The United States is still the leading destination for India’s Engineering goods exports in the fiscal year 2022-23 with the value of a total shipment recording 6.8% year-on-year growth to 18.67 billion dollars. The United Kingdom, Singapore, Germany, Mexico, Saudi Arabia, and Indonesia are some of the other important markets that experienced strong development. Exports of engineering products to China kept declining month after month. Engineering exports to China decreased by 52.4% year over year to 2.63 billion dollars in the Financial Year 2023 from 5.53 billion dollars the previous year.
Exports of engineering products to China kept declining month after month
Turkey, Thailand, and the United Arab Emirates were among the other major markets that experienced negative growth during the year. Engineering exports from India concluded the fiscal year 2022–203 at 107.04 billion dollars, a decrease of 4.57% from the fiscal year 2021–2022 when they had reached a record high of 112.6 billion dollars. In rupee terms, engineering exports increased by 2.77% year over year. This difference resulted from the rupee’s sharp annual fall versus the US currency in 2022–2023.
The key causes of the lower shipment of engineering goods from India during FY2023, in addition to the geopolitical issue in the CIS region caused by the conflict between Ukraine and Russia, are the slowdown in North East Asia, particularly China, the crisis in South East Asia, and the slowdown in Europe. Arun Kumar Garodia, chairman of EEPC India, The global demand was weak, particularly in the metal sector, which directly contributed to the loss. Global trade has generally had the challenging fiscal year of 2023. While the Covid-19 pandemic was finally under control at the close of the fiscal year 2022, it was quickly eclipsed by the Ukraine-Russia crisis, which significantly hurt the economies of Central Asia and Europe.
The global demand was weak, particularly in the metal sector, which directly contributed to the loss
He further said, we value the efforts made by the Ministry of Commerce, which has consistently been open to coming up with relief measures. A catalytic impact has also resulted from the honourable prime minister Shri Narendra Modi’s inspiring statements. The business is grateful for the introduction of the foreign trade policy 2023, which covers all the crucial facets of the trade, such as ease of doing business, including the states and the districts in export strategy, the introduction of Rupee trade, infrastructure and logistics, and export incentives.
Out of 34 engineering panels, a panel-wise study reveals that 22 saw increases in exports during 2022–2023 while 12 reported decreases in shipment. With a 41.52% decrease in exports during 22–23 compared to the prior fiscal year, steel and iron were the main culprits behind the reduction in engineering exports. With the exception of iron and steel panels, engineering exports increased by 4.91% in 2022–2023 compared to the prior fiscal year.
For the fifth straight month, through March 2023, and for eight months during the fiscal year 2023, Indian engineering exports were in decline. Engg exports dropped from 11.01 billion in March 2022 to 10.19 billion in March 2023, a 7.49% decrease.