Continuing the downtrend, engineering
goods exports to China nosedived over 70 per cent in August 2022 to $173.7
million as compared to $619.5 million in the same month last year. As per EEPC
India analysis, engineering exports to the European Union (EU) fell 27.3 per
cent year on year to $1.47 billion
Engineering
goods exports to China and the European Union fell in August due to demand
slowdown while the shipments to the United States rose during the month, the
Engineering Export Promotion Council (EEPC) of India said on Saturday.
Continuing the downtrend,
engineering goods exports to China nosedived over 70 per cent in August 2022 to
$173.7 million as compared to $619.5 million in the same month last year. As
per EEPC India analysis, engineering exports to the European Union (EU) fell
27.3 per cent year on year to $1.47 billion.
With the demand from
China, the EU, and other key markets slowing down substantially, overall
engineering exports in August 2022 dropped by 12.64 per cent to $8.4 billion as
compared to $9.6 billion in August 2021.
The 15 per cent export
duty on steel continued to weigh on engineering exports as India’s iron and
steel exports dropped by 62.2 per cent in August 2022 on a year-on-year basis.
Cumulative engineering
export during April-August 2022-23 was recorded at $46.6 billion as against
$45.1 billion during the April-August period of 2021-22, managing 3.33 per cent
growth.
After a spell of positive
year-on-year growth since February 2022, Indian engineering exports for the
first time dropped drastically in the month of August 2022.
“The preliminary data
indicates that fall in iron and steel exports have been the biggest contributor
to this decline – iron and steel exports in the month of August 2022 declined
by 62.2 percent over the same period last year. In cumulative terms, the decline
was around 37 percent. The 15 percent export duty on certain steel products has
seriously daunted India’s export capability in many potential markets including
EU countries,” said Mahesh Desai, Chairman, EEPC India.
Desai stated that the
industry believes that if the duty continues it will seriously impact our
exports, especially at a time when global conflicts are generating new
opportunities in many markets.
“The iron and steel sector
is already going through several challenges such as the continuation of the EU
safeguard on Indian steel and the impending EU GSP withdrawal,” he added.
Amid slowing demand from
various markets, the United States (US) continued to register growth and
remained the top importer of Indian engineering goods in August 2022.
Engineering shipments to
the US grew 14.2 per cent year-on-year in August to $1.58 billion as against
$1.39 billion in the same month last year. Cumulative growth during the
April-August period was higher by 33.7 per cent.
As per the Quick Estimates
of the Ministry of Commerce and Industry, Government of India, the share of
engineering in total merchandise exports was recorded at 24.44 per cent in
August 2022 while the claim was 24.10 per cent on a cumulative basis.
“Several international
agencies have predicted an economic slowdown in the US – the biggest market for
Indian iron and steel. In such a scenario, we feel that the government should
reconsider the export duty on steel such that the industry can make the most of
the opportunities and also at the same time face the global challenges,” EEPC
India Chairman said.