New Delhi: Exports of engineering goods from India surged by 13.5 per cent to $9.79 billion in May 2022 from $8.62 billion recorded in the same month last year, according to EEPC India monthly analysis of export trends.
Cumulative engineering exports for April-May 2022-23 were recorded at $19.39 billion, which is 16.84 per cent higher when compared with $16.60 billion of exports recorded in the corresponding period of the last year. The US remained the top market for Indian engineering goods in May, while shipments to China declined. As many as 18 out of 25 major markets for Indian engineering goods recorded positive growth in May 2022.
Exports to the US surged 63.2 per cent year-on-year to $1.81 billion in May this year as compared to $1.11 billion in the corresponding month of the previous year. Among other countries which recorded positive growth in imports from India in the month of May included Germany, Singapore, the UK, Italy, and Thailand.
Exports of engineering goods to China, however, declined 52 per cent year-on-year in May 2022 to $217.4 million as compared to $451.7 million in the same month last year.
The top 25 countries contribute almost 75 per cent of total engineering exports from India.
In terms of region, maximum growth in exports was witnessed in North America followed by the EU in both monthly and cumulative terms.
The share of engineering in total merchandise exports was recorded at 25.14 per cent in May while the share was 24.64 per cent for April-May 2022-23.
Commenting on engineering exports trends so far in this fiscal, EEPC India Chairman Mahesh Desai said, "Although the trend looks impressive, some concerns are still there. One of the biggest concerns is the Russia-Ukraine war that has severely hampered shipments to CIS nations and may have some ripple effect on the global economy."
He noted that the resurgence of COVID and subsequent damage of business prospects in some industrial cities may also impact the global trade scenario adversely.
"Rising oil and commodity prices have added to the uncertainty. A sharp depreciation of the rupee, although can help exports for the time being, continuous weakening may be damaging for the economy. At this juncture, signing of new FTA with UAE and Australia and ongoing negotiations with a number of developed nations may help exports from India to rise," Desai said.
As many as 28 out of 34 engineering panels witnessed positive year-on-year growth in exports during May 2022 vis-a-vis May 2021.
Some of the engineering products including `Copper and its products', ' Tin and products', `Ships, boats and floating structures', 'Bicycle and Parts', 'Prime Mica and Products' conceded decline in year-on-year exports during May 2022.
Similarly, on a cumulative basis also, 28 out of 34 engineering panels recorded positive growth during April-May 2022-23 over the same period last fiscal.
The data shows exports of iron and steel and its products rose 16 per cent in May to $2.63 billion as compared to $2.26 billion. The trend in exports of non-ferrous metals and products were also positive during May with the total exports rising 21 per cent year-on-year to $1.31 billion.
The engineering industry has achieved 15.3 per cent of the target of $127 billion (for FY23) in the first two months of 2022-23, EEPC analysis showed.