 38 per cent year-on-year growth in December, 2021 to $38.4 billion. He noted that the sustained growth momentum demonstrates the sector is well on track to grow its market share in the global trade. He called for urgent action on part of the government to reduce soaring raw material prices and logistics costs.

He said ‘we hope that in the upcoming budget, the government will take appropriate measures to reduce the cost of primary steel, copper, aluminium and other raw materials. This will be a major relief for the sector which is dominated by micro, small and medium enterprises.’ He added that some policy push now would keep the industry ready to take challenges in future and set higher export targets next financial year.