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India’s engineering exports to one of its biggest destinations — the US — have dipped by about 10 per cent to $3.9 billion during April-November this fiscal due to slowdown in global demand.
“Shipments to the US dropped by 9.19 per cent to $3.90 billion during April-November this fiscal from $4.3 billion and the country is among India’s largest destination,” Engineering Export Promotion Council (EEPC) said in a statement today.
But exports to Germany fell about six per cent to $1.3 billion during the period.
“The signs of recovery in some of the key western countries like the US are hazy. This way, there was a drop in overall engineering exports by over 14 per cent in November,” EEPC India Chairman Anupam Shah said.
Free trade pacts
However, he said that engineering exports to few countries with which India has free trade agreements have shown a healthy growth during April-November.
Engineering shipments to Japan have recorded a growth of 17 per cent during the eight-month period of the current fiscal to $568 million from $485 million in the same period last year, EEPC said.
Similarly, exports to South Korea grew over 13 per cent to $739 million.
India has implemented a comprehensive free trade pact with both these nations.
“The Japanese economy is doing rather well, while the manufacturing base in South Korea kept the momentum alive despite problems in the West,” Shah said.
Liberalised trading regime
He said that a similar trend was seen in the trade among neighbouring countries like Bangladesh, Sri Lanka and Nepal with which India has some kind of a liberalised trading regime.
Engineering shipments to Sri Lanka went up 18.57 per cent to $1.34 billion during the period from $1.13 billion a year ago. Likewise, exports to Nepal were up 20.84 per cent at $577 million.
However, he said that engineering exports to Singapore, with which India has implemented FTA in 2005, have registered a decline.
“Exports of the engineering goods to this island nation in April-November saw a drop of 2.11 per cent to $1.99 billion,” he added.
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