Engineering exports to China fall 70% in August
Engineering goods exports to China fell by over 70 per cent in August 2022 to $173.7 million because of a slowdown in demand and shipments to the European Union (EU) fell 27.3 per cent year-on-year to $1.47 billion.
“After a spell of positive year-on-year growth since February, Indian engineering exports for the first time dropped drastically in August. The 15 per cent export duty on certain steel products has seriously daunted India’s export capability in many potential markets, including EU countries,” EEPC India chairman Mahesh Desai said.
With the demand from China, the EU, and other key markets slowing down substantially, overall engineering exports in August dropped by 12.64 per cent to $8.4 billion from $9.6 billion in August 2021.
Cumulative engineering exports during April-August 2022-23 was recorded at $46.6 billion against $45.1 billion during the April-August period of 2021-22, a 3.33 per cent growth.
“Preliminary data indicates that a fall in iron and steel exports have been the biggest contributor to this decline — iron and steel exports in August declined by 62.2 per cent over the same period last year. In cumulative terms, the decline was around 37 per cent,” Desai said.
He said the industry believes that if the duty continues it will seriously impact exports, especially at a time global conflicts are generating new opportunities in many markets. “The iron and steel sector is already going through several challenges such as the continuation of the EU safeguard on Indian steel and the impending EU GSP withdrawal,” he added.
Amid slowing demand from various markets, the US continued to register growth and remained the top importer of Indian engineering goods in August.
Engineering shipments to the US grew 14.2 percent year-on-year in August to $1.58 billion against $1.39billion in the same month last year.
According to the Quick Estimates of the ministry of commerce and industry, the share of engineering in total merchandise exports was recorded at 24.44 per cent in August while the claim was 24.10 per cent on a cumulative basis.
As many as 20 out of 34 engineering panels witnessed positive year-on-year growth in exports during August vis-a-vis the same month last fiscal.