Engineering exports from India to Russia more than double

24 Aug, 2023 09:36 / Updated 1 year ago
The surge in July shipments has come amid declining demand from China and the US

Indian exports of engineering goods to Russia saw a massive year-on-year increase last month, according to data released by the Engineering Export Promotion Council (EEPC India) on Wednesday.

Shipments totaled $123.65 million in July 2023 compared $55.65 million recorded in the same period a year ago, marking a jump of over 122%, the council reported.

During the same period, Indian engineering exports to the US declined 10.4% to $1.44 billion, while sales to China declined 10% to $197.98 million.

Overall, engineering exports from the South Asian nation declined by 6.62% to $8.75 billion in July compared to $9.37 billion recorded in the same month in 2022. The drop is reportedly attributed to declining exports of iron, steel, and aluminum along with falling global demand due to recession-like conditions across major developed regions.

Year-on-year growth was recorded only in West Asia and North Africa, North East Asia, and CIS countries, while North America, ASEAN countries, EU countries, Sub-Saharan Africa, South Asia, Latin America, and Oceania witnessed a drop in exports last month.

"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," said EEPC India chairman Arun Kumar Garodia.

"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," he added.

According to Garodia, current conditions are providing India with a major opportunity to diversify its markets, especially to the "non-traditional markets of Africa and Latin America."

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