COVID-19: April product shipments down 63.93%
India’s April 2020 engineering exports contracted by a huge 91% in some cases due to the impact of Covid-19, an EEPC India analysis has shown, according to EEPC India analysis.
Only Singapore and China, out of top 25 export destinations, showed positive year-on-year growth in April shipments while the rest recording a massive contraction, 91% being the worst in shipments to the Nepalese and Mexican markets.
In a reflection of the scale of trade disruption, Singapore replaced the US as the number one destination for Indian engineering exports. The second position, just one more positive market, was China.
Total engineering exports declined 63.93% in April to US$2.31 billion from US%6.41 billion in the corresponding month of 2019.
As for the monthly data, annualised growth in India’s engineering product shipments to Singapore increased by was over 95% during April to US$553 million from US$283 million in April 2019.
India’s April engineering exports to China registered a positive monthly growth of more than 19% to US$173 million from US$145 million a year ago.
“The US has been our number one market, while the UAE, European Union countries and some our neighbouring SAARC nations were major destinations for us. But then, numbers have been turned on their head, under the Covid-19 impact,” EEPC India Chairman Ravi Sehgal said on 10 June 2020.
“Even as the global economies are trying hard to re-open, it would be long before exports can reach a level of reassurance,” he pointed out.
The engineering exports, which largely comprise manufacturing, face both internal and external challenges with the small and medium enterprises finding it even more difficult to stay afloat.
Raw material shortages, essentially steel, non-availability of workforce, unviable fixed costs and disruptions in the logistics are among the major domestic problems.
On the other hand, restrictions on the movement of people and goods, rising trade barriers and geopolitical issues remain challenging areas, he said.
On the other hand, engineering shipments to the US, the traditional top Indian market, nosedived by nearly 75% to US$222 million during the month under review from US$883 million in the comparable month of 2019.
The maximum damage of lockdown and restrictions was seen in despatches to Nepal, by as much as 91% from US$222 million to mere US$19 million. Similarly, shipment to Mexico dropped by 91% y-o-y from US$189 million to US$17 million. fiinews.com
