India's Exports to Bangladesh, Russia Decline Sharply
Indian engineering exports to Bangladesh and Russia decline in July, despite overall growth in shipments
Chennai: Conflict-ridden markets like Bangladesh and Russia reported a slumping engineering goods offtake in July, despite the industry clocking a positive growth in shipments.
Engineering exports to Bangladesh fell 11.8 per cent year-on-year to $153.78 million in July 2024, against $174.35 million in July 2023. The value of engineering exports to Russia declined 26.8 per cent in July this year to $90.39 million from $123.55 million in the same month last year.
During the month, Bangladesh has been seeing a mass upheaval, which did not quell even after the exit of Sheikh Hasina from Prime Ministership. As per reports, Russia’s economy is facing serious constraints due to the heavy sanctions from the western world and heavy losses in Ukraine.
However, Indian engineering exports continued their growth run for the third month to July 2024 albeit a lower 3.66 per cent year-on-year growth as against over 10 per cent in June 2024. The total value of engineering goods exports in July 2024 stood at $9.04 billion.
Out of the 25 key destinations for Indian engineering goods, exports were positive in the case of 10 countries while negative growth was witnessed in the case of 15 countries. The top 25 countries contribute 75.5 per cent of total engineering exports to the country.
Engineering goods exports to the US recorded 4.2 per cent year-on-year growth in July this year. Engineering exports to the UAE was up 65.6 per cent, while exports to Saudi Arabia rose 9.2 per cent.
Growth in engineering exports in July 2024 was attributed to a decent rise in shipments of electrical machinery, automobile and auto components, and construction machinery including cranes, lifts, and winches among others.
Cumulative engineering exports during April-July 2024-25 were higher by 4.18 per cent.
"The situation in overall engineering exports is expected to improve in the future as global forecasts for GDP growth remain at around 3 per cent for 2024, with the short-term trade outlook being cautiously optimistic," EEPC India Chairman Arun Kumar Garodia said.