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India's exports to US, China, UAE shrink in Sept; job-creating sectors like engineering, garments worst hit
India's exports to US, China, UAE shrink in Sept; job-creating sectors like engineering, garments worst hitBy Kirtika Suneja
Oct 13, 2022, 11:52 PM IST
New Delhi: India's exports to the US contracted 10.7% on-year in September while those to China shrank 45.8% as the country's overall shipments plummeted 3.5% last month with job-creating sectors such as engineering, garments and cotton yarn being the worst hit.
As per the analysis by the commerce and industry ministry, merchandise exports declined for six of the top 10 markets including the UAE and Bangladesh and 18 of the top 30 major commodities.
Engineering goods exports shrank 17% as Covid-19 restrictions led to a demand slowdown in China and Hong Kong coupled with 15% export duty on steel. Engineering goods exports to CIS countries were hit by the Russia-Ukraine war and Armenia-Azerbaijan tensions.
Similarly, high inventory stocks in the US and EU, economic downturn, higher interest rates and rising inflation in the UAE and Saudi markets made apparel exports contract 21.5% in September.
"High inventory stocks in the EU and US would last till October and we may see sluggish growth in this sector till then. Industry expects a pickup after December," said an official.
Cotton yarn, fabrics and made ups exports have declined 21% on-year in April-September.
The contraction in handicraft exports in the first six months of FY23 is 30.5% while in carpets is 19.1%, according to the analysis.
"We expect the Australia ECTA to boost exports and there is a need to diversify products that we export," the official added.
India aims to clock $470 billion of merchandise exports in 2022-23. Preliminary data released on October 3 showed $229.05 billion exports in April -September 2022-23, up 15.54% on-year.
"Export in certain sectors has seen a decline on account of slowdown in some developed economies and consequential slowdown in demands," the government had said, adding that certain measures to contain domestic inflation and domestic food security concerns have also impacted exports.
Among food products, India lost market share of rice in Iraq and fruit and vegetables in the UK and Bangladesh.
India's exports to US, China, UAE shrink in Sept; job-creating sectors like engineering, garments worst hit
India aims to clock $470 billion of merchandise exports in 2022-23. Preliminary data released on October 3 showed $229.05 billion exports in April -September 2022-23, up 15.54% on-year.
