We have been hearing that India buys a lot of goods from China and cannot function without them. But now things are reversing. We are still buying various goods from China, but in return, China is also taking our goods packed in ships. This time, it has made massive purchases in Indian markets. According to a report by India Engineering Exports, China has purchased 74 percent more engineering items from us this year compared to last year.
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In June, India’s engineering goods exports registered a stellar 21% growth. With this impressive growth, total exports for June reached $11.48 billion. EEPC India, the body of engineering exporters, stated on Monday that this surge was primarily driven by heavy demand from countries like China, the US, Germany, and Oman.
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Double Growth Compared to Last Year
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According to data, exports to China alone witnessed a massive surge of 74%, reaching $361.47 million. Prior to this, in the last financial year ending in March, total exports to China had also recorded a significant growth of around 37%.
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This rise in exports is a major relief for India’s trade. This growth has come at a time when shipping movements in the Red Sea and the Strait of Hormuz are disrupted, causing freight, insurance, and transit costs to increase significantly.
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Engineering Goods Account for a Quarter of Exports
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Talking about the first quarter of the current financial year, i.e., April-June, engineering exports grew by 18.09% to $34.14 billion, compared to $28.91 billion in the same period last year. The engineering sector alone accounts for more than a quarter of India’s total merchandise exports. The US still remains the world’s largest market for Indian engineering goods. In June, goods worth $1.95 billion were shipped to the US. Meanwhile, exports to Oman grew more than fourfold, reaching around $259 million.
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EEPC India Chairman Pankaj Chadha stated that despite the crisis in West Asia and the Middle East, the sector remains resilient. He said that engineering exports have crossed $10 billion every month for the last three months, and government support will be needed to sustain this momentum moving forward.
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Decline in Exports to Saudi Arabia
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According to the report, out of a total of 34 engineering product categories in June, 27 registered good growth compared to last year. However, exports to the UAE and Saudi Arabia witnessed a slight decline, while exports to Turkey staged a strong recovery after dropping significantly last year.
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What India Exports to China
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India supplies its engineering goods to several countries, including China and the US. These include industrial machinery, auto parts, and iron and steel. This comprises goods made of metals like copper and aluminum, which are used extensively in China’s electronics and manufacturing industry. India also exports boilers, IC engines and their parts, machine tools, injection molding machines, and machinery used in dairy, food processing, and textile industries to China.
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