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FTAs propel engineering exports to Japan,S Korea

Date 31-December-2013
Subject FTAs propel engineering exports to Japan,S Korea

New Delhi : Free trade agreements (FTAs) have proved to be beneficial for India, with engineering exports to Japan and South Korea showing a rising curve. Singapore, however, was an exception during the April-November period this fiscal, according to an analysis by the engineering exporters’ body, EEPC India.

Apart from ASEAN, India has operational FTAs with important trading partners like Japan and South Korea. Engineering exports to Japan grew 17% during the April-November period of the current fiscal to $568 million from $485 million.

Shipments of engineering goods to South Korea witnessed a jump of over 13% to $739 million during the period.

EEPC chairman Anupam Shah said an exception was seen in the case of Singapore, a country with which India has significant bilateral trade, including those of engineering goods. Exports of engineering goods to Singapore in the April-November period saw a 2.11% drop to $1,995 million from $ 1,997 million during the same period a year ago.

A similar trend was seen in trade with neighbouring countries like Bangladesh,Sri Lanka and Nepal, with which India enjoys a liberalised trading regime. Engineering despatches to Sri Lank went up by 18.57% to $ 1,342 million for the period under review from $1,132 million during the same period a year ago. Likewise, shipments to Nepal were up 20.84% to $ 577 million from $ 477 million.

On the other hand, western countries such as the US and Germany did not account for much of India’s engineering exports, even though the base of trading volume is quite large, Shah said.

He said though shipments to the US dropped 9.19% to $3,909 million during April-November from $ 4,305 million, the country continues to be India’s largest trading destination. The same is true of Germany, where consignments fell by about 6% though overall shipments were above $1,300 million.

“The signs of recovery in some key western countries, such as the US, are hazy. Month on month, there was a drop of over 14% in overall engineering exports in November this year, Shah said.

Source : dailyshippingtimes.com

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