Economy

Engineering exports record high growth across markets, categories in May 2021

Our Bureau New Delhi | Updated on June 22, 2021

US and UAE were the top two destinations for shipments of engineering goods from India

Exports of engineering goods to the US grew 56 per cent (year-on-year) to $1.02 billion while cumulative growth in the first two months of the fiscal was 144 per cent, according to an official release issued by the Engineering Export Promotion Council of India (EEPC India) on Tuesday. The US and UAE were the top two destinations for shipments of engineering products from India in May 2021 while exports to China declined.

Exports to the UAE grew by 70 per cent in May 2021 while cumulatively exports to the market grew 79 per cent during April-May 2021.

All the top European markets such as Germany, Italy, France, UK, Spain, Poland and Belgium too recorded high monthly as well as cumulative growth during the period, the release said. Europe accounted for 21 per cent of total engineering exports shipped from India.

With growth in most key markets, engineering goods were one of the top performing items in May 2021 with overall exports increasing 53 per cent to $8.6 billion. Even compared with May 2019, when economic activities were normal and not affected by the pandemic, shipments of engineering items in May 2021 clocked 14.65 per cent growth.

Also read: Indian meat exports to get a boost as Cambodia decides to lift temporary ban

In the April-May 2021 period, exports of engineering goods more than doubled to $16.6 billion compared to the same period last year, per government data.

“We have seen impressive growth in exports for the last three months in a row and the order books for the coming months remain strong. While demand has remained subdued in the domestic market, the engineering export sector has made a strong rebound. In order to keep the momentum, India needs to vaccinate most citizens at the earliest," said EEPC India Chairman Mahesh Desai.

Fall in shipments to China

Shipments to China, however, fell sharply by 35 per cent in May to $ 444.65 million in May 2021. Among the ASEAN countries in the top 25 engineering exports destinations, Indonesia, Thailand and Vietnam recorded high growth while exports to Singapore and Malaysia posted a fall during April- May 2021 over April- May 2020.

Led by industrial machinery, products of iron and steel and non-ferrous metal items, 30 out of total 33 engineering goods categories recorded strong growth in exports during May, 2021, the release stated.

Published on June 22, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like