India Engineering Goods Exports in July Hit All-Time High of $9.14 Billion: EEPC

Engineering goods exports from India hit an all-time high of US$ 9.14 billion in July, accounting for one-fourth of the country’s overall merchandise exports, thanks to robust demand from the United States, Europe, and the United Arab Emirates (UAE).

According to the Engineering Export Promotion Council (EEPC), monthly engineering goods exports broke the previous high of US$ 8.8 billion in June 2021.

The United States remained India’s largest importer of engineering goods, with total exports rising 27.23% to US$ 1,272 million in the month under review, compared to the same month a year ago.

According to an EEPC India report, the UAE was India’s second largest export destination for the third time in a row in July, with shipments nearly doubling to US$ 518 million from US$ 269.29 million in July 2020.

Like the previous month, exports to China slid to the third position and declined 13% to US$ 532 million from the same month last year. In July of this year, iron and steel exports to China dropped by 55.38%.

Merchandise exports reached a new monthly high of US$ 35.43 billion in July 2021, beating the previous high of US$ 34.5 billion established in March 2021.

Twenty out of the top 25 major countries, which account for 77% of India’s total engineering exports, saw positive monthly increase in July 2021 over July 2020.

According to EEPC India, this relatively high percentage reflects India’s engineering export dependence on conventional markets.

“Engineering products exports are at an all-time high, reflecting the overall trend in the country’s merchandise exports as well as the global trend. While we are optimistic, there are risks and uncertainties to consider. The epidemic has had an impact on some of emerging Asia’s main economies.” Chairman of EEPC India, Mr. Mahesh Desai, was quoted in the statement as stating.

In July, 28 of the 33 engineering product groups saw growth, while five saw losses. Zinc and associated items fell by 2.8% year over year. Electrical apparatus and equipment fell by 8%, while ships, boats, and floating bodies fell by 20.8%. The drop in aeroplanes and spacecraft was 18.4% on a monthly basis.

In July 2021, iron and steel exports increased by 87% over the same period the previous year. Furthermore, in July 2021, shipments of iron and steel goods increased by 31.8%, resulting in a 70.8% increase in the category.

The automobile industry (which includes two- and three-wheelers, motor vehicles, and cars) had a significant increase in exports of 68.2%, owing to a 99.7% increase in two- and three-wheelers and a 58.2% increase in motor vehicles.

From US$ 1,295.5 million in April-July 2020-21 to US$ 3,110.3 million in April-July 2021-22, the vehicle sector rose by more than 140%.

During April-July 2021, Mexico, South Africa, and Nigeria were the top three buyers of Indian autos, accounting for 12.15%, 11.36%, and 5.64% of India’s global exports, respectively, compared to the same period last year.