"The sentiment hit by Britain's decision to leave the European Union has not come in the way of India's engineering exports to UK and other two big markets of Germany and France, as these destinations defied the general declining trend, giving positive growth to the manufacturing and high-tech exports," EEPC India Chairman T S Bhasin said in a statement issued here.
Engineering exports to Britain went up by over 12 per cent to $215 million in July from $192 million in the same month of the previous year. Shipments to Germany were even better close to $200 million, rising by over 19 per cent year on year from $168 million in July 2015. Exports to another key market, France were moderately higher by 2.29 per cent to $86 million from $about $84 million for the period under review.
"Somehow, the reality has sunk in. Besides a quick decision on the change of Prime Minister in UK too helped calm the nerves. New Prime Minister Teresa May is well respected, giving a re-assurance to the business community," he said. He said the engineering exports to the UK are in line with the trend of the Britain's economy defying concerns which centered around the outcome of the June 23, referendum in that country. Besides, another key indicator of the UK retail sales in July also showed 1.4 per cent increase. "From the engineering exports point of view, it is important to see that our shipments went up to UK despite about 11 per cent trade-weighted drop in prices of Pound Sterling, making Britain's imports expensive," Bhasin added.
According to EEPC, despite reporting a rise in overall exports for the consecutive two months of May and June 2016, it slipped yet again in July contracting by 12.11 percent as against a positive growth by 2.57 percent in the previous month. Cumulative engineering exports continued to decline as engineering exports for the first four months of the current fiscal dropped by 5.82 percent to $20.27 billion in April-July 2016-17 from $21.53 billion during April-July 2015-16.