New Delhi, Dec. 27: India’s engineering exports to east Asian and neighbouring countries have witnessed strong growth during April-November at a time demand from traditional markets such as the US and EU remained subdued because of the global economic downturn.
Growth of engineering exports stood at 5.6 per cent during April-November against a negative growth of 16.8 per cent in the same period a year ago. In dollar terms, overall shipments rose to $38.85 billion from $36.53 billion a year ago.
“The Japanese economy is doing rather well under Prime Minister Shinzo Abe’s new economic policy direction, while the manufacturing base in South Korea kept the momentum alive despite problems in the West,” Anupam Shah, chairman of the Engineering Export Promotion Council, India, said.
The free trade agreements and other pacts with South Korea and Japan have helped to boost shipments of engineering products, one of the major contributors to the country’s export basket.
Engineering exports to Japan grew 17 per cent to $568 million from $485 million in April-November 2012.
Shipments to South Korea jumped well over 13 per cent to $739 million.
Engineering exports include nuclear reactor parts, aerospace components, automobiles, bicycles, steel and iron products, non-ferrous metals and transport equipment.
Trade with neighbouring countries such as Bangladesh, Sri Lanka and Nepal also witnessed a robust growth.
Engineering despatches to Sri Lanka rose 18.57 per cent to $1.3 billion from $1.1 billion a year ago. Shipments to Nepal were up 20.84 per cent to $577 million from $477 million and exports to Bangladesh expanded 12.32 per cent to $790.32 million.
“Shipments to the US dropped 9.19 per cent to $3.90 billion from $4.3 billion and the country is among India’s largest destination,” the EEPC said. Exports to Germany fell around 6 per cent to $1.3 billion.
“The signs of recovery in some of the key western countries such as the US are hazy. This way, there was a drop in the overall engineering exports by over 14 per cent in November,” Anupam Shah said.