• Wed. Feb 21st, 2024
Export of machinery to Russia and CIS countries increased 3 times in June

NEW DELHI: Exports of Indian engineering goods to Russia and the Commonwealth of Independent States (CIS) countries rose in June, tripling from a year earlier, exporters said. However, commodity exports to other parts of the world witnessed a slowdown, they added.

NEW DELHI: Exports of Indian engineering goods to Russia and the Commonwealth of Independent States (CIS) countries rose in June, tripling from a year earlier, exporters said. However, commodity exports to other parts of the world witnessed a slowdown, they added.

The 18-month Russia-Ukraine war has driven up food and fuel prices, resulting in lower demand for goods and services in the West. As a result, merchandise exports from India have declined for six consecutive months.

The 18-month Russia-Ukraine war has driven up food and fuel prices, resulting in lower demand for goods and services in the West. As a result, merchandise exports from India have declined for six consecutive months.

While engineering exports continued to decline in key markets such as the US, EU and China in June, exports to regions such as West Asia, North Africa (WANA), CIS countries and Northeast Asia saw positive growth.

While engineering exports continued to decline in key markets such as the US, EU and China in June, exports to regions such as West Asia, North Africa (WANA), CIS countries and Northeast Asia saw positive growth.

“Engineering exports to Russia nearly tripled to $116.9 million by June 2023. On a cumulative basis, it increased four-fold to $337.4 million in the April-June period of the current fiscal against $89.7 million in the same period in FY23,” the Engineering Export Promotion Council (EEPC) said.

“Engineering exports to Russia nearly tripled to $116.9 million by June 2023. On a cumulative basis, it increased four-fold to $337.4 million in the April-June period of the current fiscal against $89.7 million in the same period in FY23,” the Engineering Export Promotion Council (EEPC) said.

According to available data, engineering exports to the US fell 12.5% ​​year-on-year to $1.45 billion from $1.65 billion a year ago. On a cumulative basis, exports were valued at $4.30 billion during April-June 2023-24, down from $5.32 billion in the previous year.

According to available data, engineering exports to the US fell 12.5% ​​year-on-year to $1.45 billion from $1.65 billion a year ago. On a cumulative basis, exports were valued at $4.30 billion during April-June 2023-24, down from $5.32 billion in the previous year.

Engineering exports to the European Union fell 16.2% to $1.51 billion from June a year ago. Cumulatively, it fell by nearly 10% to $5.35 billion during the period under consideration.

Engineering exports to the European Union fell 16.2% to $1.51 billion from June a year ago. Cumulatively, it fell by nearly 10% to $5.35 billion during the period under consideration.

In June 2023, engineering exports to China fell 20% from a year ago to $184 million.

In June 2023, engineering exports to China fell 20% from a year ago to $184 million.

In comparison, engineering exports to WANA, CIS and Northeast Asia increased by 10.9%, 161.2% and 0.5% respectively in June from a year ago.

In comparison, engineering exports to WANA, CIS and Northeast Asia increased by 10.9%, 161.2% and 0.5% respectively in June from a year ago.

Overall, India’s engineering exports declined for the third consecutive month at $8.53 billion in FY24, about 11% lower than the previous year. Cumulatively, the decline was around 7.45%.

Overall, India’s engineering exports declined for the third consecutive month at $8.53 billion in FY24, about 11% lower than the previous year. Cumulatively, the decline was around 7.45%.

“The metals sector was the main contributor to the decline as global demand weakened. The latest news suggests that global demand for steel has further weakened due to sluggish demand from China’s manufacturing sector,” said Arun Kumar Garodia, Chairman, EEPC India.

“The metals sector was the main contributor to the decline as global demand weakened. The latest news suggests that global demand for steel has further weakened due to sluggish demand from China’s manufacturing sector,” said Arun Kumar Garodia, Chairman, EEPC India.

“Similar concerns, including the banking crisis in the US, have affected demand and prices for copper, aluminium, lead and zinc. This is reflected in India’s export performance, which indicates a sharp decline in exports to some of India’s major partners, including the US, EU and China. The situation is expected to worsen with the EU implementation of CBAM regulations. “Indebtedness has led to a decline in exports to India’s immediate neighbor South Asia,” Garodia added.

“Similar concerns, including the banking crisis in the US, have affected demand and prices for copper, aluminium, lead and zinc. This is reflected in India’s export performance, which indicates a sharp decline in exports to some of India’s major partners, including the US, EU and China. The situation is expected to worsen with the EU implementation of CBAM regulations. “Indebtedness has led to a decline in exports to India’s immediate neighbor South Asia,” Garodia added.

Excluding iron and steel exports, engineering exports fell 6.95% in June and 2.62% in Q1FY24. 17 of the 34 engineering sectors recorded positive growth in June, while the remaining sectors recorded a decline in exports. Major engineering products such as iron, steel, iron and steel products, non-ferrous items such as zinc and tin excluding copper, lead and nickel products, industrial machinery parts, auto components, two-wheeler parts and tyres, hand tools and railway transport saw a decline in exports from a year ago in June 2023.

Excluding iron and steel exports, engineering exports fell 6.95% in June and 2.62% in Q1FY24. 17 of the 34 engineering sectors recorded positive growth in June, while the remaining sectors recorded a decline in exports. Major engineering products such as iron, steel, iron and steel products, non-ferrous items such as zinc and tin excluding copper, lead and nickel products, industrial machinery parts, auto components, two-wheeler parts and tyres, hand tools and railway transport saw a decline in exports from a year ago in June 2023.

Garodia said India’s exports to new FTA partners UAE and Australia have increased. More comprehensive bilateral agreements with potential partners would be the right step towards achieving India’s target of $2 trillion in exports by 2030.

Garodia said India’s exports to new FTA partners UAE and Australia have increased. More comprehensive bilateral agreements with potential partners would be the right step towards achieving India’s target of $2 trillion in exports by 2030.

“There is an increasing trend of friendly relations or diversification of trade with a political ally. Many institutions and economies are considering a China Plus policy. This is an opportunity for India to diversify,” he said.

“There is an increasing trend of friendly relations or diversification of trade with a political ally. Many institutions and economies are considering a China Plus policy. This is an opportunity for India to diversify,” he said.

Engineering exports from India recorded a seventh consecutive month of year-on-year decline in June this year from December 2022. June 2023 saw the third consecutive month and the first double-digit decline in engineering exports in the ongoing financial years. In June 2023, the decline increased to 10.99% from 4.13% in May 2023.

Engineering exports from India recorded a seventh consecutive month of year-on-year decline in June this year from December 2022. June 2023 saw the third consecutive month and the first double-digit decline in engineering exports in the ongoing financial years. In June 2023, the decline increased to 10.99% from 4.13% in May 2023.

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