Cumulative engineering exports in the April-November period of FY24 dipped 1.81% year-on-year to US$69.46 billion as against US$ 70.74 billion in the same period of 2022-23.
Excluding iron and steel, engineering exports recorded marginal 0.79% y-o-y growth during April-November 2023-24.
After achieving year-on-year growth for three months in a row from August to October 2023, engineering exports from India declined once again in November 2023.
Engineering exports from India declined by 3.10% to US$7.85 billion in November 2023 from US$ 8.10 billion in November 2022.
EEPC India Chairman Mr Arun Kumar Garodia said, in a statement, “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 further 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% in November 2023 as against 24.11% in October 2023, while the cumulative share was higher at 24.92% during April-November 2023-24.
In November 2023, 10 out of 34 engineering panels saw positive year-on-year growth, while 24 panels, including major raw materials like iron and steel, non-ferrous sectors, and machinery, experienced negative export growth.
On a cumulative basis, 16 out of 34 engineering panels recorded negative growth during April-November 2023-24.
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.
Engineering shipments to the US, India’s top engineering goods market, dropped 11% year-on-year in November 2023 to US$1.32 billion as compared to US$1.48 billion in November 2022. Engineering goods exports to China fell 23% year-on-year to US$201.96 million in November this year as compared to US$263.57 million in the same month last year.
Among EU nations, engineering exports to Germany declined 19% year-on-year in November this year to US$264 million. Engineering shipments to France fell 12% to US$158.28 million in November 2023 from US$180.43 million in November 2022.
Notably, since the signing of the FTA with Australia, engineering exports to the country declined for the first time in November this year.
Continuing the strong growth, engineering exports to Russia surged 75% year-on-year in November 2023 to US$ 113.49 million. In cumulative terms, engineering exports to Russia were 138% higher at US$ 902.25 million in the April-November period of 2023 as compared to US$ 378.89 million in the same period of the previous year
Global trade trends can explain the overall engineering export decline to a significant extent. As per OECD, falling energy trade contributed to reduced trade volume in both North America and Europe. In the first nine months of 2023, merchandise imports in the EU declined by 4%, and the USA declined by 4% on a y-o-y basis.
