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Engineering goods exports from India increased 11.8 per cent in April-June 2022-23 (year-on-year) to $28.96 billion, despite a sharp decline in exports to China, as countries like the US, Germany and Mexico sourced more, according to industry data.
Growth in exports of engineering products, however, slowed down in June to 4.2 per cent at $9.69 billion, with exports to China falling 55 per cent to $232.78 million, and performance of certain steel products — including stainless steel — getting affected due to a 15 per cent export duty announced on May 22, EEPC India pointed out in a statement.
“As per the industry, the move to impose export duty on certain steel items particularly hurt them at a time when there are ample opportunities for Indian exporters as global supply is affected by the growing Ukraine-Russia conflict and complete shutdown in certain Chinese cities,” said Mahesh Desai, Chairman, EEPC.
Share of engineering in total goods exports from the country was recorded at 23.86 per cent in June, while the share was slightly higher at 24.35 per cent during April-June 2022-23, the statement added.
US No 1 importer
The US continued to be the top importer of India’s engineering goods, both in the month of June and during the quarter. Engineering exports to the US jumped 28.59 per cent in June 2022 to $1.67 billion.
Exports of engineering products to the US during the quarter increased 48.09 per cent to $5.31 billion. The top five export destinations for engineering goods during June were the US, Germany, Mexico, UK and Bangladesh. As many as 27 out of 34 engineering panels posted an export growth during June.
Major decline was witnessed in iron and steel, copper and its products, lead and products and industrial machinery for boilers, the statement highlighted.
“Overall the global economic situation is still not stable and while newer opportunities are emerging amidst the crisis the industry needs to be prepared in all aspects including pricing, quality and exportability of its production to grab those opportunities,” Desai said.
Engineering exports posted a 46 per cent growth in 2021-22 to $112 billion. The industry is chasing an export target of $127 billion for 2022-23.
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