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India reports 13.5% rise in engineering exports at $9.79 billion in May 2022

Moneycontrol logo Moneycontrol 23-06-2022 CR Sukumar
India reports 13.5% rise in engineering exports at $9.79 billion in May 2022 © Moneycontrol India reports 13.5% rise in engineering exports at $9.79 billion in May 2022

India reported engineering exports at $9.79 billion in May 2022, recording a growth of 13.5 percent over the $8.62 billion reported in the same month a year ago, while the country saw its cumulative engineering exports growing by 16.84 percent at $19.39billion ($16.6 billion) during April-May 2022 period.

Though exports to China declined by 52 percent to $217.4 million in May, down from $451.7 million in the same month a year ago, India saw its engineering exports to the United States surging 63.2 percent at $1.81 billion in May, up from $1.11 billion a year ago.

Germany, Singapore, the UK, Italy, and Thailand were among the countries that recorded positive growth in the import of engineering goods from India during May. The top 25 countries contributed nearly 75 percent of total engineering exports from India.

North America and the European Union were the regions that reported maximum growth in exports from India in both monthly and cumulative terms, according to the data released by the Engineering Exports Promotion Council (EEPC) of India on June 23.

Engineering exports accounted for 25.14 percent of total merchandise exports of India in April-May 2022, up from 24.64 percent reported in the same period a year ago.

Though India saw its engineering exports growing so far in the current fiscal, concerns still remain, said Mahesh Desai, chairman of EEPC India. “One of the biggest concerns is the Russia-Ukraine war that has severely hampered shipments to CIS nations and may have a ripple effect on the global economy.”

Further, Desai viewed that the resurgence of COVID-19 and subsequent damage to business prospects in some industrial cities may also adversely impact the global trade scenario.

“Rising oil and commodity prices have added to the uncertainty. A sharp depreciation of rupee, although can help exports, for the time being, continuous weakening may be damaging for the economy,” said Desai, adding that the signing of new free trade agreements with UAE and Australia and ongoing negotiations with a number of developed nations may help exports from India to rise.

As per the data of EEPC India, 28 out of 34 engineering panels witnessed positive year-on-year growth in exports during April-May 2022 over the same period a year ago.

In May 2022, the exports of iron and steel and its products saw a 16 percent growth to $2.63 billion, up from $ 2.26 billion a year ago. Exports of non-ferrous metals and products rose 21 percent year-on-year to $1.31 billion, while exports of industrial machinery jumped 33 percent to $ 1.58 billion ($ 1.19 billion) in May 2022.

India has set a target of $127 billion of engineering exports for the current fiscal 2022-23 and the industry has achieved 15.3 percent of the target in the first two months of the fiscal, said EEPC India.

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