Engineering Exports to Russia Double in FY24 Till February, US Dips By 7%

Indian engineering goods exports to Russia nearly doubled to US$1.22 billion in the current financial year 2023-24 (up to February) from US$ 616.68 million in the previous financial year while shipments to the US dipped 7% year-on-year during this period to US$15.95 billion. Among other key markets, India's engineering goods exports to China witnessed a marginal decline in FY24 till February at US$ 2.38 billion as against US$ 2.40 billion in the corresponding period of the previous financial year

New Delhi: Engineering exports to Russia have doubled to $1.22 billion in FY24 up to February, while the shipments to the US have dipped by 7 per cent in the same period.. The Free Trade Agreement (FTA) with UAE and the negotiations with the Gulf Cooperation Council (GCC) have been quite effective as West Asia and North Africa’s share in India’s engineering export basket increased from 12% last year to 15% this year, according to EEPC India chairman Mr Arun Kumar Garodia.

Indian engineering goods exports to Russia nearly doubled to US$1.22 billion in the current financial year 2023-24 (up to February) from US$ 616.68 million in the previous financial year while shipments to the US dipped 7% year-on-year during this period. In FY24 up to February, the value of engineering goods exports to the US stood at US$ 15.95 billion as compared to US$17.10 billion in the same period of the preceding year.

Among other key markets, India's engineering goods exports to China witnessed a marginal decline in FY24 till February at US$ 2.38 billion as against US$ 2.40 billion in the corresponding period of the previous financial year.

Engineering shipments to UAE and Australia with which India signed a FTA remained positive in FY24 up to February despite the year being quite challenging for global trade. While engineering exports to the UAE rose 16% year-on-year to US$ 5.22 billion in the current fiscal till February, shipments to Australia increased 5% to US$ 1.30 billion in this period.

Overall, cumulative engineering exports started narrowing down and witnessed growth, recorded at US$ 98.03 billion during April-February 2023-24 as against US$ 96.84 billion during April-February 2022-23, securing 1.23% growth.

"In the last few months, engineering exports from India have been on a steady growth path. In February 2024, India’s engineering exports reached US$ 9.94 billion recording the highest y-o-y growth (15.9%) in the fiscal 2023-24. The remarkable performance of the sector in the last three months made it possible for the cumulative exports also to record growth," said Mr Garodia.

He further added "The FTA with UAE and the negotiations with GCC have been quite effective as West Asia and North Africa’s share in India’s engineering export basket increased from 12% last year to 15% this year. This performance has been possible despite the difficult global trade situation."

As per studies, 2023 witnessed the slowest trade growth in the last 50 years outside the global recession years. The continuing geopolitical tensions and lack of demand across the globe marred any recovery efforts made in the post-pandemic era.

"As India’s current performance stabilizes, we are hopeful that with a positive turn of the tide in global trade, our exporting community will be able to lift their export performance," Mr Garodia said.

India’s engineering exports achieved year-on-year growth for the third straight month to February 2024 and the rate of growth at 15.9% was the highest in fiscal 2023-24.

The share of engineering exports in India's total merchandise exports increased to 24.01% in February 2024 from 23.75% in January 2024. On a cumulative basis, the share was 24.82% during April-February 2023-24.

In February 2024, as many as 28 out of 34 engineering panels witnessed positive year-on-year growth, while 6 remaining engineering panels experienced a decline. Exports of Zinc and products, Nickel and products, Motor Vehicle/Cars, Railway Transport and parts, Ships and Boats, and Office Equipment dropped.

On a cumulative basis, as many as 20 out of 34 engineering panels recorded positive growth and the remaining 14 engineering panels including Iron and Steel, some non-ferrous sectors including Aluminium, Zinc, Nickel, etc, sectors from Industrial Machinery and Automobiles recorded negative growth during April-February 2023-24.

Region-wise, positive year-on-year growth in February 2024 was observed in almost all the regions like N E Asia, WANA, Latin America, EU, CIS, Oceania, North America, and Sub-Saharan Africa. Only ASEAN and South Asia reported declines.

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