New Delhi: According to EEPC India, India’s engineering exports to major markets like the European Union (EU), China, and the United States continued to decline in June 2023, reflecting a difficult global trade environment.
However, the country’s shipments to North East Asia, West Asia and North Africa (WANA) and CIS countries showed positive growth during the same period, said the Engineering Exports Promotion Council of India (EEPC). India’s engineering exports fell in June 2023 for the third consecutive month, falling 11 per cent year-on-year to USD 8.53 billion.
The report said the decline was led by a sharp fall in US, China and EU exports. Exports to the US fell 12.5 per cent to $1.45 billion, while exports to China fell 20 per cent to $184 million. Exports to the EU fell 16.2 per cent to $1.51 billion.
However, engineering exports to Russia nearly tripled and amounted to a substantial $116.9 million in June 2023. During the April-June period of the current fiscal year, exports to Russia noticed a remarkable four-fold surge, totalling $337.4 million compared to $89.7 million in the previous fiscal year.
“It is the metal sector that has been the most significant contributor to the decline. This has been a result of weakening global demand. The latest news has indicated that global steel demand weakened further with slower offtake from China’s construction sector,” said Arun Kumar Garodia, EEPC India Chairman. Excluding the export of iron and steel, engineering exports recorded a lower 6.95 per cent year-on-year decline in June 2023.
In June 2023, 17 out of 34 engineering segments witnessed positive year-on-year growth, while the remaining 17 segments experienced negative growth in exports.
Exports of major engineering products like iron and steel, most non-ferrous products (excluding nickel, lead products and copper), industrial machinery and parts, two- and three-wheelers, auto components and parts, auto tyres, railway transport, and hand tools saw declines during June 2023 compared to June 2022.
