Even as Indian goods exports to the rest of the world are slowing, engineering goods exports to Russia and other CIS countries have registered a sharp uptick, jumping nearly three times from June last year, exporters said.
Even as Indian goods exports to the rest of the world are slowing, engineering goods exports to Russia and other CIS countries have registered a sharp uptick, jumping nearly three times from June last year, exporters said.
The Russia-Ukraine war, which entered its 18th month, has caused food and fuel prices to spike while creating a slump in demand for goods and services in the West. Indian goods exports have now declined for six consecutive months.
The Russia-Ukraine war, which entered its 18th month, has caused food and fuel prices to spike while creating a slump in demand for goods and services in the West. Indian goods exports have now declined for six consecutive months.
India’s engineering exports to many key markets, especially the US, EU, and China continued a declining trend in June 2023, while shipments to West Asia and North Africa (WANA), North East Asia and CIS countries recorded positive growth during this period.
India’s engineering exports to many key markets, especially the US, EU, and China continued a declining trend in June 2023, while shipments to West Asia and North Africa (WANA), North East Asia and CIS countries recorded positive growth during this period.
“Engineering exports to Russia almost tripled in June 2023 and stood at $116.9 million. In cumulative terms, exports jumped four-fold during the April-June period of the current fiscal to $337.4 million from $89.7 million in the same period of FY23,” Engineering Exports Promotion Council (EEPC) said.
“Engineering exports to Russia almost tripled in June 2023 and stood at $116.9 million. In cumulative terms, exports jumped four-fold during the April-June period of the current fiscal to $337.4 million from $89.7 million in the same period of FY23,” Engineering Exports Promotion Council (EEPC) said.
The latest data shows engineering exports to the US fell 12.5% to $1.45 billion from $1.65 billion in the same month last year. On a cumulative basis, the decline was even sharper with total shipments value coming in at $4.30 billion during April-June 2023-24, as against $5.32 billion in the same period last year.
The latest data shows engineering exports to the US fell 12.5% to $1.45 billion from $1.65 billion in the same month last year. On a cumulative basis, the decline was even sharper with total shipments value coming in at $4.30 billion during April-June 2023-24, as against $5.32 billion in the same period last year.
Engineering exports to the European Union (EU) fell as much as 16.2% year-on-year to $1.51 billion in June 2023. Cumulatively, exports fell almost 10% to $5.35 billion in April-June FY24.
Engineering exports to the European Union (EU) fell as much as 16.2% year-on-year to $1.51 billion in June 2023. Cumulatively, exports fell almost 10% to $5.35 billion in April-June FY24.
In June 2023, engineering exports to China declined 20% year-on-year to US$ 184 million. Engineering shipments to WANA, CIS, and the Northeast Asia region grew 10.9%, 161.2%, and 0.5%, respectively, from June 2022 to June 2023.
In June 2023, engineering exports to China declined 20% year-on-year to US$ 184 million. Engineering shipments to WANA, CIS, and the Northeast Asia region grew 10.9%, 161.2%, and 0.5%, respectively, from June 2022 to June 2023.
Overall, India’s engineering exports continued to fall for the third straight month in June. They came in at $8.53 billion, about 11% less than the same month last fiscal. In cumulative terms, the decline was around 7.45%.
Overall, India’s engineering exports continued to fall for the third straight month in June. They came in at $8.53 billion, about 11% less than the same month last fiscal. In cumulative terms, the decline was around 7.45%.
“It is the metal sector that has been the most significant contributor to the decline. This has been a result of weakening global demand. The latest news has indicated that global demand for steel weakened further with slower offtake from China’s construction sector,” said EEPC India Chairman Arun Kumar Garodia.
“It is the metal sector that has been the most significant contributor to the decline. This has been a result of weakening global demand. The latest news has indicated that global demand for steel weakened further with slower offtake from China’s construction sector,” said EEPC India Chairman Arun Kumar Garodia.
Garodia added, “Similar concerns including the banking crisis in the US have also affected the demand and price of copper, aluminum, lead, and zinc. It is also reflected in India’s export performance, indicating a sharp decline in exports to some of India’s major partners, including the USA, EU countries, and China. The situation is expected to further worsen with the implementation of CBAM regulations by the EU. The debt crisis has also led to declining exports to South Asia, India’s immediate neighborhood.”
Garodia added, “Similar concerns including the banking crisis in the US have also affected the demand and price of copper, aluminum, lead, and zinc. It is also reflected in India’s export performance, indicating a sharp decline in exports to some of India’s major partners, including the USA, EU countries, and China. The situation is expected to further worsen with the implementation of CBAM regulations by the EU. The debt crisis has also led to declining exports to South Asia, India’s immediate neighborhood.”
Excluding the export of iron and steel, engineering exports recorded a lower 6.95% year-on-year decline in June 2023 and 2.62% decline during April-June 2023. This shows that steel plays a spoilsport in the downfall of engineering exports.
Excluding the export of iron and steel, engineering exports recorded a lower 6.95% year-on-year decline in June 2023 and 2.62% decline during April-June 2023. This shows that steel plays a spoilsport in the downfall of engineering exports.
As many as 17 of 34 engineering panels or segments witnessed positive year-on-year growth in June 2023, while the remaining 17 panels witnessed negative growth in exports. Major engineering products like iron and steel, products of iron and steel, most non-ferrous products including , zinc, tin products barring copper, nickel & lead products, industrial machinery and parts, two & three wheelers, auto components and parts, auto tyres, railway transport, and hand tools witnessed the decline in exports during June 2023 vis-à-vis June 2022.
As many as 17 of 34 engineering panels or segments witnessed positive year-on-year growth in June 2023, while the remaining 17 panels witnessed negative growth in exports. Major engineering products like iron and steel, products of iron and steel, most non-ferrous products including , zinc, tin products barring copper, nickel & lead products, industrial machinery and parts, two & three wheelers, auto components and parts, auto tyres, railway transport, and hand tools witnessed the decline in exports during June 2023 vis-à-vis June 2022.
Elaborating on trends in engineering exports, EEPC India Chairman Garodia said that India’s exports to new FTA partners UAE and Australia have increased since the signing of the trade pacts and therefore more comprehensive FTAs with potential partners will be the right step for India to achieve its goal of US$ 2 trillion exports by 2030.
Elaborating on trends in engineering exports, EEPC India Chairman Garodia said that India’s exports to new FTA partners UAE and Australia have increased since the signing of the trade pacts and therefore more comprehensive FTAs with potential partners will be the right step for India to achieve its goal of US$ 2 trillion exports by 2030.
He noted, “Globally, there is a growing trend of “friend-shoring” which indicates diversification of trade towards a political ally. Also, several companies and economies are considering a China plus policy in the aftermath of the Covid pandemic. It is an opportunity for India to diversify, especially to non-traditional markets of Africa and Latin America. This can be done by pursuing comprehensive FTAs in these regions.”
He noted, “Globally, there is a growing trend of “friend-shoring” which indicates diversification of trade towards a political ally. Also, several companies and economies are considering a China plus policy in the aftermath of the Covid pandemic. It is an opportunity for India to diversify, especially to non-traditional markets of Africa and Latin America. This can be done by pursuing comprehensive FTAs in these regions.”
Engineering exports from India conceded a year-on-year decline for the seventh month in a row in June. June also marked the third straight month of decline and the first double-digit decline in engineering exports during the ongoing fiscal year. In June, the decline was 10.99% as against 4.13% in May.
Engineering exports from India conceded a year-on-year decline for the seventh month in a row in June. June also marked the third straight month of decline and the first double-digit decline in engineering exports during the ongoing fiscal year. In June, the decline was 10.99% as against 4.13% in May.
