India’s engineering exports to 18 major destinations, including the US, the UK, Germany, and the UAE, posted an increase in October 2023 (year-on-year), while shipments to China, Italy, Singapore, and Indonesia declined.
Overall, engineering exports from India in October 2023 increased by 7.2 per cent (year-on-year) to $8.09 billion, but it was largely attributable to the low base of the previous fiscal, according to the industry body EEPC India.
Despite engineering exports growing for the third consecutive month in October 2023, cumulative engineering exports for the April-October 2023 period declined by 1.61 per cent to $61.63 billion compared to the same period last fiscal.
The metal sector, specifically iron and steel, aluminum and its products, and zinc, has been pointed out as the biggest contributor to this decline by EEPC India Chairman Arun Kumar Garodia in a statement issued on Monday.
“The slump in the demand in developed countries, especially the European Union, has caused issues for Indian metal exporters. The situation has been further worsened by the various market access barriers imposed by countries in the EU and North America on Indian exporters,” he added.
EEPC has requested the government for additional support to help the industry remain competitive in the global market.
“Raw material prices have been a major pain point for downstream engineering industries. The price analysis indicates that Indian metal prices have gone up compared to international prices. Concerted support in these areas is extremely important for the steady growth of engineering exports from India,” Garodia said.
In October 2023, 26 out of 34 engineering panels posted year-on-year growth in exports, while eight panels, including major raw materials like iron and steel, non-ferrous sectors, and machinery, recorded a fall, per the statement.
On a cumulative basis, 21 out of 34 engineering panels recorded growth in exports in April-October 2023-24.
The value of engineering exports to the US in October 2023 was $1.39 billion, up 2.2 per cent compared to October 2022. Engineering exports to the UAE rose by 2.9 per cent in October 2023 to $348.6 million, while exports to the UK and Germany increased by 60.3 per cent to $302.5 million and by 20 per cent to $342.7 million, respectively.