New Delhi [India]Jun 23 (ANI): India’s engineering goods exports rose 13.5% to $9.79 billion in May 2022 from $8.62 billion in the same month last year, according to monthly analysis of export trends from EEPC India.
Cumulative engineering exports for April-May 2022-23 were recorded at US$19.39 billion, up 16.84% compared to the US$16.6 billion of exports recorded in the corresponding period last year.
The United States remained the main market for Indian engineering products in May, while shipments to China declined. As many as 18 of the top 25 Indian engineering product markets posted positive growth in May 2022.
Exports to the US rose 63.2% year-on-year to $1.81 billion in May this year, compared to $1.11 billion in the corresponding month a year earlier. Other countries that posted positive growth in imports from India in the month of May include Germany, Singapore, the UK, Italy and Thailand.
However, exports of engineering products to China decreased by 52% year-on-year in May 2022 to $217.4 million compared to $451.7 million in the same month last year.
The top 25 countries contribute nearly 75 percent of India’s total engineering exports.
By region, the highest growth in exports was recorded in North America, followed by the EU, both in monthly and accumulated terms.
The share of engineering in total merchandise exports was recorded at 25.14 percent in May, while the share was 24.64 percent for April-May 2022-23.
Commenting on engineering export trends so far this fiscal year, EEPC India Chairman Mahesh Desai said: “Although the trend looks impressive, there are still some concerns. One of the biggest concerns is war between Russia and Ukraine, which has severely hampered shipments to CIS nations. and it may have a ripple effect on the global economy.” He pointed out that the resurgence of COVID and subsequent damage to business prospects in some industrial cities may also negatively affect the world trade scenario.
“Rising oil and commodity prices have added to the uncertainty. A sharp depreciation of the rupee, while it may help exports for the time being, continued weakening may be detrimental to the economy. Right now , the signing of a new FTA with the United Arab Emirates and Australia and the ongoing negotiations with several developed nations can help India’s exports to increase,” Desai said.
As many as 28 out of 34 engineered panels saw positive year-over-year growth in exports during May 2022 compared to May 2021.
Some of the engineering products, including ‘Copper and its products’, ‘Tin and products’, ‘Ships, boats and floating structures’, ‘Bicycles and parts’, ‘Prime Mica and products’, registered a decrease in exports year-on-year during May 2022.
Similarly, also on a cumulative basis, 28 of the 34 engineering panels posted positive growth during April-May 2022-23 over the same period last fiscal year.
The data shows that exports of iron and steel and their products rose 16 percent in May to $2.63 billion from $2.26 billion. The trend for non-ferrous metals and products exports was also positive during May, with a 21% year-on-year increase in total exports to $1.31 billion.
The engineering industry has reached 15.3% of the $127 billion target (for FY23) in the first two months of 2022-23, EEPC analysis showed. (AND ME)