India’s machinery exports to key markets fall in February

India’s machinery exports in 17 out of 25 key markets like the US and China fell in the month of February 2023, mainly due to the global economic slowdown and low demand for metals and metal products.

India’s machinery shipments to the US fell 9.1% year-on-year to US$1.35 billion in February from US$1.49 billion in the same period last year. Exports to the USA recorded positive annual growth of 10.8% in the first 11 months of the current financial year.

Exports to China, another key market, continued their downward trend, with shipments to the neighboring country falling 33.3% yoy to US$205.8 million in February 2023, compared to US$308.8 million in the same month month of the previous year.

On a cumulative basis, India’s machinery exports to China fell by 54% yoy to US$2.4 billion in April-February 2022-23.

India’s machinery exports to China in April-February 2021-22 amounted to US$5.21 billion.

While the top exporting countries that recorded positive growth in February 2023 compared to February 2022 were Singapore, UAE, Saudi Arabia, Mexico and Indonesia. The largest declines among the top destinations include the US, Germany and Italy.

From a regional perspective, only ASEAN and WANA (West Asia and North Africa) recorded positive year-on-year growth in February 2023. On a cumulative basis, North America saw year-on-year export growth, followed by Latin America and Oceania, while Northeast Asia saw the largest decline.

Indian machinery exports fell for the seventh month in fiscal year to date 2022-23. In February 2023, machinery exports fell by 9.68% to US$8.58 billion compared with US$9.50 billion in February 2022.

The cumulative machinery exports for April-February 2022-23 also suffered a decline of 4.24% over the same period last fiscal year, as they fell to 96.85 from $101.14 billion in April-February 2021-22 billion US dollars.

In rupee terms, machinery exports fell only 0.52% in February 2023 versus 9.68% in dollar terms. On a cumulative basis, machinery exports grew 3.10% yoy in rupee terms versus a 4.24% decline in dollar terms. This discrepancy was due to the annual depreciation of the rupee against the US dollar by 10.15% in February and by 7.9% in April-February 2022-23.

Commenting on the February trade data, Mr Arun Kumar Garodia, Chairman of EEPC India said: “Our analysis shows that the global decline in demand for metals and metal products is mainly responsible for the negative growth in Indian exports. However, rising commodity prices, especially iron and steel, have also made our metal exporters less competitive in the world market.”

Mr. Garodia noted that global trade forecasts do not appear very optimistic, although there are some positive aspects.

“A slow but gradual recovery is forecast. China, the world’s largest consumer, is also expected to recover from its housing and financial crises, albeit slowly. Against this background, India could also look forward to a slow recovery,” he said.

According to the rapid estimates of the Ministry of Commerce of the Government of India, the share of machinery exports in the total goods exports from India in February 2023 was 25.57%, while the share of the cumulative machinery exports in April-February 2022-23 was 23.86%. .

Out of 34 technical panels, 10 product panels recorded positive export growth in February 2023 compared to the same month last fiscal year. Major technical products such as iron and steel, iron and steel products, non-ferrous metals such as aluminum, nickel, lead, tin and other products, industrial boilers, internal combustion engines and parts, air conditioning and refrigerating machines, dairy machinery, electrical machinery and equipment, automobiles/ Cars, two- and three-wheelers, bicycle parts, car tires and hand tools recorded a decrease in exports in February 2023 compared to February 2022.

On a cumulative basis, 22 out of 34 technical bodies reported positive growth in the April-February 2022-23 period compared to the same period last fiscal year. The largest declines were in the segments of iron & steel, non-ferrous metals, two-three wheelers, rail transport, bicycle parts and project goods.

Related Articles

Back to top button