In the last decade the Government of India has introduced a number of schemes such as PLI or Production Linked Incentive Scheme, Atmanirbhar Bharat, etc. to boost India’s manu­facturing ability. The schemes have been target­ed to make India a global manufacturing hub. Accordingly the government has set a target to achieve USD 1 trillion merchandise exports by 2030. While these are positive steps towards de­veloping India’s manufacturing prowess, there are several external factors that pose risk to In­dia’s manufacturing sector and climate change is one such factor that affects India’s manufactur­ing sector significantly. Climate change’s impact on manufacturing can be manifested as a risk to local value chains. It can also take the form of non-tariff barriers by major import destinations which could be disastrous for exports. As per a recent article in the Journal, Global Change Biol­ogy, it is stated that labour productivity in South Asian countries including India may decline by 40% due to climate change and excessive heat. Simultaneously exporters are also expressing concerns regarding the introduction of CBAM or Carbon Border Assessment Tax by EU on cer­tain imported products which include steel and aluminium. Many other countries especially de­veloped nations may follow suit soon and bring their or carbon tax. Infact Germany has already introduced Low Emission Steel Standard (LESS) which could present new challenges for the Indi­an steel industry.

Given this backdrop, it is imperative that EEPC India increases its focus on climate change and sustainable manufacturing. Hence this has been the main focus of this year’s IESS – 12th edition of the largest engineering sourcing show in In­dia. This year the show is happening in Chennai and it moto is “#Smartsustainable engineering”. The three day event happening between 27th and 29th November is bringing a range of prod­ucts with smart and sustainable manufacturing.

Now it’s time for a peak into the current ex­port figures of the engineering sector. India’s engineering exports continued its stellar per­formance for the fifth consecutive month in September 2024 with a growth rate of 10.55% in monthly terms and 5.25% in cumulative terms. The increase was majorly continued by industrial machinery, electrical machinery, au­tomobile and auto components, medical devic­es, etc. Decline in both monthly and cumulative (April-September 2024) terms was evident in the ferrous and non-ferrous metal sector. This can be mainly attributed to global uncertainties, shifting trade policies and in some instances ris­ing domestic demand. The performance of the industry is also reflective of the current global trade trends. The recent WTO global update has also been positive despite potential setbacks trig­gered by geopolitical conflicts. WTO revised the projected growth rate of global trade in goods in 2024 from the last 2.6% to 2.7%. The WTO how­ever cautions that despite the positive outlook, governments and industries should be cautious as rising geopolitical tensions and increased economic policy uncertainty continue to pose substantial downside risks to the forecast. We are thankful to the government for their timely support and urge them to continue assisting the industry in these volatile times.

Finally, as EEPC India completes its eventful journey of 70 years, it is determined in its mis­sion to help in the growth of Indian engineering sector and stabilise its position in global mar­kets. While we are organising the IESS, we are also participating in a number of international exhibitions in the coming months. Some of the major events which are coming up include Gulfood Manufacturing 2024 to be held in Dubai, Elmia Subcontractor 2024 to be held in Sweden, Mach & tools Saudi 2024 and Gulf 4P to be held in Dubai, Vinamac to be held in Vietnam. Apart from that keeping the issues of sustainability and smart manufacturing, EEPC India is also partic­ipating in International Conference on Circular Economy to be held in Mumbai. All the details of these events are available in EEPC India web­site. I invite all the exporters to participate in the exhibitions relevant to their products to expand their market reach. I also want to take this op­portunity to wish the EEPC Team best wishes for the successful organisation of this year’s IESS.

Mr. Pankaj Chadha