NEW DELHI : The ongoing Russia-Ukraine war poses significant risks to economies and trade globally but sanctions imposed by several developed nations on Russia could bring opportunities for Indian engineering exporters to replace Russia in the global market, said EEPC India Chairman Mr Mahesh Desai.
Terming the year 2021-22 as a remarkable year for engineering exports, Mr Desai said that several challenges have emerged on both global as well as domestic front which could act as a deterrent in maintaining the current trend of exports.
“Russia-Ukraine conflict is the most sensitive issue at present to disturb the global economy while sudden rise in Covid cases in China is also a major concern on global supply chain. Inflation pressure in the US and real estate instability in China would have a dampening impact on trade growth. Back home, rising steel prices and some financial issues are also apprehended to act as bottleneck to exports in the months ahead,” he said.
Stating that engineering exports crossed US$ 11 billion in March 2022 for the first time in a month, Mr Desai said there was need to take measures to maintain this momentum.
The EEPC India analysis showed the country’s engineering exports recorded 19.7% YoY growth in March 2022 by climbing up to US$ 11.13 billion from US$ 9.29 billion in March 2021.
Exports during April-March 2021-22 stood at US$ 112.10 billion, registering 46.12% growth over the previous financial year. In FY22, the share of engineering in total merchandise exports was 26.7%.
As many as 32 out of 34 engineering product panels witnessed positive growth during 2021-22 compared to 2020-21.
Negative Y-o-Y growth during March 2022 was witnessed in “Copper and its products, “Nuclear reactors and boilers”, “Prime mica and its products”, “Ships, boats and floating structures” and “Tin and its products”. While negative growth in cumulative terms for the fiscal 2021-22 was witnessed in “Ships, boats and floating structures” and “Aircrafts, spacecraft and parts.”
India’s engineering exports surpassed the engineering export target of US$ 107.34 billion for FY 2021-22 set by the Government of India.
Among top 25 key markets of Indian engineering goods, exports to the US jumped 61% in March to reach U$ 2.02 billion as compared to US$ 1.26 billion in the same month last year. On a cumulative basis, engineering exports to the US stood at US$ 17.32 billion in FY22 as compared to US$ 11.33 billion in the previous financial year thus recording 52.8% growth.
Engineering exports to UAE surged 78.9% Y-o-Y in March, 2022 to US$ 553 million. In the financial year 2021-22, exports to UAE registered 74.3% growth to US$ 5.57 billion as compared to US$ 3.2 billion in FY 2020-21.
Engineering exports to China, however, declined in the month of March 2022 by 44.5% year-on-year to US$ 316 million