South Asia becomes the top destination for Indian engineering exports
Government of India’s ‘Neighbourhood First’ policy got yet another boost as South Asia became the top destination for engineering exports from India in April 2015, according to a report by the Engineering Export Promotion Council of India (EEPC India). While India’s overall engineering exports clocked a miniscule growth of 0.2% (year-on-year) in April 2015, the shipments to South Asia witnessed a massive jump of 90.12% during the same period, followed by North America (25.62%), European Union (-0.8% year-on-year). The value of India’s engineering exports to the South Asia region increased from just $469.5 million in April 2014 to an impressive $892.7 million in April 2015. EEPC India, in its Engineering Exports Monitor for April 2015, noted that there exists a strong correlation between manufacturing growth and engineering exports and attributed the jump in engineering exports from India to an uptick in the manufacturing sector. "On a cumulative basis, manufacturing growth was recorded at 2.3% during fiscal 2014-15 as against a decline of 0.8% in the previous fiscal. Cumulative export growth, on the other hand recorded at 14.7% during fiscal 2014-15 over the previous fiscal," the report stated. Out of 33 engineering panels, 19 panels recorded a positive growth during April 2015. Engineering panels like zinc and products, aircraft and spacecraft parts, and office equipment recorded the maximum export growth in April 2015. Value-wise, Sri Lanka stood as the top destination for Indian engineering exports, recording a growth of 215.46% year-on-year, followed by United States (28.39%), UAE (-2.72%), China (37.67%). Interestingly, out of the top 25 countries, 13 countries recorded negative growth in the month of April 2015. "The global economy is expected to revive in the second half of 2015 and developed regions like US and the Europe are expected to see higher growth. These two regions constitute around 30% of India’s export and steady economic recovery is likely to push up the demand from those regions," concluded the report.
June 09, 2015 | 8:36 pm IST.