Engineering exports to 18 key markets record positive growth in Oct 23

New Delhi, Nov 27 (FN Bureau) Indian engineering exports to as many as 18 countries, including the US, UK, and Germany, out of 25 top destinations globally recorded positive growth in the month of October 2023, according to engineering exports promotion body EEPC India. China, Italy, Singapore, and Indonesia were among the countries that saw a decline in engineering shipments from India during this period. The value of engineering exports to the US in October 2023 was US$ 1391.5 million, up 2.2% year-on-year against US$ 1,361 million in October 2022. Engineering exports to the UAE rose 2.9% year-on-year to US$ 348.6 million in this period. As per data released by EEPC India, engineering exports to the UK saw a 60.3% year-on-year jump at US$ 302.5 million in October 2023. At US$ 342.7 million, engineering goods exports to Germany in October 2023 were higher by 20% year-on-year. During this period, engineering exports to China dipped 6.4% year-on-year to US$ 213.2 million. Engineering exports to Indonesia plummeted 18.2% in October to US$ 122.9 million.

Overall, engineering exports from India soared up to US$ 8,094.20 million in October 2023 from US$ 7,550.69 million in October 2022, registering 7.2% growth year-on-year. The lower base of the previous fiscal was attributed to this growth. Cumulative engineering exports for April-October 2023-24 were down by 1.61% as they declined to US$ 61.63 billion from US$ 62.63 billion during April-October 2022-23. In October 2023, as many as 26 out of 34 engineering panels saw positive year-on-year growth, while 8 panels, including major raw materials like Iron and Steel, Non-Ferrous sectors, and Machinery, experienced negative export growth. On a cumulative basis, 21 out of 34 engineering panels recorded positive growth during April-October 2023-24. After a slump in the first half of this year, India’s engineering exports continued to record positive year-on-year growth for the third straight month in October 2023.

This is despite the cumulative export growth being negative. “The biggest contributor to this decline has been the metal sector specifically iron and steel which conceded a 20% decline, aluminium and its products which conceded around 25% decline, and zinc which conceded more than 40% decline in October 2023 compared to the same period last year,” said EEPC India Chairman Arun Kumar Garodia. He further said, “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 that countries in EU and North America are imposing on Indian exporters.” The share of engineering exports in India’s total merchandise exports was recorded at 24.11% in October 2023, while the cumulative share was higher at 25.17% during April-October 2023-24. EEPC India chief urged the government for more support to help the industry stay competitive in the global market. “Raw material prices have been a major pain point for the 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.