Hannover/Germany, April 8: India attaches "great significance" to Malaysia which has emerged as a "very important market" within the Asean region of India's engineerng products.
This assessment was given by a senior official of India's engineering export council in an interview with Bernama at the ongoing Hannover Industrial Fair where India, China, Taiwan and South Korea have large contingents of exhibitors running to more than a hundred each.
Malaysia has 16 exhibitors at the show which is rated as the world's most important showcase of a wide range of industrial products.
"Malaysia is an important market for Indian engineering goods which are characterised by a high level of sophistication.
"Malaysia, which has a good industrial base, also provides access to a large hinterland market, thanks to its well-developed infrastructure and a robust distribution network," said Bhaskar Sarkar, the additional executive director and secretary of EEPC India, the agency that promotes India's engineering goods exports.
After the slump year 2009 when demand fell because of domestic downturn in local markets, India's exports of engineering products dramatically surged to the Asean region, including Malaysia.
While Malaysia's imports of Indian engineering products in the 2009/10 fiscal amounted to USD 985.63 million, India's exports of these products to Malaysia in the six-month period from April to October in the fiscal 2010/11 jumped to USD 1.237 billion.
In fact, Malaysia became the largest importing nation within the Asean region of Indian engineering goods.
Malaysia's imports surpassed that of Singapore (USD 1.197 billion) and Indonesia (USD 600.9 million) in the April-October 2010 period.
India's engineering goods currently showcased at the Hannover show include sub-contracting and industrial supplies, parts and components used in the energy sector for industrial production and other finished products.
Engineering goods exports alone amounted to USD 57 billion annually, and include base products used for producing castings, forgings, industrial machinery, machine tools and automobile components.
According to Sarkar, the share of engineering goods in India's overall exports has increased from 20 to 25 per cent, with the United States as the biggest market, followed by the European Union and Asean region.