After contracting for five successive months, India’s engineering exports, which account for about a quarter of its total goods exports, are likely to continue to see lower orders across key markets, including Europe and China.
Engineering exports to China fell 40% year-on-year in November though their overall moderation from November 2021 levels was only 0.3%, and the apex engineering exporters’ body EEPC India expects this trend to continue given the spike in COVID cases in that country along with its persistent and worsening real estate sector crisis.
Cumulatively, engineering exports have declined by 1.8% between April and November this year to $70.72 billion, which constitutes about 56% of the $127-billion target set by the government for the sector’s exports in 2022-23, but shipments to China have dropped by a far steeper 58.2% to $1.74 billion over the same period.
“Since the record post-Covid recovery last fiscal, global demand has again exhibited a downward trend and signs of distress in the current fiscal. Demand continues to remain subdued in the European region primarily due to high energy prices and lower manufacturing activity,” said EEPC India chairman Arun Kumar Garodia.
While the recent withdrawal of the export duty on select steel items will likely restore the exports of iron and steel in coming months, Mr. Garodia said the exporting community expects the U.S. Federal Reserve’s monetary tightening policy to hit interest-sensitive spending not only in the U.S. but across the world.
For all the latest business News Click Here
