KOLKATA: India has a huge stake in the trade tensions erupting between the US and China, as both these nations are among the top destinations for the Indian engineering exports, even as the apex exporters’ body EEPC India is hoping the situation does not escalate.
Indian engineering exports to the US, the number one destination for these goods, had gone up by over 47 per cent and to China by 76 per cent between April-February, 2017-18, according the data compiled and analysed by the EEPC India.
India’s engineering exports to the USA between April-February, 2017-18 have gone up to $9.21 billion from $6.25 billion a year ago with a precise growth of 47.3 per cent. Though , smaller in value terms, the engineering shipments to China witnessed an impressive expansion from $ 1.62 billion to $2.8 billion for the same period. But China remains the fourth largest export destination for the Indian engineering exports.
“Our stakes are quite high in the unfolding global trade tensions between the US and China. We would not like to be caught in the cross-fire,” said EEPC India chairman Mr Ravi Sehgal. He said rising import tariffs in the wake of US Presidential action on steel and aluminium as also the complaint filed against India by the US in the WTO with regard to various export promotion schemes will be challenging issues for the Indian exporting sector.
Even from the monthly perspective, the USA continued to be the top most exporting destination for India’s engineering products in February 2018. It registered positive growth both on monthly basis as well as in cumulative basis during Apr-February 2017-18 over the same period last fiscal to the extent of 32 percent and 47 percent respectively. Major items of exports to the US include products of iron and steel, industrial machinery, non-ferrous metals, automobiles.
China ($1.65 billion), Malaysia ($1.12 billion ) and South Korea ($1.10 billion ) were the top three importers of Indian non-ferrous metals during April – Feb 2017-18 with Y-o-Y growth of 154 percent, 64 percent and 33 percent respectively.
On a cumulative basis and from the overall perspective, engineering exports saw a growth of over 18 per cent at $ 68.28 billion during April-February 2017-18 as against $57.53 billion during the same period last fiscal.The share of engineering exports in India’s total merchandise exports was estimated at 24.24 percent in February 2018 while on a cumulative basis, the share was 24.95 per cent during April – February 2017-18.
Source: Economic Times