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India-China trade: Engineering goods exports to China, Singapore & Malaysia fall sharply in June: EEPC

When export technical goods from India to most of the key countries recorded high double-digit growth in June reflecting the recovery in global trade, shipments to China, Singapore and Malaysia fell sharply during this period, a media release issued by EEPC India on Friday.

Exports to China, the world’s largest buyer of raw materials, by value fell 33% to $501.9 million in June 2021 from $747.1 million in the same month last year. On a cumulative basis, Export to China fell 15.4% in the April-June period of fiscal year 22 to $1357.9 million from $1604.9 million in the same period last fiscal.

According to analysis of trade data by EEPC India, the US remains the top importer of Indian engineering commodities, followed by UAE. Among the 25 main markets that account for about 78% of India’s total exports of technical goods, 21 countries recorded positive growth in June this year.

Most product categories have seen impressive growth. Among the 33 technical plates or product segments, 31 panels have seen positive growth in exports between June 2021 and June 2020. Exports decreased due to two plates, zinc and products fell 5.1% and aircraft and spacecraft parts fell slightly (0.6%).

“Technical goods sector is one of the top export activities. It recorded a growth of 50% year-on-year for the fourth consecutive month in June. During this period, commodity exports However, the industry is facing a number of challenges. Domestically, there are severe container shortages, high logistics costs and raw material prices. major as steel is increasing,” EEPC India President, Mr. Mahesh Desai said in the release.

On the external front, Mr. Desai said that with domestic demand dwindling in East Asian manufacturing giants including Japan, China and South Korea, export volumes from these countries are also increasing, could pose a threat to Indian exporters.

The President of EEPC India remains upbeat on the positive growth of exports in the current financial year but says that falling demand in China and the spread of a new and highly infectious Covid strain are among the main factors. possible threat to global trade.

But despite some potential difficulties, India’s trade outlook for the current year has so far been positive.

The President of EEPC India said that the engineering sector contributes almost 25% of the total exports of goods from India and therefore to reach the target of $ 400 billion, India’s technical exports need to increase to 100 percent. billion USD.

While appreciating the support given to the sector during difficult times, Mr. Desai called on the government to expedite the disclosure of benefits under the Tax and Tax Exemption for Export Products (RODTEP) program. ) and release pending funds under the MEIS scheme.

“This will ensure stable working capital flows, especially for MSMEs, and boost exports further,” he said.

Continuing with the momentum of growth, India’s technical exports have led to an overall recovery in foreign trade, which has been a key supporter of the economy and job creation. It posted annual growth of 50% or higher for the fourth consecutive month through June 2021 and surpassed US$8 billion for the third time in the past four months. Technical shipments in June 2021 at a monthly all-time high of US$8,836.32 million versus US$5,831.78 million in June 2020, recording a growth of 51.52% .

Technical goods exports in June 2021 were also 40.82% higher than in June 2019 when the economy did not experience any difficulties caused by the pandemic. Product groups such as iron and steel, industrial machinery, electrical machinery and automobiles (a combination of two- and three-wheelers and motor vehicles and automobiles) led the growth during this period.

Cumulative engineering exports for April-June 2021-22 stood at US$24,704.31 million, 81.58% higher than shipments of US$13,605.00 million for the period from April to June 2020-21. Compared to April-June 2019-20, cumulative engineering exports for the April-June 2021-22 period were nearly 25% higher.

The first quarter of 2021 saw significant growth globally despite regional disparities.

https://economictimes.indiatimes.com/news/economy/foreign-trade/engineering-goods-exports-to-china-singapore-malaysia-fall-sharply-in-june-eepc/articleshow/84668621.cms | India-China trade: Engineering goods exports to China, Singapore & Malaysia fall sharply in June: EEPC

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