Drag Down Hand Tool Exports From North India by 20 Percent in 2012-13

The slowdown in the United States and Europe is likely to drag down hand tool exports from north India by 20 percent in 2012-13, compared to the previous year, exporters said Friday. Most of these exporters are located in India's northern state of Punjab's districts of Jalandhar and Ludhiana. The state's hand tool industry accounts for 70 to 80 percent of India's total hand tool exports, with small and medium-sized enterprises (SMEs) playing a dominant role. Final export data for 2011 to 2012 is yet to be compiled but according to the Engineering Export Promotion Council, exports will be around 20 per cent higher than in 2010 to 2011, when they stood at 11.5 billion rupees ($209 million). "Exports of hand tools from India will be impacted by the current slowdown and since Punjab is one of the major exporters of hand tools, the impact of the slowdown will be apparent. It is premature to state the quantum of impact but it would be around 20 per cent," S. C. Ralhan, a hand tool manufacturer, told Xinhua over telephone. Sharing his view, Deputy Director of the Engineering Export Promotion Council Opinder Singh said, "Exporters managed to get some new orders this year but the quantum of new orders was not on a par with what they got last year, as buyers were still hesitant to place new orders. Going by the trend and considering the slowdown in some of the major economies of the world, we expect the impact to be 15 to 20 per cent." The hand tool industry of Punjab employ around 60,000 people and comprise about 350 units, mostly SMEs. The major export markets are the United States and the European Union, which account for 50 per cent of total exports from the state. The buyers are major retail chains like Wal Mart, B & Q and Home Depot. Other than the slow-down in the West, a number of other factors are also hurting the industry. President of the Northern Chamber of Medium and Small Industries, Sharad Aggarwal, said, "We are not in a position to deliver orders in time due to the erratic power supply, as we are facing scheduled as well as unscheduled power cuts." Ralhan said the apathy of the state government is also responsible for negative growth. "The pollution control department has shifted the hand tool industry from the green category to the red category, which is not good for the industry. The hand tool industry is not a polluting industry, as a lot of manufacturers are switching over to gas and the rest are running on electricity, "he said. Source: GlobalTimes