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Engineering exports surge for third straight month

The share of engineering goods in total merchandise exports rose to 25.44% in May from 24.83% in April and 25.36% in March. The growth on a cumulative basis was 25.23% during April-May.

Engineering exports surge for third straight month
Volumes for POL and other goods were weak with POL volumes declining at 4% CAGR vs May-19 and other goods volumes declining at 7% CAGR vs May-19.

India’s engineering exports crossed $8 billion up to May this fiscal, witnessing growth for the third straight month.

The global markets for 30 of the 33 engineering goods categories remained robust, but exports of lead (21%) and zinc (2%) products and of ships and boats (16%) declined during the period. The share of engineering goods in total merchandise exports rose to 25.44% in May from 24.83% in April and 25.36% in March. The growth on a cumulative basis was 25.23% during April-May.

Even compared to May 2019, when economic activities were normal, shipments of engineering items clocked a growth of 14.65% in May this year, EEPC India said.

Among the top 25 key markets for Indian engineering goods, 22 recorded positive growth, but shipments and export volumes to China, Indonesia, Malaysia and Saudi Arabia declined. The US topped the list, with export shipments growing 56% valued at $ 1,022 million. UAE ranked second, growing 70% year-on-year in May. The European Union accounted for 21%, North America 16.8% and ASEAN 15.7% of India’s total engineering exports during April-May.

“To keep the momentum going, India needs to vaccinate most citizens at the earliest,” EEPC India chairman Mahesh Desai said. EEPC expects the government to provide targeted support to the industry as there are predictions of repeated waves of pandemic, he said.

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