EEPC sees big opportunities from Ukraine reconstruction 

The Engineering Export Promotion Council (EEPC) sees big opportunities emerging from reconstruction of Ukraine and Russia. 

The Council’s Chairman, Arun Garodia, told a press conference here that he “read somewhere” that reconstruction of Ukraine would cost $1 trillion, but regardless of the number, big export opportunities would come up as and when the country builds itself back to normalcy, once the war with Russia ceases. 

“Ukraine wants to buy from us; Russia also wants to buy from us,” Garodia said, expressing hope that the Russia-Ukraine war would soon end, after Donald Trump becomes the President of USA. He observed that India had maintained friendly relations with both the warring nations. 

At a press conference here today, for announcing the holding of EEPC’s flagship event, the International Engineering Sourcing Show (IESS), in Chennai between November 27 and 29, Garodia said most countries preferred to buy from India rather than from China. 

Asked if the Council had started preparing for the Ukraine opportunities, Gadoria said that there had been some discussions around that. 

He said that India’s exports of engineering goods (including metals like steel and aluminium) in 2024-25would definitely cross the $ 118 billion-mark, compared with $ 109 b in 2023-24, and could even go as high as $ 125 billion. 

In the April – September period, India’s engineering goods exports rose 5.3 per cent, to $ 56 billion. Since, typically the second half of the year does better, this year’s exports would easily cross $ 118 b, said Adhip Mitra, Executive Director & Secretary, EEPC. 

$300 billion target far fetched?

The government of India has set a target of $300 billion for 2030 and $1.5 trillion for 2047, for engineering exports. Asked if these were not too high to be a meaningful target, asking for nearly tripling current exports in 5 years, Garodia said that though they were high, they were not infeasible. 

He said that the government had fixed the targets after consultations with the industry. The idea is that the emerging sectors such as renewable energy, and electric vehicles, provided room for growth, not to speak of opportunities from Ukraine and Russia. 

The Trump effect 

Garodia pointed out that in his first term as the US President, Donald Trump, exercised his power under Section 232 of the Trade Expansion Act, 1962, to impose 25 per cent tariff on—on all countries with the exception of Canada and Mexico, but mainly targeting China.

However, after imports from China continued, he brought in additional tariffs exclusively on China, under Section 301. This policy continued under the Biden administration, which, only on September 27, 2024, finalized additional tariffs on China under Section 301. 

With Donald Trump back as the President, there would be stiff tariffs against China, which would help India, Garodia said.