India's engineering goods exports grow 10.20% in December amid global challenges.
In the face of challenging geopolitical dynamics and stringent financial conditions prevailing in major advanced economies, India's engineering goods exports demonstrated resilience, achieving a commendable year-on-year growth of 10.20%, reaching US$ 10.04 billion in December 2023. This robust rebound, however, unfolds against a backdrop of lingering uncertainties fueled by ongoing global economic challenges, as highlighted by Mr. Arun Kumar Garodia, Chairman of the Engineering Export Promotion Council of India (EEPC). Acknowledging the adverse impact of tensions in Europe and West Asia, Garodia emphasized the significant downside risks these geopolitical factors pose to the engineering export sector.
Despite this notable performance, the sector braces for potential headwinds in 2024, with projections indicating a looming slowdown in global growth. Persistent factors such as elevated interest rates and restrained consumer spending are anticipated to continue affecting the sector throughout the year. Against this backdrop, EEPC maintains a stance of cautious optimism, expressing hope that geopolitical tensions will ease, paving the way for an amelioration in the global macroeconomic landscape. The council remains watchful of the evolving situation, adapting strategies to navigate the challenges and capitalize on opportunities in the dynamic international trade environment.
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