Punjab's exports hit by Euro crisis
Exports from Punjab have taken a hit due to the ongoing Euro debt crisis, with exporters of hand tools, sports goods, honey and woollen products complaining of decline in new orders by up to 25% in the past few months.Updated: May 17, 2012 20:21 IST
Exports from Punjab have taken a hit due to the ongoing Euro debt crisis, with exporters of hand tools, sports goods, honey and woollen products complaining of decline in new orders by up to 25% in the past few months.
"The exports are on downswing especially towards European countries because of debt crisis in Euro Zone. As a result, new export orders for engineering items are hard to come by," Engineering Export Promotion Council regional chairman SC Ralhan told PTI on Thursday.
Hand tools, which is a major export item to European countries, has taken a beating with new orders shrinking by 15-20%, according to exporters.
"Our orders for hand tools like spanner from eastern and western Europe has fallen by up to 20% in the last couple of months and it seems that the situation is not going to be business friendly in coming months," said Ralhan, who is also a Ludhiana-based exporter of hand tools.
Hand tools exports to the tune of Rs 800 crore is undertaken annually from Punjab, with Europe constituting about 40% of it.
Sports goods industry has also seen export orders waning in the wake of economic crisis in European countries.
Jalandhar is famous for manufacture of sports gear and its annual exports, including to Europe, US, Australia and New Zealand, is pegged at Rs 250 crore to Rs 300 crore.
Punjab is one of the largest producers of honey in the country and contributes almost 25% of country's honey production. It also undertakes large exports of the commodity.
Wool and woolen exports from Punjab has also not been encouraging.
"New orders from several countries in Europe have come down by 20 to 25 % amid high degree of uncertainty existing in these countries. We have seen that buyers at our exhibitions are reluctant to place new orders," said wool and woollen exports promotion council chairman Ashok Jaidka.
First Published: May 17, 2012 20:19 IST