Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

India’s iron and steel exports slump by 56%. How to course-correct?.


Date: 28-09-2022
Subject: India’s iron and steel exports slump by 56%. How to course-correct?
Engineering goods in FY22 reached an all-time high of $112.1 billion, significantly surpassing the target set by the Indian government and recording a 46% growth. However, this year’s performance hasn’t been much impressive. Engineering exports growth in July remained positive but underwent the sharpest deceleration in the last four months of the current fiscal year.

Our analysis suggests this fall can be attributed to weak demand due to a slowdown in economic activities from the EU and China and a 15% export duty on steel exports. Moreover, in July 2022 alone, India’s iron and steel exports, which dominate the engineering goods basket, declined by 56.1% on a y-o-y basis. The rise in iron and steel commodity prices may have contributed to its 89% y-o-y growth in value in FY22.
Powered By
VDO.AI

Despite these economic situations, the Indian engineering export sector has tremendous potential to emerge as a global player and expand its market share internationally. Following are some emerging trends and recommendations that industry exporters can consider for their long-term strategies.

India needs to invest heavily in capacity expansion and imitate big steel exporters like Japan and China, who import raw materials to make steel and export it overseas. Since India is rich in iron ore resources, it has an added advantage, allowing it to tap into markets to which China no longer caters. Moreover, post the US sanctions on Russia, leading Indian steel companies can capture the market share in Europe and the Middle East if they enhance their capacity utilization levels. They could a ..

From a consumer perspective, there has been a recent demand shift towards using more convenient and efficient equipment, for instance, kitchen gadgets like food processors. This presents Indian exporters with a huge opportunity to capitalize on the growing emphasis on convenience and rebrand their products to suit the requirements of consumers.

It is high time that India changes its basket composition, turns away from primary goods, and transitions toward complex value-added products. Focusing on emerging trends that will enable exporters to develop a foothold in new markets is a step in the right direction to increase the country’s exports of engineering goods.

Besides diversifying geographies, India needs to branch out more sector-wise. One such segment that exporters could look into is the manufacturing of textile machines. For this, exporters would require robust government support, including a strong push from relevant schemes and policies. Also, the think tank needs to start investing heavily in R&D capabilities, build science and technology networks, digital innovation hubs, partner with large corporations, etc., to get the ball rolling.
 
The US is the top importer of Indian engineering goods, which witnessed a 53% y-o-y growth in FY22, followed by UAE & China, recording a 74% and 11% rise, respectively. US businesses have a growing sentiment of nearshoring/onshoring to ensure customer proximity, product reliability, and bolster resilience. This will likely result in reduced future demand from the US for India’s current products. In addition, over-reliance on the US could cost India dearly, as has been the case with China dur ..

With a rich pool of skilled resources and government support, India can begin strategizing on building products that the US manufactures in the long term. This would cause the US to contemplate their ‘make or buy’ decision, where they would have to conduct a cost-benefit analysis to decide if they should manufacture engineering goods locally or import from India. Nevertheless, the time is ripe for India to leverage this growing market sentiment to embark on its innovation journey.

Source Name:-Economic Times
 
 
 
 

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 01-12-2022
Notification No. 101/2022 - Customs (N.T.)
Exchange rate Notification No. 101/2022-Cus (NT) dated 01.12.2022-reg

Date: 01-12-2022
Notification No. 40/2022-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to reduce the Special Additional Excise Duty on production of Petroleum Crude.

Date: 01-12-2022
Notification No. 41/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on Diesel.

Date: 01-12-2022
NOTIFICATION No. 04/2022-Central Excise (N.T.)
Appointment of the Commissioner of Central Excise and Service Tax (Appeals) as Central Excise officer for the entire territorial jurisdiction of the Principal Chief Commissioner/ Chief Commissioner of Central Excise and Service Tax for the purpose of passing Orders-in-Appeal for the CX & ST appeals filed after 30.06.2017-reg.

Date: 30-11-2022
Notification No. 100/2022-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

Date: 29-11-2022
No.98 /2022-Customs (N.T.)
Amendment of notification no. 47/2022–Customs (N.T.), dated the 31st May, 2022

Date: 29-11-2022
NOTIFICATION No. 99/2022-Customs (N.T.)
Amendment of notification number 48/2022-Customs (N.T.) dated the 31st May, 2022

Date: 25-11-2022
NOTIFICATION No. 61/2022-Customs
Seeks to amend certain specific FTA/PTA notifications.

Date: 23-11-2022
NOTIFICATIONNo. 23/2022 – Central Tax
Seeks to empower the Competition Commission of India to handle anti-profiteering cases under CGST Act, 2017 with effect from 01.12.2022.

Date: 23-11-2022
NOTIFICATION No. 24/2022 – Central Tax
Seeks to make fourth amendment (2022) to CGST Rules with effect from 01.12.2022.



Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001