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India's Engineering Exports Struggling For Growth; Experience Marginal Decline In April 2024

Updated: May 24, 2024 01:07:21pm

India's Engineering Exports Struggling For Growth; Experience Marginal Decline In April 2024

New Delhi, May 24 (KNN) India's engineering exports witnessed a 3.2 per cent year-on-year dip in April 2024, amounting to USD 8.67 billion, primarily attributed to lower shipments of metals, notably iron, steel, and copper. This contraction follows four consecutive months of steady growth in the sector.

Arun Kumar Garodia, Chairman, Engineering Export Promotion Council (EEPC) of India, cited waning international demand in major markets, an increasing trend of nearshoring among developed economies, and a significant decline in Chinese steel demand as key factors behind the slump.

He further noted that Chinese steel exports have become more cost-competitive compared to Indian exports.

Despite the April setback, the engineering export industry remains optimistic about a potential resurgence in global trade and a consequent boost to India's engineering exports in the coming months.

The decline in engineering exports was widespread, impacting almost all regions except North America, North East Asia, the West Asia and North Africa (WANA) region, and the Commonwealth of Independent States (CIS).

North America and the European Union retained their positions as India's top destinations for engineering exports, accounting for 21.1per cent and 18.4 per cent of the total, respectively.

North East Asia registered the highest growth of 24.5 per cent during April 2024 compared to the same period last year, followed by the CIS (7.9 per cent growth), North America (4.7 per cent growth), and the WANA region (3.1 per cent growth).

"However, the industry is hopeful that global trade will pick up and India’s engineering exports would also get some boost in the coming months," Garodia mentioned.

The share of engineering exports in India's total merchandise exports during April 2024 stood at a higher 25.85 per cent, compared to 24.76 per cent in April 2023 and 25.01 per cent during the entire fiscal year 2023-24.

For the financial year ended March 2024, India's total engineering goods exports rose marginally to USD 109.32 billion from USD 107.04 billion in the previous fiscal year, despite numerous challenges.

Engineering exporters continue to explore new markets and deepen their presence in traditional markets, with a focus on increasing exports of value-added products.

The proposed free trade agreements (FTAs) with important trade partners and blocs are expected to significantly bolster the sector's share in the global market.

(KNN Bureau)


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