Kolkata / New Delhi, May 15 (FN Agency) After recording positive growth for four consecutive months despite global challenges, engineering exports from India dipped 3 percent year-on-year in April 2024 to US$8.66 billion. The decline could be attributed to weak demand from some key markets and logistics issues arising from the Red Sea crisis, according to EEPC India. However, in recent weeks there have been some signs of improvement in global economic outlook and as a result trade should rebound. The engineering sector should certainly do better in the current year, EEPC India chairman Arun Kumar Garodia said on Wednesday.
While the exporting community continues to grab emerging opportunities and penetrate new markets, some of the latest developments suggest demand scenarios from traditional markets would improve. In the first quarter of 2024, the UK economy has done better than expected. Inflation is expected to ease in the developed markets in the ongoing fiscal year. A free trade deal with the UK is expected to conclude sooner than later. In addition to that, FTAs with some other countries and trade blocs are also in the pipeline. The India-ASEAN trade agreement is also under review and once finalised would address various anomalies which put Indian exporters in a disadvantageous position for years. All indications suggest that there will be renewed focus on exports once the new government assumes office next month. On the whole, the engineering sector remains optimistic about exports growth, Garodia added.