Kolkata / New Delhi, July 29 (Mayank Nigam) Back to double-digit growth in June this year,engineering goods exports rose 4.34 percent year-on-year to US$ 27.93billion in the quarter ending June 30, 2024 from US$ 26.77 billion in the same period a yearago, according to EEPC India. Among the top destinations of Indian engineering goods, shipments tocountries such as the US, UAE, Saudi Arabia, and the UK increasedduring the June quarter of the current fiscal year. Engineering exports to the highly developed nation US grew 8.2 pcyear-on-year to US$ 4.65 billion in April-June quarter of FY 2024-25as compared to US$ 4.30 billion in the correspondingperiod of FY2023-24 Engineering exports to the UAE and Saudi Arabia rose 38.2 pc and 42.4pc year-on-year to US$ 1.99 billion and US$ 1.40 billion respectivelyduring the April-June quarter of the current fiscal.
Engineering exports to the UK jumped 21 pc year-on-year to US$ 1.01billion during this period. Notably, engineering exports to China grew 10.4 pc year-on-year to US$619.2 million in the June quarter of the current financial year. Commenting on engineering exports data, chairman, EEPC India ArunKumar Garodia said, “The FTA with UAE has proved beneficial for theengineering export community and we feel that the ongoing FTAnegotiations with GCC once concluded would further favour thecommunity. Global trade has also been growing after a dismalperformance last year. The global goods trade in the first quarter of2024 increased by 1% on a year-on-year basis and is expected to risefurther in the coming months. This would be favourable for India’sexporting community, too.” As many as 23 out of 34 engineering panels recorded positive growthand remaining 11 engineering panels including Iron and Steel, Productsof Iron and Steel, some non-ferrous sectors including Copper,Aluminium, Zinc, Nickel, and products, Industrial Boilers, Ships,Boats and Floating Bodies, Office Equipment and Prima Mica productsrecorded negative growth during April-June period of 2024-25.
After starting the new fiscal (2024-25) with a 4.49 pc year-on-yeardecline in April, Indian engineering exports in May this year bouncedback and then recorded double-digit growth in June 2024 at10.27 pc year-on-year. Engineering exports in June 2024 rose to US$ 9.39 billion from US$8.52 billion in June 2023. Growth in engineering exports in June 2024 was attributed to a decentrise in shipments of Electrical machinery, Motor vehicles/Cars,Products of iron and steel, Auto components and parts, and Industrialmachinery among others. Exports of iron and steel, however, dropped by33 pc year-on-year during April-June 2024-25 due to tough competitionfrom cheaper Chinese steel, drop in domestic production, and increasein domestic demand. Excluding the export of iron and steel, engineering exports recorded amuch higher growth both on a monthly as well as cumulative basis.Exports of Iron and Steel conceded a 20 pc year-on-year decline inJune 2024 and 33 pc year-on-year decline during the April-June periodof 2024-25. “The Union Budget of 2024-25 has announced some very favourablemeasures for the upliftment of the MSMEs in our country. Other movesannounced in the budget such as setting up E-Commerce export hubs inPPP model or favourable policies regarding the customs duty would beof immense help to the exporting community. Investment-grade energyaudits across 60 traditional industry clusters will enhanceoperational efficiency and reduce carbon emissions, aligning with theEU’s CBAM requirements. The above initiatives will play a significantrole in bolstering the position of the Indian engineering industry,”Garodia said.