Engineering goods exporters, who have had a difficult year thanks to weak global demand, are still hopeful of ending 2023-24 in the black, with shipments to 13 major markets growing in January.
Exports of engineering goods, which have accounted for a quarter of India’s merchandise exports in recent years, rose for the second straight month in January, albeit at a slower pace of 4.2% compared to 9.8% in December. Cumulative exports so far this year now stand at $88.1 billion, just 0.2% below the $88.27 billion recorded between April 2022 and January 2023.
Last month, the value of shipments to about a dozen major markets clocked significant growth, including the U.S. (6%), China (15.1%), Russia (30.8%) and the UAE (3.8%). The major drivers for the growth were iron and steel products, copper products and electric machinery, with demand from South Asia and Europe also propping up volumes.
“The disruption in trade routes has hindered potential growth, but there remains optimism that by the end of the fiscal year, India will see positive growth in this sector,” Engineering Exports Promotion Council (EEPC) India chairman Arun Kumar Garodia said on Saturday.