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With seven of India’s top 25 engineering exports destinations are from EU, any upheaval in Europe following Brexit could have an impact on the exporters who are alrea-dy in a state of distress, according to an Enginee-ring Export Promotion Council of India (EEPC) analysis.

India’s total engineering exports to top 25 destinations, which account for 75 per cent of the country’s total engineering product shipments, aggr-egated to $7.6 billion for the April-May period of the current fiscal. Of this, EU members contributed $1.5 billion with the UK emerging as the number one destination among the EU members, followed by Germany, EEPC said in a recent paper.

“Seven of our 25 destinations are from EU. So, any upheaval in the entire market as a result of the political division with wide economic ramifications on the trade, investment and currency movement should be a cause of worry for us,” said EEPC chairman T.S. Bhasin.

Though a two-year window of negotiations for the exit of Britain is available, he said the current indications point towards extreme political stand by a divided British polity and the EU leadership.

EEPC India paper said China may take pro-active steps and peg its currency to its advantage and benefit from the emerging situation in the European market. “India too should keep a close watch on the unfolding situation,” it said.