Home / Economy / Engineering exports contract 17% in September

BENGALURU: India’s engineering exports, which account for a quarter of the country's total overseas shipments, fell 17% on year in September due to a slowdown in Europe and China. Engineering exports last month stood at $7.81 billion compared with $9.41 billion a year ago. Engineering exports had also declined in August, falling 12.64%.

India’s merchandise exports slipped 3.52% year-on-year to $ 32.62 billion in September.

“The impact of slowdown in Europe and China on the Indian engineering sector has been visible in the last few months with exports growth slackening...The uncertainty continues, primarily emanating from the energy crisis in Europe as a result of disruption in gas supplies from Russia and historically-high inflation in many advanced major economies," said Mahesh Desai, chairman, Engineering Export Promotion Council (EEPC). 

He said the coming quarters look challenging in the light of geopolitical issues and its impact on Europe and other countries. “There seems to be significant downside risks to engineering exports going forward."

According to the industry, the 15% export duty on steel has been weighing on engineering exports as India’s iron and steel exports fell 62.2% year-on-year in August. Engineering shipments to China had declined 70% in August to $173.7 million, from $619.5 million a year ago, amid Beijing's zero Covid-19 strategy.

As per an EEPC India analysis, engineering exports to the European Union fell 27.3% year on year to $1.47 billion in August.

ABOUT THE AUTHOR

Dilasha Seth

" Dilasha Seth is a journalist reporting on macroeconomic policy for the last 11 years. She writes extensively on issues including international trade, macroeconomic data, fiscal policy, and taxation. At Mint, she reports on trade deals that India is signing besides key policy decisions of the Ministry of Finance. She closely tracked and covered the transition to the goods and services tax (GST) regime in 2017 and also writes on direct tax-related issues. In the past, she has worked with Business Standard and The Economic Times. She is based in Bangalore."
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