India's Engineering Exports Rise 2.93% in September, Driven by China and ASEAN Amidst US Tariff Challenges

Engineering goods exports from India demonstrated resilience in September, achieving a 2.93% year-on-year increase to reach USD 10.11 billion. This marks the fourth consecutive month of growth for the sector. The performance was achieved despite a notable 9.4% decline in shipments to the United States, India's primary market for engineering goods, which saw imports drop from USD 1.55 billion to USD 1.4 billion. The Engineering Exports Promotion Council (EEPC) India attributed this decline to the impact of punitive tariffs imposed by the Donald Trump administration. Shipments to the UAE, the second-largest market, also saw a slight decrease. However, robust growth was observed in exports to China, which surged by 14.4% to USD 302.21 million. Positive contributions also came from other regions including ASEAN, North-East Asia, Sub-Saharan Africa, Latin America, and South Asia, helping the sector maintain its upward trajectory.

Impact: This news indicates positive momentum in a key export sector, contributing to foreign exchange earnings and potentially boosting investor confidence in manufacturing and engineering companies. It suggests diversification of export markets is crucial. The challenges mentioned, like tariffs and raw material availability, could impact future growth margins and competitiveness. Rating: 7/10

Difficult Terms:

FTAs (Free Trade Agreements): These are treaties between two or more countries to reduce or eliminate barriers to trade and investment between them, such as tariffs and import quotas. MERCOSUR: A South American trade bloc established by Argentina, Brazil, Paraguay, and Uruguay. It aims to promote free trade and the fluid movement of goods, people, and currency. GCC (Gulf Cooperation Council): A regional, intergovernmental political and economic union comprising six Arab states of the Persian Gulf: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. Rare-earth export controls: These are restrictions imposed by a country on the export of rare-earth elements, which are critical components in many high-tech products. China, for instance, has imposed such controls, affecting global supply chains.