New Delhi: Engineering exports to as many as 19 out of India’s top 25 destinations have seen a sharp dip in January, with Malaysia alone recording a plunge of about 90 per cent. Out of 33 engineering products, 22 recorded contraction.
“The level of distress for India’s engineering exporters can be gauged from the fact that the drop in several key destinations has crossed 50 per cent (in January) while in the case of Malaysia, the fall has been above even 90 per cent, almost evaporating the market, for January 2016 over the same month last year,” said Engineering Export Promotion Council of India.
Engineering exports plummeted 28 per cent in January to $4.82 billion from $6.70 billion in the year-ago period. “It is getting quite bad. Look at Malaysia, one of the top 25 destinations for our exports. For January, 2016 the shipments there plummeted to mere $78.22 million from a sizeable $830.88 million a year ago. When close to a billion dollar disappears from a single market in just one of the sectors, the depth of the problems can be gauged,” said EEPC India, chairman T.S. Bhasin.
Likewise, the analysis shows that engineering exports to UAE, the second largest market destination after the US, dropped by more than half in January to $484.12 million from $ 991.17 million year-on-year. To the Middle-East and West Asia region, which has been witnessing its own serious problems because of a significant downturn in the crude oil prices, India’s engineering consignments dropped by 43.88 per cent, said EEPC.