Annualising the figure means we are well on track to achieve our target of $105 billion in FY22
Chennai: Engineering goods have achieved almost half of the export target for the year in the first six months of the fiscal. The industry is hopeful of achieving the $105-billion target for FY22.
"India’s engineering exports have cumulatively increased from $32.4 billion in April-September 2020-21 to $52.3 billion in April-September 2021-22, registering a growth rate 61.4 per cent. Annualising the figure means we are well on track to achieve our target of $105 billion in FY22. In the first six months, almost 49 per cent of the target has been achieved, so we are almost half-way mark," said Mahesh Desai, chairman, Engineering Export Promotion Council of India.
India recorded $73.1 billion exports of engineering goods during 2020-2021. If the industry achieves the target, it would have grown exports by around 44 per cent in FY22.
"However, we need to observe the trend in the festival months (October and November) as holidays may lead to some slowdown in certain parts of the country and in December in Western countries," he added.
The share of engineering goods in total merchandise export was 26.65 per cent in September 2021.
Engineering goods shipments crossed $9 billion for the third month in a row in September, with 22 out of 25 top export destinations such as China, the UK and the UAE recording positive growth.
Out of 33 engineering product categories, 27 witnessed positive growth in exports during September 2021 compared with the same month last year. Maximum year-on-year decline was witnessed in zinc, aircraft, spacecraft and parts, ships and floating structure and electrical machinery during this period.
During September, the US remained top destination for engineering goods exports with the total value of the shipment at $1.29 billion, up 12.2 per cent compared to $1.15 billion in the same month last year. China was the second biggest market with total shipments growing 49 per cent year-on-year to $568 million.