India's engineering exports fell by over 3 per cent in February, the first time in seven months, because of steep decline in shipments to the key ASEAN markets of Singapore, Malaysia, Indonesia and Thailand with which India has entered into a Free Trade Agreement.
Engineering exports to these countries plunged sharply -- 79.11 per cent to Singapore, a major member of the Association of Southeast Asian Nations; Thailand (61 per cent), Malaysia (70 per cent) and Indonesia (36 per cent), according to engineering exporters body EEPC India.
However, engineering exports to the US turned around from negative to a growth of 8 per cent. However, the cumulative April-February data for the US still remains in the negative by about 5 per cent.
While exports to the ASEAN countries dropped sharply, the data showed a sizeable improvement in shipments of key engineering products to South Korea and Japan, the two other countries with which India has entered into FTA, EEPC said.
Shipments to South Korea rose by over 60 per cent and to Japan, by 16 per cent during February.
Also, several major sectors have shown negative growth in February, compared to the same month in 2013.
Segments with low engineering exports in February include Iron and Steel category that accounts for about 14-15 per cent of India's total engineering exports. The sector's export fell by 14.19 per cent to USD 708.79 million, as against USD 826 million in February 2013.
Besides, Industrial Machinery, which accounts for 14 per cent of India's engineering exports, witnessed negative growth of 8 per cent recording exports of USD 785.94 million in February, EEPC India said.
