Indian engineering exports to UK grows despite Brexit fears
The Dollar Business Bureau
The Brexit phenomenon did not impact India's engineering exports to the UK and the other two big European markets of France and France, as shipments of manufacturing and high-tech products to the UK grew by over 12% in July.
Engineering exports to the UK stood at $215 million last month from $192 million in the corresponding month of last year. Exports to Germany feared even better, as it grew by 19% to about $200 million from $168 million in July last year. The shipments to another key market, France, too, increased 2.29% to $86 million from about $84 million for the month.
"Somehow, the reality has sunk in. Besides, a quick decision on the change of the Prime Minister in UK too helped calm the nerves. New Prime Minister Teresa May is well respected, giving a re-assurance to the business community," EEPC Chairman T S Bhasin said.
"From the engineering exports point of view, it is important to see that our shipments went up to UK despite about 11 per cent trade-weighted drop in prices of Pound Sterling, making Britain's imports expensive," Bhasin said.
Indian engineering exports dipped by over 12% in July, after registering a 2.57% growth in June this year. However, the positive growth trend to the UK and the other European countries has come amidst an overall negative growth in the country’s engineering exports.
Cumulative engineering exports during first four months of 2016-17 fell 5.82% to $20.27 billion from $21.53 billion during the same period of 2015-16.
“The engineering exports to UK are in line with the trend of the Britain’s economy, defying concerns which centered on the outcome of the June 23 referendum in that country. In one of the most keenly watched events around the world, the Yes vote in favour of Exit won, though by a thin margin. While the exit would be negotiated and is a time consuming process, the initial reactions were of that of fears and concerns,” EEPC said in a statement.