US remained top market for Indian engineering goods in May, shipments to China decline: EEPC India

New Delhi, June 23 (FN Agency As many as 18 out of 25 major markets for Indian engineering goods recorded positive growth in May 2022 with the USA remaining the top destination, according to EEPC India monthly analysis of export trends. Exports of engineering goods to China, however, declined 52% year-on-year in May 2022 to $ 217.4 million as compared to $ 451.7 million in the same month last year. Exports to the US surged 63.2% year-on-year to $ 1.81 billion in May this year as compared to $1.11 billion in the corresponding month of the previous year. Among other countries which recorded positive growth in imports from India in the month of May included Germany, Singapore, UK, Italy and Thailand. The top 25 countries contribute almost 75% of total engineering exports from India.In terms of region, maximum growth in exports was witnessed in North America followed by the EU in both monthly and cumulative terms.

During May 2022, India’s engineering exports stood at $ 9.79 billion as against $ 8.62 billion in May 2021, registering a 13.5% increase over the same month last year. Cumulative engineering exports for Apr-May 2022-23 was recorded at $ 19.39 billion, which was 16.84% increase over $ 16.60 billion of exports during the same period last year. Share of engineering in total merchandise exports was recorded at 25.14% in May while the share was 24.64% for April-May 2022-23.EEPC India Chairman Mahesh Desai said, “Although the trend looks impressive, some concerns are still there. One of the biggest concerns is the Russia-Ukraine war that has severely hampered shipments to CIS nations and may have some ripple effect on global economy. “He noted that resurgence of COVID and subsequent damage of business prospects in some industrial cities may also impact the global trade scenario adversely.” Rising oil and commodity prices have added to the uncertainty. Sharp depreciation of rupee, although can help exports for the time being, continuous weakening may be damaging for the economy.

At this juncture, signing of new FTA with UAE and Australia and ongoing negotiations with a number of developed nations may help exports from India to rise,” Desai said.As many as 28 out of 34 engineering panels witnessed positive year-on-year growth in exports during May 2022 vis-a-vis May 2021. Some of the engineering products including Copper and its products’, ' Tin and products',Ships, boats and floating structures’, ‘Bicycle and Parts’, ‘Prime Mica and Products’ conceded decline in year-on-year exports during May 2022.Similarly, on a cumulative basis also, 28 out of 34 engineering panels recorded positive growth during April-May 2022-23 over the same period last fiscal. The data showed that exports of iron and steel and its products rose 16% in May to $ 2.63 billion as compared to $ 2.26 billion. Trend in exports of non-ferrous metals and products were also positive during May with the total exports rising 21% year-on-year to $ 1.31 billion.Exports of industrial machinery jumped 33% in May to $ 1.58 billion as compared to $ 1.19 billion in May 2021. The engineering industry achieved 15.3% of the target of $ 127 billion (for FY23) in the first two months of 2022-23, the analysis said.