US accounted for an annual growth of 91 percent in shipments in September this fiscal
NEW DELHI: Indian engineering exports are benefiting from an impressive turnaround in demand in most of the developed economies, including the US and Europe, said an industry association.
According to an analysis by engineering exporters' apex body EEPC India, the US accounted for an annual growth of 91 per cent in shipments in September this fiscal, along with several other key markets of Europe, the UAE and China.
The US continued to be the top destination for India's engineering products, registering a huge expansion both on monthly as well as in cumulative basis during April-September 2017-18 over the same period last fiscal, it said.
While the shipments of engineering exports to the US went up by a whopping 91 per cent to USD 1.53 billion in September, from USD 551 million in the same month last fiscal, the April-September despatches had gone up over by 47 per cent to USD 4.79 billion from USD 3.25 billion in the first half of the previous fiscal.
"Since the demand pick up, particularly in iron and steel, all ferrous and non-ferrous metals, is evident in the global market, we expect the exports to remain buoyant, barring any major adverse event," said EEPC India Chairman TS Bhasin.
According to the apex body, all European nations falling under the top 25 engineering export destinations like Germany, Italy, Belgium, the Netherlands, France and Poland recorded considerable growth.
The engineering exports to Germany saw a major jump of over 67 per cent to USD 288 million from over USD 172 million in September last fiscal. Likewise, the shipments to Italy rose by 30 per cent to USD 209 million from USD 161 million.
Overall, India's engineering exports to its top 25 destinations registered a rise of 53.3 percent in September 2017 and 25.6 per cent during April- September 2017 compared to the same period previous year.
"So, we are seeing a secular trend in the global demand pick-up. Once we are able to resolve our domestic issues arising out of the initial problems of the Goods and Services Tax, we should be able to build up further," Bhasin added.