India’s engineering exports to China up 58% in Aug
India’s engineering exports to China have gone up by an annualised 58 per cent in August 2019, bucking the trend of drop in overall exports to the world market, says data by EEPC India, an apex body of engineering exporters under Ministry of Commerce.
The data should come as a welcome boost on the eve of second informal meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping on Friday and Saturday at Mamallapuram (the first was in Wuhan last year).
Led by items like iron and steel and their products, India’s exports of engineering goods to China went up to $176.94 million in August 2019 from $112.20 million in the corresponding month last year with an increase of 57.70 per cent. The rise in shipments to China was contrary to overall decline of 8.92 per cent in India’s total engineering exports to global market at $6.35 billion during August 2019 ($6.97 billion), says a release from EEPC.
“Though the base of engineering exports to China remains low, as compared to other major economies such as the US, the rise in shipments to China is significant and needs to be built on. With the policy support at the highest level and easing of trade issues, this trade volume can be accelerated. Given the slowdown in global trade, such increasing trends are of significance,” said EEPC India Chairman Ravi Sehgal.
Iron and steel exports to China during August 2019 went up to $54.61 million ($22.73 million) reflecting over 140 per cent increase. Other major exports to China included industrial machinery and non-ferrous metals.
“While steel and iron along with products form bulk of the engineering exports to China, we need to move up the value chain and find ground in sectors such as automobile and auto parts. With increased engagement at the highest level, the policy and non-trade issues are expected to become easy,” Sehgal said in the release.