Engineering goods exporters are not hopeful of recovery in demand in the international market in the coming months, the official said.
Exporters are pinning their hopes on revival of demand in the major markets due to large stimulus packages. However, at best, only tentative revival signs have been perceived in select export destinations.
The government had announced several measures to revive exports including 2 per cent interest subsidy, duty-free import of capital goods and had extended income tax holiday for export units for one more year.
The sector, which had contributed $37.5 billion in India's total exports of $168 billion in 2008-09, employs over 40 lakh people.
India's overall exports have been contracting for the last 11th month in August to about 20 per cent.