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Engineering exports decline for fifth month in a row in November | Jobs Vox

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Engineering goods exports are set to decline for the fifth consecutive month by a marginal 0.30 per cent (y-o-y) to $8.07 billion in November 2022 due to the ongoing slowdown in China and the European Union and a drop in export duty on steel, according to the Engineering Export Promotion Council of India. of India (EEPC).

Engineering goods exports to China fell 40 per cent in November, partially offset by a 14 per cent increase in exports to the US, according to the latest analysis of engineering goods exports and imports by EEPC.

However, exporters are optimistic about a better performance in the coming months due to the government’s recent decision to withdraw 15 per cent export duty on steel, the analysis pointed out.

Total engineering exports for April-November 2022-23 declined 1.8 per cent to $70.71 billion over the same period last year. In the first seven months of the fiscal, engineering exports achieved 55.68 per cent of the government’s target of $127 billion for the entire fiscal.

base effect

EEPC said the moderation in export decline in November can be largely attributed to a favorable base effect as engineering exports in November 2021 witnessed a sudden decline as compared to its preceding months in 2021.

The 15 per cent export duty on steel continues to impact engineering exports. While iron and steel exports declined by 56 per cent in November 2022, the year-on-year decline during April-November 2022-23 was around 42 per cent.

However, the recent withdrawal of export duty on select steel items is likely to revive iron and steel exports in the coming months.

Weak demand in the European region, mainly due to higher energy prices and lower manufacturing activity resulting from the Ukraine-Russia conflict, and China’s struggle to deal with rising COVID cases and a growing real estate crisis, are other factors affecting exports. Were.



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