India's engineering goods exports to China more than double in November
In November, India's engineering goods exports to China more than doubled to US$ 434.6 million, up from US$ 205.3 million the previous month.
The United States, on the other hand, remained the largest importer of Indian engineering goods during this period, with US$ 1.2 billion, up 36.6% from US$ 875 million in November 2020.
With a total shipping value of US$ 404.4 million in the previous month, the UAE was India's third largest market for engineering goods.
Though India's engineering exports increased in November 2021, the value of the shipments decreased.
Engineering exports fell to US$ 7.7 billion in November 2021, down from US$ 9.03 billion in October 2021, according to an EEPC India review of monthly statistics. However, the increase was still significant, at 37.12% above November 2020 exports of US$ 5.62 billion.
Engineering exports in November 2021 were 25.74% greater than exports in November 2019, when the economy was not affected by the pandemic.
After four months of consistently exceeding US$ 9 billion, engineering exports fell to roughly US$ 7.7 billion in November.
"The slowdown appears to reflect the difficulty that exporters are experiencing as a result of global demand volatility and the uncertainty surrounding the pandemic that has been generated by the new variant Omicron. Experts from all over the world have forecasted that while global trade development is impressive, it is not evenly distributed across countries", Chairman of the EEPC India, Mahesh Desai, stated.
Recent reports from the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), and the United Nations Conference on Trade and Development (UNCTAD) have highlighted factors of uncertainty such as China's "below expectation" growth, large and unpredictable swings in major markets, and other factors that could stymie global trade growth momentum in the coming days.
"Exporters in this situation require entire support from within the country in order to remain competitive even amid the impending uncertainties. As a result, we ask the government to investigate the issues of rising inflation, rising raw material prices such as steel, and logistics issues such as container scarcity as soon as possible", Desai explained.
Meanwhile, engineering accounted for 26.89% of total item exports in November 2021, compared to 26.37% in October 2021, 26.65% in September 2021, and 27.68% in August 2021.
During April through November 2021-22, the share was 27.31% on a cumulative basis.
In terms of various segments of the sector, 28 out of 33 engineering panels saw positive year-over-year increase in exports in November 2021, while 31 out of 33 panels saw growth from April to November 2021-22.
Exports rose to 21 of the top 25 export destinations, representing all regions.
During April-November 2021, the top three importers of Indian iron and steel were Italy, China, and Belgium, while the top three importers of India's 'iron and steel goods' were the United States, Germany, and the United Kingdom.
During the months of April to November 2021, the United States was India's leading importer of 'industrial machinery', followed by Thailand and China.
South Africa, Mexico, and Nepal were the top three buyers of Indian autos in India's global exports from April to November 2021, compared to the same time last year.
During April-November 2021, the top three importers of India's non-ferrous metals and goods were China, South Korea, and the United States, while the top three importers of Indian electrical machinery and components were the United States, Germany, and Poland.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.