India’s top importer of engineering goods continued to be held by the US, with total exports growing 27.23 per cent in July to USD 1,272 million as compared to the same month a year ago
Exports of engineering goods reached an all-time high in July 2021 at USD 9.14 billion, accounting for one-fourth of the country’s total merchandise exports. The growth was led by strong demand from markets of the US, Europe and UAE, EEPC India said in a statement.
As many as 20 out of 25 key nations accounting for 77 percent of India’s total engineering exports recorded positive monthly growth during July 2021 over July 2020.
India’s top importer of engineering goods continued to be held by the US, with total exports growing 27.23 percent in July to USD 1,272 million as compared to the same month a year ago.
UAE ranked as India’s second largest export destination for the third time in a row with July shipment nearly doubling to USD 518 million as against USD 269.29 million in July, 2020.
Exports to China stood at third position and declined 13 percent to USD 532 million as compared to the same month last year.
While 28 engineering products groups out of 33 recorded positive growth in July, five panels posted a decline. The year-on-year decline in Zinc and products was seen to the extent of 2.8 per cent, it was 8 percent lower in electrical machinery and equipment and a fall of 20.8 per cent in the case of ships, boats and floating bodies. The monthly decline in product group aircraft and spacecraft was 18.4 per cent in July.
Automobile sector (combination of two and three-wheelers and motor vehicles and cars) recorded a massive jump in exports to the extent of 68.2 percent primarily due to sharp jump in exports of two and three wheelers by 99.7 percent and motor vehicles by 58 percent during July 2021.
In cumulative terms, the automobile sector experienced a positive growth of more than 140 percent from USD 1295.5 million in April- July 2020-21 to USD 3110.3 million in April-July 2021-22.
Mexico, South Africa and Nigeria were top three importers of India’s automobiles during April-July 2021 with 12.15 percent, 11.36 percent and 5.64 percent share in India’s global exports respectively over the same period last fiscal.
Merchandise exports in July 2021 set a new all-time high on a monthly basis at USD 35.43 billion by surpassing the previous high of USD 34.5 Billion achieved in March 2021.
The engineering goods exports crossed USD 9 billion for the first time to reach an all-time high of USD 9.15 billion (US$ 9,147.85 million) on a monthly basis by surpassing the previous record high of USD 8.8 billion in June 2021.
“The record high exports of engineering goods reflect the overall trend in country’s merchandise exports and also global trend. While we are bullish, potential risks and uncertainties cannot be ignored. Some of the major economies in developing Asia have been impacted by the pandemic,” said EEPC India chairman Mahesh Desai.
Desai noted that support of the government would be needed in difficult times and requested for reviewing the refund rates under Remission of Duties and Taxes on Exported Products (RoDTEP).
The EEPC India chairman said that iron and steel which is one of the primary inputs of engineering goods have been kept out of the purview of the RoDTEP scheme thus reducing the efficacy of the benefits.
“We have brought the issue to the notice of the government and hope the anomalies in the RoDTEP will be removed soon. This along with other policy support would be key to the sector achieving USD 107 billion export target in the current fiscal,” said Desai.
