A sharp drop in exports of metals like iron and steel due to tepid global demand, and more competitive pricing from Chinese steel producers, dragged India’s engineering exports down 3.2% in April to break a four-month growth streak. However, exporters are hopeful of an uptick in the coming months.
Outbound shipments of engineering goods, which have accounted for about a quarter of India’s goods exports in recent years, had grown a marginal 2.1% to $109.3 billion in 2023-24, even as overall exports shrank a tad over 3% to $437.1 billion in what was a difficult year for global trade.
In April, engineering products shipped out fell from about $9 billion a year earlier to $8.67 billion, primarily due to lower shipments of metals, especially iron and steel and copper. Excluding iron and steel, whose exports slid 36.4%, engineering exports recorded 2.6% growth last month, the Engineering Exports Promotion Council (EEPC) said on Thursday.
The decline in steel exports can be attributed to low international demand in major markets and an increasing trend of nearshoring amongst developed markets. “There is also a significant decline in Chinese steel demand which is encouraging Chinese exports at a much more competitive price compared to India,” said Arun Kumar Garodia, Chairman, EEPC India, who pinned the sector’s prospects on the hopes that global trade will pick up this year.
