Rise in machinery exports from India: DHL study
Mumbai, Apr 30: The Indian manufacturing sector has registered a strong growth of over nine per cent in the last two years with the capital goods sector recording a 14-15 per cent growth, states the DHL India Trade Outlook report, a monthly report that measures the economy and trade in India.
The machinery manufacturers have played an important role in enhancing the competitiveness of the manufacturing sector. India's exports as well as imports of machinery and mechanical appliances have witnessed growth in the last few years. Both exports and imports of machinery and mechanical appliances (MMA) had a compounded annual growth rate (CAGR) of almost 22 per cent during the period 2001-05, the report stated.
India is a net importer of MMA, with value of imports being almost three times higher than that of exports. India's exports of MMA were worth USD 3.2 billion in FY2005-06 compared to imports at USD 9.3 billion for the same year.
USA is the leading exports destination for the Indian machinery industry, contributing to 17.4 per cent of India's total MMA exports followed by the UK, UAE, Singapore and Germany in 2005-06.
India's exports of industrial machinery have grown at 29.3 per cent per annum during 2001-05. Exports in 2005-06 stood at USD 796.3 million. US, again, continued to be the largest export destination for Indian industrial machinery producers and, along with UK and Germany, forms a prominent export destination for the auto machinery.
The report, however, concludes that although the Indian manufacturing sector has seen major improvements in its competitiveness and has established a presence in the world, it still has a long way to catch up with the other industrialised nations of the EU, the US and China.