New Delhi [India], March 26 : Indian engineering exports to Russia have nearly doubled, reaching a staggering USD 1.22 billion in the current financial year 2023-24 up to February, compared to USD 616.68 million in the previous fiscal year.
Conversly, shipments to the US experienced a 7 per cent decline during the same period, with exports totalling USD 15.95 billion in FY24 up to February, down from USD 17.10 billion in the corresponding period of the previous year.
According to data released by Engineering Export Promotion Council of India (EEPC), India's engineering goods exports to China also saw a marginal decline in FY24 until February, amounting to USD 2.38 billion compared to USD 2.40 billion in the same period of the previous financial year.
However, amidst the challenging global trade landscape, engineering shipments to the UAE and Australia, with which India recently inked a free trade agreement (FTA), remained positive.
Engineering exports to the UAE surged by 16 per cent year-on-year to USD 5.22 billion, while shipments to Australia increased by 5 per cent to USD 1.30 billion during this period.
Overall, cumulative engineering exports showed growth, reaching USD 98.03 billion during April-February 2023-24, compared to USD 96.84 billion during the same period of the previous financial year, marking a 1.23 per cent increase.
EEPC India Chairman Arun Kumar Garodia expressed optimism about the sector's performance, highlighting that India's engineering exports reached USD 9.94 billion in February 2024, recording the highest year-on-year growth (15.9 per cent) in fiscal 2023-24.
He attributed this growth to the sector's steady performance in recent months despite global trade difficulties.
"In the last few months, engineering exports from India have been on a steady growth path. In February 2024, India's engineering exports reached USUSD 9.94 billion recording the highest y-o-y growth (15.9 per cent) in the fiscal 2023-24. The remarkable performance of the sector in the last three months made it possible for the cumulative exports to also record a growth," said Garodia.
He further said, "The FTA with UAE and the negotiations with GCC have been quite effective as West Asia and North Africa's share in India's engineering export basket increased from 12 per cent last year to 15 per cent this year. This performance has been possible despite the difficult global trade situation."
Garodia also credited the Free Trade Agreement (FTA) with the UAE and ongoing negotiations with the Gulf Cooperation Council (GCC) for the increased share of West Asia and North Africa in India's engineering export basket, rising from 12 per cent last year to 15 per cent this year.
Amidst sluggish global trade growth, with 2023 witnessing the slowest trade growth in 50 years outside of global recession years, Garodia expressed hope for a positive turn in global trade dynamics, which could further boost India's exporting community.
In February 2024, India's engineering exports achieved year-on-year growth for the third consecutive month, registering a rate of 15.9 per cent, the highest in fiscal 2023-24.
The share of engineering exports in India's total merchandise exports also saw an uptick, reaching 24.01 per cent in February 2024 from 23.75 per cent in January 2024.
"As India's current performance stabilizes, we are hopeful that with a positive turn of the tide in global trade, our exporting community will be able to lift up their export performance," Garodia said.
However, not all sectors witnessed growth. In February 2024, 28 out of 34 engineering panels experienced positive year-on-year growth, while 6 panels reported declines.
Sectors such as zinc and products, nickel and products, motor vehicles and cars, railway transport and parts, ships and boats, and office equipment faced setbacks.
On a cumulative basis, 20 out of 34 engineering panels recorded positive growth, while sectors including iron and steel, non-ferrous sectors like aluminium, zinc, and nickel, as well as segments from industrial machinery and automobiles, experienced negative growth during April-February 2023-24.
Regionally, positive year-on-year growth in February 2024 was observed across various regions including North East Asia, West Asia and North Africa (WANA), Latin America, the European Union (EU), the Commonwealth of Independent States (CIS), Oceania, North America, and Sub-Saharan Africa. Only ASEAN and South Asia reported declines.
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