Engineering exports grow 52.7% by Oct 21
New Delhi, Nov 25 (UNI): The Engineering Export Promotion Council has sought government intervention in creating policies which encourage more value addition that will enhance India’s presence in global high-value exports, it was announced on Thursday.
India’s major export content is still in the range of low to medium value and needs to be incentivised for more efficiency and greater value addition to grab opportunities in the changed economic scenario in the post-pandemic world.
Constant upgradation of the value chain and exploration of new economies have pushed India’s engineering exports in October 2021 to record 52.69% growth over October 2020 with shipments of $9.4 billion as against $5.9 billion in October 2020. Exports in September 2021, however, were revised slightly downward. Engineering exports in October 2021 was also higher by 46.6% as compared to October 2019 when the economy was free of any pandemic effect.
“Collective efforts by the exporting community have ensured high growth in the sector despite several challenges during pandemic times. Share of engineering goods to the total exports has also been rising over the years,” says EEPC India Chairman Mahesh Desai.
In the last decade itself, according to Desai, engineering export’s share in India’s total merchandise exports has increased significantly from around 17% to 26%.
The sector also achieved $ 60.98 billion cumulative exports of engineering goods in April-October period of FY22, achieving 57% of the full year target. All the 33 engineering goods categories including aircraft parts and ship boats and floating products recorded positive year-on-year growth in exports during October 2021 as outward shipments continued its double-digit growth run.
EEPC analysis further shows exports rose to 23 out of 25 top export destinations during this period with exports to three top destinations.