Engineering exports fall sharply in November: EEPC India
Dec 17 2013 , New Delhi
However, the engineering exports showed an annual increase of 14.72 per cent in November 2013 over the corresponding month of 2012.
"What is causing more concern is that they have declined month on month vis-à-vis October this year raising doubts whether recovery which began in the second quarter of this fiscal can be sustained," EEPC India Chairman Anupam Shah said.
The engineering export basket which covers a huge variety of items ranging from motor cars, three-wheelers, bicycles, iron and steel, transport equipment and high-tech products like parts of nuclear reactors and spacecraft aggregated $4.78 billion in November 2013, as compared to $5.6 billion in October.
Incidentally, in October, these exports had shown a smart increase, but the momentum could not be maintained in November, as is seen in several other key areas like gems and jewellery and petroleum products, EEPC India said.
In November, growth of India's merchandise goods exports eased to a five-month low of 5.86 per cent to $24.6 billion.
"In fact, three top contributors to the Indian exports basket could not keep pace in November. The performance was not consistent with the previous months in regard to petroleum goods, gems and jewellery and engineering goods," Shah said.
Elaborating on the reasons behind the fall in engineering exports in November, EEPC India said: "The key market of the US has not been of late supportive. Shipments to the US have declined year-on-year in November 2013 to $475 million from $514 million in the same month last year.
"Likewise the trend has not been very encouraging in some of the important markets of Europe. For instance, despatches to UK dropped to $200 million in November 2013 from $287 million (in the same month) a year ago".
EEPC India further suggested administrative action to prevent delay at ports, removal of procedural bottlenecks, urgently releasing drawback refunds and implementation of the recommendations of the Second Task Force on Transaction Costs as early as possible.