Engineering goods exports attained an all-time high of $9.14 billion in July 2021, accounting for one-fourth of the country’s entire merchandise exports, according to the engineering Export Promotion Council (EEPC) of India.
“The record leading engineering goods exports reflect the overall trend in the country’s merchandise exports as well as the global trend. While we are optimistic, potential risks and uncertainties must not be overlooked. The pandemic has had an impression on some of the developing world’s major economies “Mahesh Desai, its chairman, stated
According to an EEPC India analysis, the UAE is India’s second-largest export destination for the third time in a row, with July shipment nearly doubling to US$518 million, up from US$269.29 million in July 2020.
Exports to China, like the previous month, fell to third place and fell 13% to $532 million when compared to the same month last year.
Iron and steel exports to China fell sharply by 55.38 percent in July this year, while as many as 20 of 25 key nations estimating for 77 percent of India’s total engineering exports registered positive monthly growth in July 2021, compared to July 2020. This significantly high share reflects India’s reliance on traditional markets for engineering export.
Desai stated that the government’s assistance would be required in dark times and asked that the refund rates under the Remission of Duties and Taxes on Exported Products be reviewed ( RoDTEP).
According to the EEPC India chairperson, iron and steel—the primary inputs of engineering goods—have been excluded from the RoDTEP scheme, reducing the effectiveness of the gains.
“We have brought the issue to the attention of the government and hope that the anomalies in the RoDTEP will be corrected soon.” This, along with other policy support, would be crucial in supporting the sector to meet its US$107 billion export target for the current fiscal year. Desai stated.
Mexico, South Africa, and Nigeria were the leading three importers of Indian automobiles from April to July 2021, accounting for 12.5 percent, 11.36 percent, and 5.64 percent of India’s global exports, respectively, compared to the related period last fiscal.
Merchandise exports in July 2021 arrived at a new monthly high of US$35.43 billion, bettering the previous high of US$34.5 billion set in March 2021.