New Delhi, Aug 23 (FN Bureau) Engineering goods exports to crisis-hit Bangladesh, one of the top 25 markets for Indian engineering items, fell 11.8% year-on-year to US$ 153.78 million in July 2024, according to data released by the Engineering Export Promotion Council of India (EEPC India) on Friday. Bangladesh recently witnessed deadly demonstrations and violence, which forced Prime Minister Sheikh Hasina to resign and flee the country. The neighbouring country continues to stare at political uncertainty.
Even as engineering exports to many top markets witnessed a decline during July this year, overall engineering exports from the country remained positive and rose 3.66% year-on-year to US$9.04 billion during the month. “Indian engineering exports continued their growth run for the third month to July 2024, albeit a lower 3.66% year-on-year growth as against over 10% in June 2024. The total value of engineering goods exports in July 2024 stood at US$9.04 billion as against US$8.72 billion in the same month last year,” an official release said. Growth in engineering exports in July 2024 was attributed to a decent rise in shipments of electrical machinery, automobile and auto components, and construction machinery, including cranes, lifts, and winches, among others. Commenting on export data, EEPC India Chairman Mr. Arun Kumar Garodia said, “The situation in overall engineering exports is expected to improve in the future as global forecasts for GDP growth remain at around 3% for 2024, with the short-term trade outlook being cautiously optimistic.”
He further said, “The recently announced Union Budget 2024–25 is expected to facilitate MSMEs and export finance significantly. The budget has also promised rationalised BCDs for key inputs, which would give a further boost to engineering exports.” According to the Quick Estimates of the Department of Commerce, Government of India, the share of engineering in India’s total merchandise exports increased to 26.60% in July 2024. The cumulative share stood at 25.65% during April–July 2024–25. The US remained the top market for Indian engineering goods in July this year, with total shipments during the month valued at US$1.5 billion, up 4.2% year-on-year. Engineering exports to the UAE stood at US$625.78 million in July this year, up 65.6% year-on-year. Exports to Saudi Arabia rose 9.2% year-on-year to US$412.30 million in July this year. As per the latest data, the value of engineering exports to Russia declined 26.8% in July this year to US$90.39 million from US$123.55 million in the same month last year.