Engg Exports Fall 6% in Last Two Months, EEPC Optimistic for Future

The slowdown in major advanced economies has been casting a shadow on global trade and primarily as a result of this engineering goods shipments registered de-growth in FY23.

In the current financial year also the trend has so far been downward. The latest data from the Ministry of Commerce and Industry shows engineering exports fell a little over 4% year-on-year to US$ 9.30 billion in May this year as compared to US$ 9.71 billion in the same month last year.

Cumulatively, engineering exports have dropped around 6% year-on-year to US$ 18.29 billion in the April-May period of the current financial year.

There are, however, some encouraging signs of recovery and the outlook for the second half of the year looks slightly better. Global inflation has softened on the back of easing commodity prices.

It has been a tough time for engineering goods manufacturers-exporters with demand from most key markets slowing down.

Barring markets in Latin America, the WANA region, parts of Europe, and Oceania, most other markets have seen muted demand. Engineering goods exporters have been trying to penetrate new markets and hoping demand from top destinations will improve in times to come.