Export of engineering goods: In the fiscal year 2022–2023, the US will continue to be India’s largest export market for engineering goods, with total shipments valued at USD 18.67 billion, up 6.8% annually.
The UK, Germany, Singapore, Saudi Arabia, Mexico, and Indonesia are some of the other important markets that had strong development. Month after month, China’s imports of engineering products decreased. Engineering shipments to China declined by 52.4% year over year in FY23, from USD 5.53 billion to USD 2.63 billion.
UAE, Turkey, and Thailand were among the other leading markets with negative growth during the year.
Engineering exports from India ended fiscal 2022–23 at USD 107.04 billion, a decrease of 4.57 percent from its record high of USD 112.16 billion during fiscal 2021–22.
However, engineering exports saw a 2.77 percent year-over-year increase in rupee terms. The rupee’s significant year-over-year decline against the US dollar in 2022–2023 was the cause of this discrepancy.
The key causes of India’s lower shipping of engineering goods during FY23 included the geopolitical crisis in the CIS region brought on by the Russia-Ukraine war, the economic slowdown in North-East Asia, particularly China, the crisis in South-East Asia, and the slowdown in Europe.
“The decline was a direct result of the depressed global demand, especially in the metal sector. FY23 in general has been a difficult year for global trade. While the end of FY22 marked the recovery from the COVID pandemic it was soon overshadowed by the Russia-Ukraine crisis which dented the European and Central Asian economies to a significant extent,” said EEPC India Chairman Arun Kumar Garodia.
He further said the decline could have been sharper if timely government measures had not been made.
“We appreciate the efforts made by the Ministry of Commerce which has always been forthcoming in coming up with relief measures. Besides, the encouraging words by Hon’ble Prime Minister Shri Narendra Modi have had a catalytic effect. We are grateful for the launch of the Foreign Trade Policy 2023 which covers all important aspects of trade including ease of doing business, introduction of Rupee trade, including the states and the districts in export strategy, export incentives, and infrastructure and logistics,” said Garodia.
According to the Quick Estimates of the Central government’s Ministry of Commerce, engineering exports made up 23.92% of all goods exported from India in Fiscal 2022–23, down from a higher 26.58% in Fiscal 2021–22.
Out of 34 engineering panels, panel-wise analysis revealed that 22 saw increases in exports during 2022–2023 while 12 reported decreases in shipment.
The major culprits behind the drop in engineering exports were iron and steel, whose exports fell by 41.52 percent over the previous fiscal year in 2022–23. Engineering exports increased by 4.91 percent over the previous fiscal year in 2022–23, excluding iron and steel panels.
The major panels showed that shipments of “Motor Vehicles/Cars,” “Products of Iron and Steel,” “Electric Machinery and Equipment,” “Industrial Machinery,” “Medical and Scientific Instruments,” “Ships, Boats, and Floating Structures,” and “Auto Components/Parts” increased over the previous fiscal year, while shipments of “Basic Metals” like Iron & Steel, “Aluminium and Products,” and “Copper and Products”
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