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Softening price pressure and easing of interest rates in major advanced economies is set to spur demand. (Representative Photo)
EEPC India remains “cautiously optimistic” for the engineering exports growth in the current fiscal, even though the shipment registered a 7.3 per cent year-on-year increase in May, amounting to $9.98 billion, an official said on Friday.
This uptick is part of a consistent growth pattern, with the April-May period of FY25 witnessing exports totalling $18.65 billion, a modest rise from $18.25 billion for the two months of FY’24, the Engineering Export Promotion Council said.
“We remain cautiously optimistic with the upturn in shipments which reflects improvement in the demand scenario in key markets. The global economic outlook is expected to improve in the ongoing fiscal and exporting community remains optimistic,” EEPC India chairman Arun Kr Garodia said.
Softening price pressure and easing of interest rates in major advanced economies is set to spur demand, he said.
Garodia also pointed out that several Free Trade Agreements (FTAs) are under negotiation and these could be finalised within the fiscal year, potentially providing a significant impetus to the sector.
Amid both near and medium-term outlooks remaining positive, exporters are facing the challenge of high ocean freight rates on some key routes.
“Also, it has been seen that China is shipping large volumes to the US in the wake of additional import duties that could be applicable to Chinese goods from August this year. These factors could affect exports,” the EEPC chairman said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jun 14 2024 | 7:43 PM IST
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