Global rollout of Covid-19 vaccines along with the Centre's initiatives is expected to boost exports in the coming months, EEPC India said. "Given the initiatives announced by the government and the speedy rollout of vaccines, we expect the growth to return in the coming months. There is also a gradual recovery in global trade which will have a positive impact on the export sector in India," said the Chairman of Engineering Export Promotion Council of India (EEPC), Mahesh Desai.
Last month, India's merchandise exports rose marginally to $27.93 billion from $27.74 billion recorded in February 2020. Accordingly, the share of engineering items in total merchandise exports was 23.49 percent during this period.
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"Lower exports during February 2021 could be partly attributed to the base effect as shipments had seen a sudden surge in the corresponding period last financial year. However, drop-in shipments is certainly a cause of concern for exporters," Desai said.
Besides, the EEPC India cited that China, Singapore, Germany, Thailand, and Italy were among the nine countries that saw high double-digit growth in demand for Indian engineering goods in February 2021. Exports to China, India's second-largest export destination, recorded positive growth in both monthly as well as cumulative terms.
India's merchandise exports rose marginally to $27.93 billion from $27.74 billion. Unsplash
"While shipments to China jumped 68 percent to $235.58 million in February, exports during April-February of FY21 saw a stellar year-on-year growth of 114 percent to $4276.49 million," the EEPC analysis report said. As per EEPC data, North America continued to be the biggest market for Indian engineering goods with an 18.3 percent share while the European Union (EU) and ASEAN ranked second and third in the pecking order, respectively.
"The EEPC analysis showed engineering exports to the EU recording positive monthly growth in February 2021 compared to February 2020 after a long hiatus," it said.
Among 33 product segments, 12 categories recorded negative growth in February, while the remaining 21 posted positive growth. "China, Vietnam, and Nepal were the three top importers of Indian iron and steel during April 2020-February 2021 with market shares of 23.19 percent, 8.80 percent, and 7.91 percent, respectively. The US, the UAE, and Germany were the top three importers of products made of iron and steel during April-February 2021," it said.
At present, the engineering goods sector is a key component of the broader manufacturing industry. It accounts for about 25 percent of India's total global exports in the goods sector and is one of the largest foreign exchange-earners. The sector employs nearly 4 million skilled and semi-skilled workers. (IANS/SP)