Engineering goods shipments to China more than doubled in November, 2021 to US$ 434.6 million as compared to US$ 205.3 million in the same month last year.
The US, however, remained top importer of Indian engineering goods at US$ 1196 million during this period, registering a growth of 36.6% over US$ 875 million in November, 2020.
The UAE was the third biggest market for Indian engineering goods with total shipment value at US$ 404.4 million in the previous month.
India’s engineering exports continued to grow in November 2021 but a decline was observed in the value of shipment.
An EEPC India analysis of the monthly data showed engineering exports in November 2021 slowed down to US$ 7.7 billion from 9.03 billion in October 2021. However, the growth was still substantial at 37.12% over the exports of November 2020 at US$ 5.62 billion.
Engineering exports in November 2021 was even higher by 25.74% as compared to exports in November 2019 when the economy was free of any pandemic effect.
After four months of continually hitting almost the US$ 9 billion mark, engineering exports in November came down to around US$ 7.7 billion.
“The slowdown seems indicating the distress exporters are facing given volatility in world demand and the uncertainty regarding the pandemic which has been triggered by the new variant Omicron. Experts around the globe have already predicted that while the global trade growth is remarkable it is not even across the countries,” EEPC India Chairman Mr Mahesh Desai said.
Recent reports by the World Trade Organization (WTO) and United Nations Conference on Trade and Development and the UNCTAD have flagged factors of uncertainty such as China’s ‘below expectation’ growth, large and unpredictable swings in major markets that may mar the growth momentum of global trade in the coming days.
“In this situation the exporters need complete support within the country such that they may remain competitive even during the upcoming uncertainties. We therefore urge the government to look into the issues of growing inflation, rising raw material prices such as steel and logistics issues such as scarcity of containers, with growing urgency,” Mr Desai said.
Meanwhile, the share of engineering in total merchandise export was 26.89% in November 2021 as against 26.37% in October 2021, 26.65% in September 2021 and 27.68% in August 2021.
On a cumulative basis, the share was 27.31% during April-November 2021-22.
As regards various segments of the sector, 28 out of 33 engineering panels witnessed positive year-on-year growth in exports during November 2021 while on a cumulative basis for April-November 2021-22, 31 out of 33 panels experienced a growth.
Exports rose to 21 out of 25 top export destinations and all regions.
Italy, China and Belgium were the top three importers of Indian Iron and Steel during April-November 2021 whereas US, Germany and UK were the top three importers of India’s ‘Products of Iron & Steel’ during the same period as compared to April-November 2020.
The US was the largest importer of Indian ‘Industrial machinery’ during April-November 2021 in India’s global import of the product group. Thailand and China were the two immediate followers of the US.
South Africa, Mexico and Nepal were top three importers of India’s automobiles during April-November 2021 in India’s global exports respectively over the same period last fiscal.
China, South Korea and the US were the top three importers of India’s non-ferrous metals and products’ during April-November 2021 whereas US, Germany and Poland were the three top importers of Indian Electrical Machinery and Components during the same period.