India’s engineering exports nosedive
Sri Lanka has topped the “list of drop” in India’s engineering exports in April showing a degrowth of over 90 per cent. It is followed by China and the UAE as the engineering exports overall dipped by 19 per cent in April.
Engineering exports also slipped in terms of its contribution to the country’s overall export basket, according to an Engineering Export Promotion Council of India ( EEPC India) analysis.
Engineering exports to Sri Lanka fell to mere $ 63 million in April 2016 from $ 648 million in the same month last year.
Likewise, shipments to the UAE fell by 46 per cent to $ 331 million from $ 613 million in the face of the Middle East witnessing a major slump in investment, in the oil and infrastructure sectors, EEPC India said.
To China, India’s engineering exports, which mainly comprise basic metals and iron ore, saw a drop of 57.6 per cent to $ 102.6 million from $ 242.50 million as the Chinese economy is facing a major upheaval.
While the US remains the top destination for the engineering exports with shipments totalling $ 502 million in April 2016 from $ 625 million a year ago, the fall to this market has also been above 19 per cent on the back of a sharp drop in exports of steel and products.
“All the major markets for us have been disappointing for us. The situation has never been as bad in the last several years. Such a situation warrants a big stimulus from the government in terms of interest subvention, hike in the drawback rates and further improvement in the ease of doing business,” said EEPC.
The fall in engineering exports in April 2016 is mainly driven by sectors like aircraft and spacecraft, non- ferrous sectors including zinc, tin and nickel products and iron and steel products. India’s merchandise exports in April 2016 were valued at $ 20.6 billion — down 6.74 per cent against $ 22 billion in the same month last year — a decline for the 17th straight month. Cumulatively, exports in FY16 were down 15.85 per cent at $ 261.14 billion against $ 310.34 billion.