The Engineering Export Promotion Council (EEPC) of India has attributed the 9 percent rise in engineering exports and shipments to Australia and the United Arab Emirates (UAE) between April-August 2023 to FTAs (Free Trade Agreements) signed with both these countries.
Noting that engineering exports to Australia and UAE rose during the period which was otherwise marked as a period of decline for export of engineering goods, EEPC India has urged the Centre to sign FTAs with non-traditional markets like South America and Africa to boost export prospects.
Engineering exports to UAE in the April-August period of FY24 increased 9 percent year-on-year to $2.24 billion. In the same period, engineering exports to Australia also jumped 9 percent year-on-year and stood at $596.14 million compared to $548.62 million in the April-August period of FY23.
However, overall engineering exports in the April-August period of FY 2023-24 dropped 4.55 percent to $44.62 billion, compared to $46.74 billion in the April-August period of 2022-23. Engineering exports to Russia have also surged 178 percent year-on-year to $568.41 million in the April-August period of FY24, compared to $204.17 million last year.
However, engineering exports to the United States, India’s top market, fell 14 percent year-on-year in the April-August period of the current financial year.
Describing India's engineering export demand as "significantly affected," EEPC India termed the current fiscal as tough for engineering exports due to the Russia-Ukraine war and the impact of a global slowdown in the US, Europe and China.
Stating that 19 out of 34 engineering panels recorded positive YoY growth on cumulative terms during the period of April-August in FY24, the engineering exporters body pointed out that a growth in exports was observed in copper and products, lead and tin, industrial machinery, pumps, machine tools, aircraft and spacecraft, electrical machinery and equipment, auto components/parts, medical devices, instruments and construction machinery.
India's engineering exports in August 2023 were recorded at $9.05 billion, as against $8.40 billion in August 2022. After eight straight months of year-on-year decline from December 2022 to July 2023, India’s engineering exports were back to growth in August 2023 registering a decent 7.73 percent growth over August 2022 owing mainly to a lower statistical base.
EEPC India said that region-wise, positive year-on-year growth in August 2023 was noted in CIS, Other European countries, WANA, NE Asia, EU, SSA (Sub-Saharan Africa), and Oceania, while the regions witnessing a drop in exports during August 2023 included North America, ASEAN countries, South Asia and Latin America.
According to the Quick Estimates of the Department of Commerce, the share of engineering exports in India’s total merchandise exports was 26.26 percent in August 2023.
(Edited by : Ayushi Agarwal)
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