The Engineering Export Promotion Council of India (EEPC) on Thursday expressed concern over sharp decline in the gross bank credit deployment in the export sector.

“Against a gross credit deployment of Rs 434 billion till end October, 2017, the figures dropped by 54.6 per cent year on year to Rs 197 billion in 2018, " EEPC said.

"While there may be several global factors such as trade war between the US and China, uncertainties over Brexit hitting the export demand, the cost of credit remains a big concern for us," EEPC India Chairman Ravi Sehgal said in a statement.

The exporters' body said subdued credit flow has been witnessed in the engineering segment as well.

"The year-on-year growth of the bank credit to the engineering sector could grow merely by 4.6 per cent by the end of October 2018," he said.

"While there may be several global factors such as trade war between the US and China, uncertainties over Brexit hitting the export demand, the cost of credit remains a big concern for us," EEPC India Chairman Ravi Sehgal said in a statement.

"Ironically, these irritants are surfacing at a time when the going is difficult in the global market due to trade tensions between the US and China and other issues like Brexit," he added.