Engineering exports to Russia rise 140% to $1 billion

NEW DELHI : Due to the payment system in Rupees, the export of engineering goods from India to Russia is increasing. According to available data, in the April-November period of the current year, India’s engineering goods exports to Russia increased by 138 per cent to $902.25 million, compared to $378.89 million in the same period last year. Indian Engineering Export Promotion Council (EEPC).

Engineering goods exports in India are growing much faster than total exports, growing by 50 per cent to $2.35 billion in April-October 2023 compared to $2.35 billion in the same period last year, according to commerce ministry data. Was 1.57 billion dollars.

“Month on month we are seeing 100-150 per cent growth in exports as compared to the same month last year,” said EEPC Chairman Arun Kumar Garodiya.

EEPC is seeking RBI’s help in “streamlining” rupee payment processes, Garodiya said, adding that once things are streamlined “the sky is the limit”.

Asked what exactly he wanted, Garodiya said more banks should start processing export documents.

payment of Rs.

Due to India buying oil from Russia, India’s imports from Russia increased by 62 percent to $ 35.92 billion in April-October, from $ 22.13 billion in the same period last year.

Although it is not clear how much of India’s exports are denominated in rupees, the fact is that the rupee’s payment system has been helped.

“It is raining orders,” says V Krishnaram, CEO and joint managing director of Emerald Resilient Tyres, a Rs 200-crore Chennai-based MSME company that exports industrial tires to 60 countries, including Russia. Emerald, whose tires go on the wheels of airport vehicles, forklift vehicles etc., has a 38 percent share of the Russian market, up from 23 percent two years ago. Krishnaram credits the expansion of his company’s exports to Russia to the Russian SBER Bank, which has opened a branch in India.

FTA with UAE, Australia

In 2022-23, India’s engineering goods exports were pegged at $107 billion, down from the record $112 billion registered in 2021-22.

Garodiya said that exports in the current year will surpass last year’s $107 billion. As of November, exports of engineering goods stood at $70 billion, down about 2 percent from the same period last year, but Garodia was confident of making up for the rest of the year. He said that the free trade agreements that India has signed with the United Arab Emirates and Australia have been helpful. Engineering exports to the UAE rose 8.7 per cent to $3.43 billion in April-November from $3.15 billion in the same period last year. Exports to Australia increased 3 percent to $944 million.

Noting that engineering goods exports do well with countries with which India has FTAs, Garodia said he is looking forward to FTAs ​​with the UK and EU (Canada is on the backburner). These FTAs ​​will provide a “huge boost”, he said.