“Sanctions against Russia could provide opportunities for Indian engineering exporters”
The Russian-Ukrainian war poses significant risks to economies and global trade, but sanctions imposed by several developed countries on Russia could provide opportunities for Indian engineering exporters in the global market, the President of the Union said on Friday. EEPC India, Mahesh Desai.
Calling 2021-22 a remarkable year for engineering exports, Desai said several challenges have emerged on both global and domestic fronts that could have a chilling effect on maintaining the current export trend.
“The Russian-Ukrainian conflict is currently the most sensitive issue to disrupt the global economy, while the sudden increase in COVID cases in China is also a major concern for the global supply chain. Inflationary pressure in the States United States and real estate instability in China would have a dampening effect on trade growth.At home, the rise in steel prices and certain financial problems could also constitute a bottleneck for exports in the coming months,” he said.
Engineering exports crossed $11 billion in March 2022 for the first time in a month, and EEPC believes action is needed to maintain this momentum.
Analysis by the council shows that the country’s engineering exports registered a 19.7 percent year-on-year growth in March 2022, climbing to $11.13 billion from $9.29 billion in March 2021.
Exports from April to March amounted to $112.10 billion, registering a growth of 46.12% over the previous fiscal year. In FY22, engineering’s share of total merchandise exports was 26.7%.
No less than 32 of the 34 engineering product panels saw positive growth in 2021-22 compared to 2020-21.
India’s engineering exports surpassed the target of $107.34 billion for the financial year 2021-22 set by the Indian government.
Among India’s top 25 key markets for engineering goods, exports to the US jumped 61% in March to $2.02 billion from $1.26 billion in the same month last year . On a year-to-date basis, engineering exports to the United States amounted to $17.32 billion in FY22, compared to $11.33 billion in the prior fiscal year, recording growth of 52.8%.
Engineering exports to the UAE jumped 78.9% year-on-year in March 2022 to reach US$553 million. In fiscal year 2021-22, exports to the UAE grew by 74.3% to reach US$5.57 billion, compared to US$3.2 billion in fiscal year 2020- 21.
Engineering exports to China, however, fell in March 2022 by 44.5% year-on-year to $316 million. Growth for the full year, however, was positive, with total exports in FY22 to China amounting to US$5.45 billion, compared to US$4.84 billion in the year. previous. The top 25 countries such as the United States, UAE, China, Germany, Italy, and Singapore account for nearly 75% of the country’s total engineering exports.
Italy, UAE and Belgium were the top three importers of Indian iron and steel in 2021-22, while the US, Germany and UK were the top three importers of ` ‘Indian iron and steel products’ over the same period from 2020-21.
The United States was the largest importer of Indian “industrial machinery” in 2021-2022 in India’s global import of this product group. Thailand and Germany were the two immediate successors of the United States.
South Africa, Mexico and Nigeria were the top three importers of Indian automobiles in 2021-2022.