India’s engineering goods exports, which account for nearly one-fourth of the total merchandise exports, fell 0.30% to US$ 8.07 billion in November 2022 from US$ 8.10 billion in the same month a year ago.
Engineering Export Promotion Council (EEPC) India on December 23 attributed this fall in exports to the Covid surge in China and subdued global demand especially from Europe.
Also Read: India exports 5.62 lakh ton of sugar till December 9: AISTA
Cumulative engineering exports from April-November 2022-23 declined by 1.8% year-on-year to US$ 70.72 billion. "Since the record post-Covid recovery last fiscal, global demand has again exhibited a downward trend and signs of distress in the current fiscal,” said EEPC India Chairman Arun Kumar Garodia.
“Demand continues to remain subdued in the European region primarily due to high energy prices and lower manufacturing activity. This was mainly triggered by the Ukraine-Russia conflict which started last February.”
Further, Garodia said China, one of the biggest trading partners of India, continues to grapple with rising Covid cases and a growing real estate crisis leading to low demand.
EEPC India said there is a growing premonition among the exporting community that the US Central bank’s monetary tightening policy would hit interest-sensitive spending not only in the US but across the world.
Exports to China continued the downward trend and plummeted 40% in November this year to US$ 263.62 million from US$ 439.63 million in November 2021. Cumulatively, engineering exports to China dropped 58.2% to US$ 1.74 billion in April-November 2022-23 compared to US$ 4.18 billion in the same period of the previous year.
The United States of America remained the top destination for India's engineering goods in November 2022 at US $1.47 billion, translating into a growth of 14% year-on-year.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
