Engg exports dip in 1st 8 mths of FY24: EEPC
High interest rates, commodity volatility, and trade curbs take toll
image for illustrative purpose
Kolkata: Exports of engineering goods during the period April to November of the current financial year have dipped 1.81 per cent at $69.46 billion as against $70.74 billion in the similar previous period, Engineering Exports Promotion Council (EEPC) of India said.
Engineering goods exports to West Asia and North Africa (WANA), North East Asia, and CIS countries recorded positive year-on-year growth in the first eight months (April-November) of the current financial year 2023-24, while shipments to key regions like North America, EU, ASEAN and South Asia witnessed decline during this period.
Excluding iron and steel, engineering exports recorded a marginal 0.79 per cent y-o-y growth during April-November 2023-24, EEPC said in a statement on Thursday. Engineering exports from India declined by 3.10 per cent to $7.85 billion in November 2023 from $8.10 billion in November 2022. Commenting on the latest engineering exports numbers, EEPC India chairman Arun Kumar Garodia said "Overall, factors like high-interest rates and weakening industrial output, volatility in commodity prices and increase in trade-restrictive measures are affecting global trade and in turn India's engineering exports".
He said, "Given the above situation, we seek guidance and support from the government to face these difficult times. Factors such as raw material prices and the 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". The share of engineering exports in India's total merchandise exports was recorded at 23.17 per cent in November 2023, as against 24.11 per cent in the preceding month, EEPC said.
Among top exporting destinations, exports to Saudi Arabia, Russia, South Korea, Mexico, Singapore, UAE, and Brazil experienced year-on-year growth in November 2023, while shipments to the USA, UK, Germany, Italy, and China saw negative export growth, the trade body said. Notably, since the signing of the FTA with Australia, engineering exports to the country declined for the first time in November this year.
