Engineering exports to key markets decline in February : EEPC India

NEW DELHI : India’s engineering exports to 17 out of 25 key markets such as the US and China declined in the month of February 2023 primarily driven by the global economic slowdownandlowdemandformetalsandmetalproducts.

India’s engineering shipments to the US dipped 9.1% year-onyear in February to US$ 1.35 billion from US$ 1.49 billion in the corresponding period last year. Exports to the US registered positive year-on-year growth of 10.8% in the first 11 months of thecurrentfiscal.

Exports to China, another key market, continued a downward trend with shipments to the neighbouring country slumping 33.3% year-on-year to US$ 205.8 million in February 2023 as comparedtoUS$308.8millioninthesamemonthlastyear.

On a cumulative basis, India’s engineering exports to China sank 54% year-on-year to US$ 2.4 billion in the April-February periodof2022-23.

India’s engineering exports to China stood at US$ 5.21 billion intheApril-Februaryperiodof2021-22.

Whilethetopexportingcountriesrecordingpositivegrowthin February 2023 over February 2022 were Singapore, UAE, Saudi Arabia, Mexico, and Indonesia. The major decline observed among the top destinations includes the US, Germany,andItaly.

Region-wise, positive year-on-year growth was noted only in ASEAN and WANA (West Asia and North Africa) during February 2023. On a cumulative basis, year-on-year growth in exports was witnessed in North America followed by Latin America and Oceania while the highest decline was observed inNorth-EastAsia.

CommentingonFebruarytradedata, EEPCIndiaChairman

Mr. Arun Kumar Garodia said, “Our analysis indicates that global decline in demand for metals and metals products is mostly responsible for the negative growth in India’s exports. However, rising raw material prices especially iron and steel have also made our metal exporters less competitive in the globalmarket.”

Mr. Garodia noted that global trade projections do not look muchoptimisticalthoughthereareafewpositives.

As per the quick estimates of the Department of Commerce, Government of India, the share of engineering exports to total merchandise exports from India was 25.57% in February 2023 while for cumulative engineering exports from AprilFebruary2022-23,thesharewas23.86%.

Out of 34 engineering panels, 10 product panels witnessed positive growth in exports during February 2023 vis-a-vis the same month last fiscal. Major engineering products like iron and steel, products of iron and steel, non-ferrous metals like aluminum, nickel, lead, tin, and other products, industrial boilers, IC engines and parts, air-conditioning and refrigeration machinery, machinery for dairy, electrical machinery, and equipment, motor vehicles/cars, two & three wheelers, bicycle parts, auto tyres, and hand tools witnessed a decline in exports during February 2023 vis-à-vis February 2022.

On a cumulative basis, 22 out of 34 engineering panels recorded positive growth during Apr-Feb 2022-23 over the same period last fiscal. The major decline was witnessed in the iron & steel segment, non-ferrous segment, two-three wheelers,railwaytransport,bicycleparts,andprojectgoods.

Mumbai sees highest Avg rental growth of Warehousing space at 9.4 % in 2022: FICCI

NEW DELHI - Mumbai region witnessed maximum growth in weighted average rental of warehousing space at 9.4 per cent during the last calendar year on better demand for highquality assets and riseininputcosts,accordingtoareportbyVestianandFICCI.

Property consultant Vestian and industry body FICCI recently released a report ‘Warehousing & Logistics Sector in India’. “With improving occupier and investor sentiment in 2022, coupled with consistent demand for high-quality assets and an upsurge in input expenses, rental values for warehousing space saw a fair rate of increase across the key micro-markets in the country,” VestianFICCI said in the report.

On the weighted average rental value front, Mumbai region witnessed a growth of 9.4 per cent during the 2022 calendar year when compared with the rental values a year ago in 2021. According to the report, the weighted average rental of warehousing space in Bengaluru rose a 6.2 per cent in Bengaluru to Rs 20.5 per square feet per month.

Chennai saw a 3.8 per cent growth in weighted average rental to Rs 22 per square feet per month, while Mumbai witnessed a

9.4 per cent increase in rental to Rs 22.1 per square feet a month. The weighted average rental of warehousing space in Pune rose 9.1 per cent to Rs 24 per square feet per month.

In Delhi-NCR, the rental increased by 6.8 per cent to Rs 23.4 per square feet per month.

Hyderabad saw an increase of 5.8 per cent in 2022 to Rs 20 per square feet per month, while Kolkata witnessed 6.4 per cent rise to Rs 21.7 per square feet a month.

“India’s warehousing and logistics sector has not only shown remarkable resilience in the face of challenging economic headwinds but in fact the consistent growth in the absorption of warehousing space and the increasing institutional investment in this asset class in the past few years indicates the strong confidence of stakeholders and investors in the industry’s longterm growth prospects,” Vestian CEO Shrinivas Rao said. The sector will continue its upward trajectory in the forthcoming period, driven by the e-commerce boom, shift of unorganised to organised retail and strong policy making by the Government across sectors, notably the manufacturing sector, he added.

Vessels Due At Mumbai For Export Loading

Notice To Consignees

Zim Integrated Shipping Services

“NAVIOS INDIGO” V-6W I.G.M. No. 2338795 Dtd. 23-03-2023

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