Engineering goods exports from India rose 11.8 per cent year-on-year to $28.96 billion in the April-June quarter on the back of a robust demand from countries such as the US, Germany, and Mexico.

The demand from China, however, fell sharply during this period and pulled down the growth momentum.

The downward trend in engineering goods exports to China continued in June with the total shipment value declining 55 per cent year-on year to $232.78 million during this month, reflecting the impact of the recurring Covid scare and complete shutdowns in key cities.

The decline in June exports numbers was steeper than in May (52.2 per cent) and April (48.2 per cent) this year.

In the first quarter (April-June) of the current financial year, India’s engineering exports to China remained much subdued, registering a 51.90 per cent year-on-year decline to $662.90 million.

In the first quarter of the previous financial year (2021- 22), the value of engineering exports to China had stood at $1378.20 million.

“China is one of the major export destinations for Indian engineering goods. Our analysis indicates that the fall in demand in China amidst Covid fears and the subsequent lockdowns in big trading centres have been a cause of low exports from India,” EEPC India chairman Mahesh Desai said.