Key Takeaways
- Indian engineering exports registered a 4.36 percent year-on-year growth in August 2024, with a cumulative value of US$46.41 billion for the April-August period.
- The growth rate is expected to improve on the back of various measures announced in the Budget 2024 and a positive outlook for the global economy.
- The major factors affecting Indian engineering exports include global challenges, competitive pricing from China, geopolitical conflicts in Europe and West Asia, and protectionist policies in the USA and EU.
Kolkata: Despite several global challenges, Indian engineering exports registered positive year-on-year growth for the fourth month in a row in August 2024 and rose 4.36 percent year-on-year to US$9.44 billion from US$9.05 billion in the corresponding month last year, according to EEPC India.
On a cumulative basis, the value of total engineering goods exports stood at US$46.41 billion for the April-August period of the current financial year, thus registering 4.22 pc year-on-year growth over the same period last fiscal, EEPC India chairman Arun Kumar Garodia said in a statement.
The performance of Indian engineering exports would have been better if not for the decline in iron and steel exports. Over 6 months, the decline in iron and steel exports has been the main reason for the muted performance of engineering exports from India. This could be partly attributed to China’s competitive pricing, geopolitical conflicts in Europe and West Asia, and protectionist policies in the USA and EU.
Additionally, there is growing concern among the exporting community about Chinese steel entering India through FTA routes, bypassing tariffs intended to protect domestic production. To address this issue, it is essential to review and renegotiate these FTAs.
“Going forward, we expect the engineering goods exports to improve on the back of various measures announced in the Budget 2024 and a positive outlook for the global economy. We remain cautiously optimistic about full-year positive growth in engineering exports,” Garodia said.
