Engineering exports decline in Nov as shipments to EU, US fall

2023-12-28 12:59:21

Engineering exports from India slipped back into red in November 2023, declining 3.10 per cent (year-on-year) to $7.85 billion, following three successive months of growth, as demand from key markets such as the EU, the US and ASEAN dipped, per figures analysed by EEPC India.

India’s exports of engineering goods to Russia, however, increased 75 per cent in November 2023 to $113.49 billion, continuing steadily on the growth path. In the April-November 2023 period, overall export of engineering goods declined 1.81 per cent to $ 69.46 billion, mostly a reflection of poor global demand.

“High interest rates, weak industrial output, volatility in commodity prices and increase in trade restrictive measures are affecting global trade and, in turn, India’s engineering exports,” said EEPC India Chairman Arun Kumar Garodia.

Exporters sought guidance and support from the government to help them tide over the difficult times. “Factors such as raw material prices and high cost of logistics are becoming an additional burden for Indian exporters in the face of this global trade depression. We urge the government to look into these matters and continue supporting us to keep us competitive in the global market,” said Garodia.

Destinations recording a fall in exports of Indian engineering products include the US, the UK, Germany, France, Italy, and China. The fall in exports to major destinations was offset to some extent by the steep increase of 138 per cent in exports to Russia during the April-November 2023 period to $908 million, per EEPC data.

Moscow is interested in sourcing more items from India to set off part of its huge trade surplus with the country. UAE, Saudi Arabia, South Korea, and Brazil are the other markets where engineering goods shipments posted a growth.

The share of engineering exports in India’s total merchandise exports fell to 23.17 per cent in November 2023, compared to 24.11 per cent in October 2023 and 24.92 per cent during April-November 2023-24.

engineering panels

In November 2023, as many as 24 of 34 engineering panels, including major raw materials such as iron and steel, non-ferrous sectors and machinery, recorded a fall in exports.

On a cumulative basis, 16 out of 34 engineering panels recorded a fall in exports during April-November 2023-24, the data revealed.