The imposition of restrictions by state governments to contain rising COVID-19 cases could affect the exports and the worst hit would be MSMEs, says the Engineering Export Promotion Council (EEPC).
The council, in an official statement, said recovery in the last few months of the fiscal year had the sector a ray of hope, however, now the second wave poses a downward risk. “In order to contain the virus spread, many states have imposed restrictions. This could affect exports and the worst impacted would be the micro, small and medium enterprises. The government, therefore, needs to expedite vaccination to lessen the impact of the pandemic.”
It said exports, which was driven by rising global demand and increased economic activities, of 32 out of 33 engineering products, industrial machinery and office equipment recorded positive growth in March. This was decoded as a sign of good times for exporters reeling under loss for the past one year due to the pandemic.
The council pointed out that the United States continued to be on the top of the list as major export destinations as engineering exports to America rose to USD 1,152,82 million in March 2021, compared to USD 917.02 million in the year-ago period. The council said exports to the US fell down in cumulative terms during 2020-21.
“Region wise, the European Union ranked as the numero uno destination leaving North America behind with a share of 18.5% of total engineering goods exports in 2020-21. India’s exports to North America ranked second with 18% share, while ASEAN region accounted for 15.4%,” the statement said.
In regards to China, which is India’s second largest export destination, the Council said exports grew USD 553.06 million in March, while the UAE retained its third position of largest export destination.