| Date: |
21-08-2015 |
| Subject: |
India's engineering exports to China witness huge drop of 36 per cent |
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KOLKATA: In the midst of debate on the impact of slowdown in the Chinese economy on rest of the world, India's engineering exports have started witnessing a biting effect with huge drop of 36 per cent in export of non-ferrous metals to China in June, 2015, an analysis by the EEPC India has shown.
Exports of these metals dropped to $85.09 million in June 2015 from $132.67 million a year ago. " China is the topmost importer for Non ferrous Metals importing around 19 per cent of India's total export of these metals ," said Chairman of the EEPC India Mr Anupam Shah.
He said in the non-ferrous metals, the slowdown impact in China is being directly felt on India's engineering exports , while in several other items, the indirect impact would be felt once the domino effect spreads.
For overall exports of engineering goods , as a sector, China recorded drop of 25 per cent in June 2015 due to fall in Chinese import demand.
The total shipments of all the engineering goods to China during the month dropped to $152 million from $202 million a year ago.
Signals for the spread of slowdown due to China factor are already visible in Germany, Colombia and the Netherlands where demand for non-ferrous metals is showing significant fall. " The Chinese cut in demand has affected the sentiment in rest of the world," the EEPC said. The situation in rest of the world is no better, necessitating that the drawback rates be increased along with interest subvention by the Indian government.
For China, same is the situation with regard to industrial machinery which reported a decline of 18.25 per cent in June this fiscal over the same month last year from $32.76 million to $26.78 million.
Source : economictimes.indiatimes.com
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