According to EEPC India, India’s engineering exports to important markets including the United States, the European Union (EU), and China fell again in June 2023, suggesting a difficult global trade climate.
However, the shipments to CIS, North East Asia, and West Asia and North Africa (WANA) all increased within the same time period, according to the Engineering Exports Promotion Council of India (EEPC).
India’s engineering exports fell in June 2023 for the third consecutive month, falling 11% annually to USD 8.53 billion.
Exports to the US, EU, and China experienced a precipitous reduction, which drove the downturn.
While exports to the EU decreased 16.2% to USD 1.51 billion, exports to the US dipped 12.5% to USD 1.45 billion. Exports to China decreased 20% to 184 million USD. However, engineering exports to Russia increased by almost three times and reached a significant USD 116.9 million in June 2023.
In all, shipments to Russia increased dramatically from 89.7 million USD in the same time of the previous fiscal year to 337.4 million USD from April to June of the current fiscal year.
Due to declining worldwide demand, experts noted that the metal industry, particularly steel, had a substantial impact on this crisis. According to reports, the global steel demand decreased further as a result of China’s building industry’s slower offtake.
“The most important contribution to the decrease has been the metals industry. The reason for this is a decline in worldwide demand. Arun Kumar Garodia, chairman of EEPC India, stated that recent reports suggested that global steel demand has further decreased due to weaker offtake from China’s building industry.
Engineering exports had a smaller 6.95 percent year-over-year fall in June 2023 when iron and steel exports were excluded.
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In June 2023, 17 out of 34 engineering segments showed positive year-over-year increase in exports, while the remaining 17 segments saw negative growth.
Exports of important engineering goods like iron and steel, the majority of non-ferrous products (aside from copper, nickel and lead products), industrial machinery and parts, two- and three-wheelers, auto components and parts, auto tyres, rail transportation and hand tools decreased in June 2023 compared to June 2022. 1Q Net Profit Increases By 63% To Rs. 77 Cr.
