Engineering exports slump 16 per cent to $5.8 billion in December

Engineering exports, a major chunk of total out-bound shipments, slipped 16 per cent to $5.8 billion in December due to slowing global demand. The figure for December 2014 was $6.9 billion, according to Commerce Ministry data. The overall exports of India contracted 15 per cent in December 2015 to USD 22.2 billion. The exports have been going downhill since December last year due to a global demand slowdown and drop in prices of commodities. Traders are apprehensive that the recent devaluation of the Chinese currency would also impact engineering exports. Engineering Exports Promotion Council (EEPC) said that going by the current trend, the sector¡¯s exports for the current fiscal would come in much lower than the previous fiscal¡¯s USD 73 billion. ¡°A steep depreciation of the yuan will deal a further blow to Indian exports, which are battling a slowdown in most markets of the world, as shipments from the country will further lose competitiveness against Chinese goods,¡± EEPC added. Engineering tops the list of the export basket of the country followed by petroleum products and gems and jewellery. The EU accounts for 17 per cent of India¡¯s total engineering exports and the North America 15 per cent. Engineering exports include transport equipment, capital goods, other machinery and equipment and light engineering products like castings, forgings and fasteners.