CALCUTTA, June 23: A recent study conducted by the Engineering Export Promotion Council's office at Dusseldorf in Germany has revealed that Indian goods have good potential in the sub-contracting sector.

In a press release, EEPC chairman P K Shah said that Germany has the largest sub-contracting market in the European Union worth $80 billion, followed by France with $40 billion, Italy $27 billion and Spain $19 billion.

The maximum scope for sub-contracting is offered by the automobile parts manufacturing sector, followed by the aeronautic industry, railways, agriculture and excavation equipment manufacturing sectors, electrical, electronic and mechanical engineering and household appliances sectors.

In 1996, India's engineering exports to Germany increased 57.91 per cent from $250 million to $396 billion. Major items of export are electric motors, transformers, generators, electrical fittings and accessories, motor vehicles and parts, textile, leather, office and other machinery, steel materials and iron and steel products including castings and forgings, bicycles and parts, power engines and machine tools.

Shah said vigourous promotional drive had helped to increase the demand for Indian goods.

He also advised Indian exporters to participate in the Hanover Fair '98 besides establishing contacts with the original equipment manufacturers and advertising in trade journals.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.