India's engineering exports jumped about 26 per cent to USD 3.21 billion in July

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year-on- year, mainly due to revival in the US demand.

"Demand is reviving in the US, but still there are less orders from the European markets," Engineering Export Promotion Council (EEPC) Executive Director R Maitra said.

Exporters fear that crisis in the European markets may impact orders from the region, he added.

Of the total USD 32.5 billion engineering exports in 2009-10, EU accounted for about 30 per cent.

Engineering exports, which had come under a severe impact of global slowdown last year are showing recovery at a faster pace than the total exports from the country.

To reduce dependence on traditional markets like the US and Europe, engineering exporters are exploring new destinations in regions like Southeast Asia, Middle East and Latin America.

Engineering exports include heavy engineering goods, transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.