India’s engineering exports declined for the third straight month in June 2023, falling 11 per cent year-on-year to USD 8.53 billion.
The decline was led by a sharp fall in exports to the US, EU, and China, it said.
Exports to the US fell 12.5 per cent to USD 1.45 billion, while exports to the EU fell 16.2 per cent to USD 1.51 billion. Exports to China fell 20 per cent to USD 184 million. However, an almost threefold increase in engineering exports to Russia reached a substantial USD 116.9 million in June 2023.
Cumulatively, during the April-June period of the current fiscal year, exports to Russia witnessed a remarkable four-fold surge, totalling USD 337.4 million compared to USD 89.7 million in the same period of the previous fiscal year.
Experts pointed out that the metal sector, particularly steel, played a significant role in this downturn, owing to weakening global demand. Reports indicated that global steel demand weakened further due to slower offtake from China’s construction sector. “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 EEPC India Chairman Arun Kumar Garodia. Excluding the export of iron and steel, engineering exports recorded a lower 6.95 per cent year-on-year decline in June 2023.
While 17 out of 34 engineering segments witnessed positive year-on-year growth in June 2023, the remaining 17 segments experienced negative growth in exports.
Major engineering products such as iron and steel, most non-ferrous products (excluding copper, nickel, and lead products), industrial machinery and parts, two- and three-wheelers, auto components and parts, auto tyres, railway transport, and hand tools saw declines in exports during June 2023 compared to June 2022.
