IndiaÃ¢â‚¬â„¢s engineering goods exports up 54% in 9M of 2021-22

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IndiaÃ¢â‚¬â„¢s engineering goods exports up 54% in 9M of 2021-22

IndiaÃ¢â‚¬â„¢s engineering goods exports up 54% in 9M of 2021-22

Industry News
Jan 25,22

Engineering goods sector - which constitutes the largest (more than 27%) share of IndiaÃ¢â‚¬â„¢s total exports basket - recorded exports of $ 81.8 billion during April-December 2021 as compared to $ 52.9 billion during the first nine months (9M) of 2019-20.

IndiaÃ¢â‚¬â„¢s engineering goods exports up 54% in 9M of 2021-22

New DelhiÃ‚Â

Thanks to the Zero duty Export Promotion Capital Goods (EPCG) scheme, exports of IndiaÃ¢â‚¬â„¢s engineering goods jumped to $ 81.8 billion during April-December 2021 (Provisional) as compared to $ 52.9 billion during same period in the previous year (2020), registering a stupendous growth of 54%, said the Union Ministry of Commerce & Industry in a press release. Engineering goods sector constitutes the largest, more than 27%, share of IndiaÃ¢â‚¬â„¢s total exports basket during the period.

As compared to April-December 2019 ($ 59.8 billion), exports of engineering goods registered a growth of 37% while this represents a growth of 49% compared to April-December 2014 ($ 55 billion). In the month of December 2021, exports of engineering goods touched $ 9.79 billion, registering a growth of 38.41% over $7.07 billion logged in December 2020.

The overall exports of engineering goods in the last Financial Year (March 2020-April 2021) was $ 76.62 billion, and with the sector already logging $ 81.8 billion in the first three quarters of FY2021-22, the sector is set to scale further record highs despite the impact of the Covid 19 pandemic since January 2020.

IndiaÃ¢â‚¬â„¢s top five export destinations for the engineering goods sector in April-November 2021 (as per latest available data, share per cent mentioned in bracket) are: USA (14.7%), China (5.8%), UAE (5.1%), Italy (4%) & Germany (3.4%).

The impressive growth in engineering goods exports in recent years has largely been due to the Zero duty Export Promotion Capital Goods (EPCG) scheme of the Ministry of Commerce & Industry and forms part of the Foreign Trade Policy (FTP) of Government of India. The present policy which came into force on April 1, 2015, was for 5 years with validity upto March 31, 2020. In order to provide policy stability during the pandemic period, FTP 2015-20 was extended for the year 2021-22 i.e. up to March 31, 2022.

The scheme allows import of capital goods for pre-production, production and post-production (including Completely Knocked Down/ Semi Knocked Down thereof as well as computer software systems) at zero Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date (para 5.1 a of FTP).

The engineering goods sector comprises of metal products, industrial machinery and equipment, automobiles and its components, transport equipment, bicycles, medical devices and renewable equipment.