India's engineering goods exports surge by over 10% in December
India's engineering goods exports experienced a 10.20% year-on-year growth, reaching $10.04 billion in December 2023. This is despite a host of global challenges such as geopolitical tensions and financial constraints in major advanced economies. Engineering goods comprise of iron and steel related products, non-ferrous metals, industrial machinery, automobiles, automobile components, and other machinery products.
Looming concerns amid uncertain times
Arun Kumar Garodia, Chairman of the Engineering Export Promotion Council of India (EEPC) noted that the global growth outlook for 2024 appears to be slowing down, with factors like high interest rates and low consumer spending. However, EEPC remains cautiously optimistic, hoping that easing geopolitical tensions will lead to an improved global macroeconomic situation. Garodia mentioned the Red Sea conflict triggered by Hothis in Yemen as a major issue causing delays due to increased transit times and additional freight costs.
EEPC suggests entering into more free trade agreements
To help engineering exporters overcome uncertainties and maintain growth, EEPC suggests entering into more free trade agreements, especially with Latin American and African countries. This would grant deeper access to new and emerging markets. As the Union Budget approaches, the government could consider measures such as providing low-cost credit and market support to boost engineering exports, per the EEPC.
