Indian companies should explore engineering and construction projects in developed countries like the United States because it carries less risk and gives a better rating, Commerce and Industry Minister Piyush Goyal said on Thursday. .
He was referring to project exports which also include the export of engineering consultancy.
“We should not necessarily focus only on projects for which there is government funding or government lines of credit or which are third world, backward or less developed countries. My feeling is that if someone gets a project in Europe, in the US the risks are much lower and you can assess your finances better. This will reduce your capital requirements with high credit rating of projects in developed countries,” Goyal said at an event organized by Export Import Bank of India (EXIM).
According to the minister, Exim Bank can conduct a study on restrictions in the developed world, how to improve Indian companies’ access to project exports, what are the restrictions in their government contracts, among others. Apart from this, market access issues for project exports can be resolved by the government through free trade agreements which India is currently negotiating and preparing.
Regarding exports of goods, the Minister said that despite headwinds for Omicron’s international trade, supply chain disruptions and geopolitical disputes, India has been exporting goods worth $38 billion in April, showing that the country is on a path of growth and recovery. .
“There are serious concerns about overall supply chain disruptions as any location is in lockdown, we don’t know the ramifications this will cause. Of course, the Ukraine-Russia conflict cannot be ignored and it is at a very critical time with a lot of confusion and complications in our international trade at the moment,” he said.