Led by industrial machinery, products of iron and steel, 30 out of total 33 engineering goods categories recorded impressive growth in exports during May, 2021 with demand from traditional markets remaining robust.
“We have seen impressive growth in exports for the last three months in a row and the order books for the coming months remain strong. While demand has remained subdued in the domestic market, the engineering export sector has made a strong rebound. In order to keep the momentum, India needs to vaccinate most citizens at the earliest,” said EEPC India Chairman Mahesh Desai. “Given the prediction of repeated waves of pandemic, industry needs continuous support both from the Central government as well as states,” he added.
Engineering goods have been among the top performers in the export sector and have substantially contributed to the recovery. The share of engineering goods in total merchandise exports rose to 25.44% in May from 24.83% in April and 25.36% in March 2021. On a cumulative basis, its share stood at 25.23% during April-May of the current fiscal.
Engineering goods exports witnessed year-on-year growth for the third straight month to May 2021 and crossed US$ 8 billion for the second month after March 2021. As before, the US topped as India’s export destination for engineering goods. Shipments to the US jumped 56% to US$ 1,022 million in May, 2021 compared to US$ 655.37 million in the corresponding month last year. On a cumulative basis also, the growth rate was 144%.