CHENNAI: The FTA with UAE and the anti-dumping duty imposed on Chinese products by the UK helped engineering goods achieve double-digit growth in September despite China flooding cheaper metals and metal products into the market.
Exports to UAE jumped 45 per cent during the April-September period and 50 per cent in September. UAE, which used to be the third or fourth largest market for engineering goods, has become the second largest market this year.
“Exports to the UAE have been improving due to the FTA signed between both countries. We have been shipping auto components, industrial machinery and equipment to the UAE,” said Arun Kumar Garodia, chairman, Engineering Export Promotion Council.
Similarly, UK exports have registered 22.5 per cent growth in September. According to EEPC, the anti-dumping duty on Chinese products and its China-plus-1 policy. The UK has imposed anti-dumping duties ranging from 23 per cent to 46.2 per cent on goods imported from Chinese companies.
Exports to France went up 105 per cent in September, though between April-September exports were just 7.4 per cent. According to Garodia, the industry will wait for a few more months to see whether it is a blip or a trend.
Mexico, Japan, Spain and Belgium are some of the other markets that supported growth. The United States, which is the largest market for engineering goods, too recorded a 8 per cent growth.
Overall, engineering goods grew 10.5 per cent in September. Cheaper Chinese imports pulled down exports of iron and steel by 26 per cent, copper and products 11 per cent, zinc and products 11 per cent and aluminium and products 10 per cent. Meanwhile, some of the industrial machinery products, electrical machinery, two and three-wheelers, auto tyres and tubes, aircraft and spacecraft parts, medical and scientific instruments and cranes lift recorded double-digit growth.
