Key markets remain positive for engineering exports
Engineering shipments to the US rose 6 per cent year-on-year to $1.37 billion, those to China increased 15.1 per cent to $244.34 million last month
Chennai: Despite the Red Sea crisis, top markets, including the US, China, UAE and Russia remained positive for engineering exports in January. Saudi Arabia and the UK recorded high double digit growth.
Engineering goods exports to as many as 13 out of the 25 top markets that contribute to 76 per cent of the total shipments recorded positive year-on-year growth in January 2024. Exports to almost all major regions remained positive, barring ASEAN, Sub-Saharan Africa, and Oceania.
Engineering shipments to the US rose 6 per cent year-on-year to $1.37 billion, those to China increased 15.1 per cent to $244.34 million last month. The value of engineering shipments to UAE in January this year was $390.80 million higher by 3.8 per cent than the year-ago month.
Engineering exports to Russia continued to surge and grow 30.8 per cent to $ 89.34 million. Shipments to Saudi Arabia grew 68 per cent to $456 million and the UK exports increased 41.2 per cent to $371.97 million.
Meanwhile, engineering export growth was negative in the case of countries like Singapore, South Africa, Nepal, Australia, and Malaysia.
“Despite challenges posed by the Red Sea crisis, India's engineering exports show promise for the future. The disruption in trade routes has hindered potential growth, but there remains optimism that by the end of the fiscal year, India will see positive growth in this sector,” said EEPC India chairman Arun Kumar Garodia.
The ongoing negotiations for key Free Trade Agreements (FTAs) with the UK, Oman, and the European Free Trade Association (EFTA) bloc hold significant potential for bolstering exports.
“Successful conclusions of these agreements could open up new avenues and opportunities, further contributing to the growth and expansion of India's engineering exports on the global stage,” Garodia added.
Overall, engineering exports were 4.2 per cent higher at $8.76 billion in January. However, on a sequential basis, exports were down compared to the December exports which had crossed $10 billion with 9.8 per cent year-on-year growth.
The share of engineering exports in India's total merchandise exports dropped slightly to 23.75 per cent in January 2024 from 23.93 per cent in December 2023.