In a major rebound of trade since the onset of the Covid-19 pandemic, exports of engineering goods from the country recorded an impressive 70.28 per cent growth in March.
India’s total merchandise exports during this period were $34 billion as compared to $21.49 billion in March 2020 registering a jump of 58.23 per cent.
The monthly growth is the best-ever performance so far. The sudden jump in outbound shipments offers hope of a sustained growth in the sector in the coming months on the back of vaccine roll-out and containment of virus spread.
With major economies of the world including India taking steps to boost demand and enhance business activities, international trade could reach pre-Covid level sooner than expected.
“The strong growth in exports of engineering goods in the month of March suggests a bright outlook for the sector but one needs to be cautious before arriving at any conclusion on the basis of short term surge,” said EEPC India Chairman Mahesh Desai.
“Despite downside risks in view of new virus strains and possible disruption in trade we remain optimistic given that the government has taken a number of measures to make India manufacturing hub and export competitive.”
Stellar performance by the engineering goods sector pushed the overall merchandise exports in March.
It is among the major commodity groups of export which recorded positive growth during March 2021 along with iron ore, electronic goods and gems and jewellery.
Engineering items account for about 25 per cent of India’s total global exports in the goods sector and is one of the largest foreign exchange earners.
It employs nearly 4 million skilled and semi-skilled workers.