Engineering exports to Russia have continued their upward trajectory, experiencing a remarkable surge in July 2023. According to data disclosed by the Engineering Export Promotion Council (EEPC), these exports exceeded expectations by more than doubling, reaching a total of USD 123.65 million. This noteworthy achievement stands in stark contrast to the corresponding period just a year ago when the exports to Russia were recorded at USD 55.65 million.
In sharp contrast, the United States, a significant trading partner, witnessed a decline of 10.4 percent in engineering exports during the same period this year. The exports to the US plummeted to USD 1.44 billion, painting a less optimistic picture. Similarly, engineering shipments to China also faced a setback in July, declining by 10 percent year-on-year to USD 197.98 million, as indicated by the data released by the EEPC.
Amidst the dynamics of these export figures, it’s important to highlight that among the 25 pivotal markets for Indian engineering goods, which collectively contribute to over 76 percent of total exports, a concerning trend has emerged. Fourteen of these key markets experienced a decline in year-on-year exports during July, raising concerns about the overall trajectory of engineering exports.
The data provided by the EEPC unveiled that India’s broader engineering exports experienced a decline of 6.62 percent during the review month, falling from USD 9.37 billion in the previous year to USD 8.75 billion. This decline can be attributed to multiple factors including a dip in exports of iron, steel, and aluminium, coupled with a diminished global demand.
In light of these circumstances, Arun Kumar Garodia, the Chairman of EEPC India, expressed the imperative need for India to explore and diversify its export markets. He emphasised the pressing situation, highlighting the consecutive eight months of year-on-year decline since December 2022 that reflects the sombre state of global trade. He noted this as an opportune moment for Indian exporters to explore the untapped potential of the African and Latin American markets, providing a new direction for their efforts.
The recent data regarding India’s engineering exports paints a mixed picture of success and challenge. While exports to Russia have surged remarkably, key partners like the US and China have witnessed setbacks. The call for diversification resonates deeply in this scenario, pushing Indian exporters towards the promising landscapes of the African and Latin American markets.
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