Despite various challenges arising from geopolitical tension and tight financial conditions in major developed economies, India’s engineering goods exports recorded a year-on-year growth of 10.20 per cent,valued at USD 10.04 billion in December 2023.
Although this represents a positive note but the sector still faces uncertainties because of ongoing global economic conditions ,as per the official statement from Engineering Export Promotion Council of India (EEPC) ,which facilitates sourcing from India and encourages MSMEs to raise their standard at par with international best practices.
While overall demand remains good, the Red Sea tension is a major problem, creating delays due to increased transit times and additional freight costs, Engineering Export Promotion Council of India Chairman Arun Kumar Garodia said.
While keeping this these factors in mind, EEPC maintains a cautious optimism and hopes that geo-political tension will ease, leading to an improved global macroeconomic situation, he said.
Entering into free trade agreements, specially with countries like Latin America and Africa, would give exporters more access to new and emerging markets, he said.
“It has been a challenging period for engineering exporters. Tensions in Europe and now in West Asia have posed significant downside risks”,he said.
“Projections indicate a potential slowdown in global growth in 2024, and factors such as high interest rates and low consumer spending are expected to continue affecting the sector this year,” he added.
The Government could take measures such as providing low-cost credit and market support to boost engineering exports in the upcoming union budget,EEPC said in a statement.
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