Indian engineering exposition closes with high expectations

Indian engineering exposition closes with high expectations

The Jakarta Post, Jakarta

Ranging from aluminum home appliances to three-wheeler vehicles,
the Indian engineering expo Indiatech 2005 here was a showcase of
the country's manufacturing industry.

Organized by the Engineering Export Promotion Council (EEPC)
of India at the Jakarta Convention Center, the four-day
exhibition ended on Saturday, booking about US$5 million in
business inquiries between firms from both countries.

"There have been confirmed contracts of $487,000 during the
exhibition with automotive components, sewing machines and X-ray
machines as majority products," said EEPC chairman Rakesh Shah
after the closing of the event.

In addition to the confirmed deals, there were several other
inquiries, he added.

Aside from the trade during the expo, several Indian companies
had previously reported new investments in Indonesia. Two of the
companies were automotive companies Bajaj Auto Ltd. and TVS Motor
Co., with one major Indian public company IRCON currently
executing a road construction project in Indonesia.

According to the Investment Coordinating Board (BKPM), Indian
foreign direct investment (FDI) approval reached $66.7 million
last year. Meanwhile, two-way trade between the two countries
increased from $2.4 billion in 2003 to $2.91 billion in the first
11 months last year.

However, it is the India's engineering export to Indonesia in
particular that has been the most impressive in recent years.
Last year, it grew by more than 30 percent, thanks in part to the
rapid growth of India's engineering sector in terms of value --
from $3.761 billion in 1995/1996 to $10.7 billion in 2003/2004.

"The growth has been enormous, especially compared to only $10
million worth of engineering exports in the 1950s," Shah said.

The extensive growth is partly be attributable to the support
provided by the Indian government, notably in empowering and
developing SMEs operating in the manufacturing sector through
various forms of incentives.

Besides providing direct subsidies, the Indian government also
provides exemption for certain excise duties for an establishment
with a turnover of up to 10 million rupees ($215,285) while also
setting up several industrial zones for certain export -and
import- bound products.

The closing of the exhibition, Shah forecasts, should pave the
way for stronger investment and trade cooperation between the
region's giants.

"I do not expect anything big to happen in the next six months
but by three years, you'll find India as your major trading
partner," Shah said. (003/004)