Kolkata / New Delhi, Feb 24 (FN Bureau) Engineering goods exports to as many as 13 top markets, including the US, China, UAE, and Russia, rose in January, EEPC India said on Saturday. Out of the total 25 countries, 13 countries recorded positive year-on-year growth in January 2024. Exports to almost all major regions remained positive, baring ASEAN, Sub-Saharan Africa, and Oceania, during January this year. it said. Engineering shipments to India’s top export market, the US, rose by 6 percent year-on-year in January 2024 to US$ 1.37 billion, and to China, they increased by 15.1 percent to US$ 244.34 million last month.
The value of engineering shipments to the UAE in January this year was US$390.80 million, higher by 3.8 percent compared to US$376.37 million in January 2023. Engineering exports to Russia continued to surge and grew 30.8 percent year-on-year to US$89.34 million in January this year. Engineering export growth was negative in the case of countries like Singapore, South Africa, Nepal, Australia, and Malaysia. “Despite challenges posed by the Red Sea crisis, India’s engineering exports show promise for the future. The disruption in trade routes has hindered potential growth, but there remains optimism that by the end of the fiscal year, India will see positive growth in this sector,” said EEPC India Chairman Arun Kumar Garodia on Saturday. He said the ongoing negotiations for key Free Trade Agreements (FTAs) with the UK, Oman, and the European Free Trade Association (EFTA) blochold significant potential for bolstering exports. “Successful conclusions from these agreements could open up new avenues and opportunities, further contributing to the growth and expansion of India’s engineering exports on the global stage,” Garodia added.
During January 2024, engineering exports were recorded at US$ 8.76 billion as against US$ 8.41 billion in January 2023, registering 4.2 percent growth. In December 2023, exports had crossed US$ 10 billion with 9.8 percent year-on-year growth. Growth in January 2024 was primarily on account of the rise in shipment of iron and steel, aircraft, spacecraft and parts, copper and copper products, and electric machinery. Higher demand from South Asia, the EU, and North America also contributed to the growth. Excluding iron and steel, engineering exports recorded a lower 3.48 percent year-on-year growth during January 2024, as exports of iron and steel grew year-on-year in that month. India’s engineering exports achieved year-on-year growth for the second straight month to January 2024, but both the value and rate of growth were much lower than those of December 2023. The decline in cumulative engineering exports narrowed down further to 0.19 percent year-on-year during April–January 2023–24, when it was recorded at US$88.10 billion as against US$88.27 billion during April–January 2022–23.
The share of engineering exports in India’s total merchandise exports dropped slightly to 23.75 percent in January 2024 from 23.93 percent in December 2023. On a cumulative basis, the share was 24.94 percent during April–January 2023–24. In January 2024, 22 out of 34 engineering panels witnessed positive year-on-year growth, while the remaining 12 experienced a decline. Exports of aluminium and products, zinc and products, selected industrial machinery, motor vehicles and cars, bicycles and parts, ships and boats, and office equipment dropped. On a cumulative basis, 15 out of 34 engineering panels recorded negative growth during April–January 2023–24. Region-wise, positive year-on-year growth in January 2024 was observed in shipments to the EU, North America, WANA, NE Asia, South Asia, Latin America, Other Europe, and CIS countries.