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Home Chandigarh

Engineering goods exports up 4.3 pc to $28 billion, Budget to give further boost

admin by admin
July 29, 2024
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Engineering goods exports went up 4.34 per cent to $27.93 billion in the April-June quarter (year-on-year), from $26.77 billion in the same period a year ago, a report said on Monday.

Among the top destinations of Indian engineering goods, shipments to countries such as the US, UAE, Saudi Arabia and the UK increased during the June quarter of the current fiscal, according to EEPC India.

Indian engineering exports in May bounced back and then recorded double-digit growth in June at 10.27 per cent (on-year).

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Engineering exports in June rose to $9.39 billion from $8.52 billion in June last year.

“The Free Trade Agreement (FTA) with the UAE has proved beneficial for the engineering export community and we feel that the ongoing FTA negotiations with GCC once concluded would further favour the community,” said Arun Kumar Garodia, Chairman, EEPC India.

The global goods trade in the first quarter of 2024 increased by 1 per cent (year-on-year) and is expected to rise further in the coming months.

“This would be favourable for India’s exporting community too,” Garodia added.

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Engineering exports to the UAE and Saudi Arabia rose 38.2 per cent and 42.4 per cent to $1.99 billion and $1.4 billion, respectively.

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Engineering exports to the US grew 8.2 per cent to $4.65 billion in the quarter, as compared to $4.3 billion in the corresponding period of FY2023-24.

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Engineering exports to the UK jumped 21 per cent year-on-year to $1.01 billion during this period, according to EEPC India.

Notably, engineering exports to China grew 10.4 per cent (on-year) to $619.2 million in the June quarter of the current financial year.

The Union Budget 2024-25 has announced some very favourable measures for the uplift of MSMEs in the country.

“Other moves such as setting up e-commerce export hubs in the PPP model or favourable customs duty policies would immensely help the exporting community. Investment-grade energy audits across 60 traditional industry clusters will enhance operational efficiency and reduce carbon emissions, aligning with the EU’s CBAM requirements,” said Garodia.

As many as 23 out of 34 engineering panels recorded positive growth in Q1.

The growth in engineering exports in June was attributed to a decent rise in shipments of electrical machinery, motor vehicles/cars, products of iron and steel, auto components and parts, and industrial machinery, among others.

According to EEPC India, excluding the export of iron and steel, engineering exports recorded a much higher growth both on a monthly as well as a cumulative basis. AGENCIES

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