Posted on 23 Oct 2015
Iron and steel exports plummeted by
41 per cent to $4.57 billion in September against $7.69 billion a year ago, hit
by a subdued economic sentiment mainly in the commodities market.
"The year on year September fall in iron and steel is more than cumulative
decline during April-September period against the comparable months of
2014," Engineering Export Promotion Council of India Chairman Anupam Shah
said.
EEPC India is the apex organisation
of the engineering sector in the country.
This is quite an alarming development. Global slowdown is really biting the
sector, Shah said.
Over 40 per cent drop in India's exports of primary iron and steel has come
about on the back of a massive fall in shipments to the US, Italy, UAE,
Bangladesh and Nepal among others in September this year, EEPC India said.
However, some consolation was provided
by Belgium, China and Iran for the month even as the setback in these exports
has dealt a severe blow to the country's total engineering exports, it added.
Iron and steel along with non-ferrous metals form a major component of the
total exports from the engineering sector.
"Essentially, the fall is seen more in value terms because of a steel drop
in international prices while the volume is also under pressure due to subdued
sentiment in the entire commodity space," Shah said.
Engineering exports which contribute maximum to the country's export basket and
are dominated by the small and medium enterprises generating large employment
are in deep crisis, he rued.
"The sector requires immediate
help by way of interest sub-vention, increased refund of local duties and
infrastructure support," Shah suggested.
The big fall came about as shipments to the US dropped by 77 per cent to $19.81
million in September from $84.86 million in the same month last year.
Likewise, export of these basic material to Italy fell by 57.23 per cent to
$21.14 million from $49.42 million. To Nepal, the fall was even steeper by
85.58 per cent to $7.27 million from $50.44 million.
The consignments to Thailand were down 85.43 per cent to $4.74 million from
$32.53 million, EEPC India said.
"Some solace was visible, though
Belgium where exports of iron and steel increased to $36.22 million from $17.62
million rising by over 105 per cent and China to $6.12 million from $5.71
million, increasing by 7 per cent," it added.
To Iran, the shipments went up by 9 per cent to $29.61 million from $27.08
million, it said.
