India registers 13.5% growth in engineering exports to $9.79 billion in May 2022

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India recorded engineering exports of $9.79 billion in May 2022, registering a growth of 13.5 per cent compared to $8.62 billion recorded in the same month a year ago. While the cumulative engineering exports for April-May 2022-23 were recorded at $19.39 billion, which is 16.84 per cent higher than the exports of $16.60 billion recorded in the corresponding period of the previous year.

India saw its engineering exports to the United States grow 63.2 per cent to $1.81 billion in May, from $1.11 billion a year ago.

Germany, Singapore, the UK, Italy and Thailand were among the countries that registered positive growth in imports of engineering goods from India during May. The top 25 countries contributed about 75 per cent of the total engineering exports from India.

According to data released by the Engineering Exports Promotion Council (EEPC) of India, North America and the European Union were the regions that registered the maximum growth in exports from India, both monthly and cumulatively.

Engineering exports accounted for 25.14 per cent of India’s total merchandise exports in April-May 2022, up from 24.64 per cent in the same period a year ago.

Though India saw an increase in its engineering exports so far in the current fiscal, concerns remain. One of the biggest concerns is the Russia-Ukraine crisis which has severely hampered shipments to CIS countries, said Mahesh Desai, chairman of EEPC India.

The signing of new free trade agreements with UAE and Australia and ongoing talks with a number of developed nations may help exports from India to rise, said Mahesh Desai.

According to EEPC India data, 28 out of 34 engineering panels showed positive year-on-year growth in exports during April-May 2022, over the same period a year ago.

In May 2022, exports of iron and steel and its products grew by 16 per cent to $2.63 billion from $2.26 billion a year earlier. Exports of non-ferrous metals and products grew 21 per cent year-on-year to $1.31 billion, while exports of industrial machinery grew 33 per cent to $1.58 billion in May 2022.

India has set a target of engineering exports of $127 billion for the current fiscal year 2022-23, and the industry has achieved 15.3 per cent of the target in the first two months of the financial year 2022-23, said EEPC India.