Amid slackening demand for engineering goods from major markets such as the US and China , shipments to Russia continued their uptrend and more than doubled to US$ 123.65 million in July 2023 from US$ 55.65 million in July 2022, a rise of 122.03 per cent, according to a media release issued by EEPC India on Wednesday.At a total shipment value of US$ 123.65 million, exports to Russia in July were higher than Australia which imported engineering goods worth US$ 115.14 million from India, a 5.7% on-year decline.During the same period, engineering exports to the US declined 10.4% year-on-year to US$ 1.44 billion. Engineering exports to China also declined 10% year-on-year in July 2023 to US$ 197.98 million.Notably, engineering exports to Germany remained positive and grew 2% year-on-year to US$ 346.36 million in July this year even as the key European economy remained in the grip of a slowdown.Among 25 key markets for Indian engineering goods which contribute more than 76% to total exports, 14 countries witnessed a year-on-year decline in July 2023 while the remaining 11 countries recorded positive growth.Region-wise, positive year-on-year growth in July 2023 was noted majorly in West Asia and North Africa (WANA), North East Asia, and CIS countries. Regions witnessing a drop in exports during July 2023 include North America, ASEAN countries, EU countries, Sub-Saharan Africa, South Asia, Latin America, and Oceania.Overall, India's engineering exports dropped by 6.62% to US$ 8.75 billion in July 2023 from US$ 9.37 billion in July 2022.The decline was mainly due to a drop in exports of Iron & Steel and Aluminium coupled with falling global demand due to recession-like situations in major developed regions. "Eight consecutive months of year-on-year decline in engineering exports since December 2022 necessarily implies a depressing scenario of global trade, especially of engineering. Our analysis shows that the decline is mostly due to the metal sector and iron & Steel and aluminium in particular, the two major components of engineering exports from India," said EEPC India chairman Arun Kumar Garodia.Mr Garodia noted that in such a situation it is important for India to diversify its markets.

Source: The North Africa Journal August 23, 2023 15:12 UTC