EEPC Sees Gloom in Russian Exports in Engineering Goods

Continuing the uptrend, engineering goods export recorded 31% year-on-year growth in February with total value estimated at US$ 9.2 billion. Demand from key markets helped the sector register robust growth, said EEPC India Chairman Mr Mahesh Desai.

"The trend so far has been quite impressive. Uncertainty has arisen in recent weeks on account of geo-political situations involving Russia and Ukraine but its impact on engineering goods exports is yet to be assessed," Mr Desai said. 

"Among the CIS countries, Russia is the biggest export market for Indian engineering goods. Exclusion of Russia from the SWIFT payment system would, therefore, mean delayed payment realisation for exporters," he said.

Mr Desai said that apart from payment issues, the ongoing Russia-Ukraine crisis has already pushed prices of key commodities especially crude and metals.

"The shipping cost which has already been going through the roof would further hurt the exporters," he said.

"In case the Russia-Ukraine crisis continues, there could be spillover effects elsewhere too and that means impact on trade deepening. We hope to continue our growth run should geopolitical tensions ease normalcy returns," he further said.