It is unlikely that the current export trend will be easy to maintain in the face of global and domestic challenges
It is unlikely that the current export trend will be easy to maintain in the face of global and domestic challenges
The association of engineering exporters, EEPC India, said it expects sanctions imposed by many countries on Russia in the wake of the Ukraine war to help open up opportunities for Indian exporters.
Sanctions could offer opportunities for Indian engineering exporters to replace Russia in the global market, Chairman Mahesh Desai was quoted in the EEPC statement as stressing how the war posed significant risks to global economies and trade.
In addition to the war, a surge in COVID-19 cases in China poses a major challenge to the smooth functioning of global supply chains. Other factors detrimental to maintaining the ‘good show’ of FY22 are inflationary pressures in the US, housing instability in China and rising steel prices in India. Some financial problems are also likely to act as a bottleneck for exports in the coming months, he said.
India’s machinery exports rose more than 46% to US$112.10 billion in FY22, beating the center’s target of US$107.34 billion. No fewer than 32 of the 34 engineered product panels saw growth during the fiscal year. The share of mechanical engineering in total goods exports was 26.7%, the EEPC said in the statement.
Monthly machinery exports surpassed $11 billion in March for the first time. At $11.13 billion, that was a 19.7% increase from $9.29 billion a year earlier.
The top 25 export destinations, including the US, UAE, China, Germany, Italy and Singapore, accounted for almost 75% of India’s total engineering exports. Exports to China, however, fell 44.5% to $316 million in March. For the fiscal year, total exports to China were higher at $5.45 billion ($4.84 billion).
Engineering exports to the U.S. grew nearly 53% in FY22 to $17.32 billion. The US was the largest importer of Indian industrial machinery during the year, followed by Thailand and Germany. Italy, United Arab Emirates and Belgium were the top three importers of Indian iron and steel while the United States, Germany and the United Kingdom were the top three importers of Indian iron and steel products during the fiscal year.
