In the fiscal year 2022-23, the United States was still India’s largest market for exported engineering goods, with the value of such exports increasing by 6.8 percent from the previous year, to a total of USD 18.67 billion. The United Kingdom, Germany, Singapore, Saudi Arabia, Mexico, and Indonesia are some of the other major areas that saw expansion.
Everything related to India’s Export of Engineered Goods!
The monthly decline in China’s exports of engineering items persisted. Shipments of engineering goods to China dropped by 52.4% from the previous fiscal year, from USD 5.53 billion to USD 2.63 billion. The United Arab Emirates, Turkey, and Thailand were the other major markets that experienced declines in growth in 2017.
India’s engineering exports hit a record high of USD 112.16 billion in fiscal 2021-22, but they fell to USD 107.04 billion by the end of fiscal 2022-23, a decrease of 4.57%. But, when measured against the rupee, engineering exports grew by 2.77 percent last year. The significant annual depreciation of the rupee versus the US Dollar in 2022-23 is mostly to blame for this discrepancy.
Fewer shipments of engineering items from India can be attributed to a number of issues, including the geopolitical crisis in the CIS region spurred by the Russia-Ukraine war, the economic downturn in North-East Asia, especially China, the crisis in South-East Asia, and the recession in Europe. The percentage of engineering exports to India’s total merchandise exports in fiscal 2022-23 was 23.92 percent, according to the Quick Estimates of the Commerce Ministry of the Central government, down from the higher 26.58 percent in fiscal 2021-22.
A breakdown per engineering panel revealed that during fiscal years 2022-23, 22 of the 34 panels saw an increase in exports, while 12 reported a decrease. In 2022-23 compared to the previous fiscal year, exports of engineering goods fell by 41.52%, primarily due to a drop in iron and steel exports. Exports of engineering goods increased by 4.91 percent in 2022-23 over the previous fiscal year, excluding the iron and steel panel.
Shipments of major panels such as “Motor Vehicles/Cars,” “Products of Iron and Steel,” “Electric Machinery and Equipment,” “Medical and Scientific Instruments,” “Ships, Boats, and Floating Structures,” and “Auto Components/Parts” increased over the previous fiscal year, while shipments of basic metals such as “Iron & Steel,” “Aluminium and products,” and “Copper and Products” decreased.
For the eighth month of fiscal 2022-23 and the fifth month in a row, Indian engineering exports fell in March 2023. March 2023 saw a drop in engineering exports of 7.49%, to USD 10.19 billion, from March 2022’s USD 11.01 billion.
In March of 2023, exports for 16 of the 34 engineering panels tracked positively year over year, while 18 panels tracked negatively. In March 2023, compared to March 2022, fewer major engineering products were shipped around the world. This includes iron and steel, iron and steel products, aluminum and steel products, industrial machinery, electrical machinery and equipment, two and three-wheelers, bicycle parts, auto tires, and hand tools. Excluding iron and steel, exports of engineering goods fell by 3.26 percent year-over-year in March 2023.
Economists of the World Trade Organization released a fresh prediction in April 2023 predicting that merchandise trade will increase by 1.7% that year, down from 2.7% the previous year. The situation in Ukraine, increased inflation, stricter monetary policy, and the unpredictability of the financial markets will all play a role in poor performance.
