India has emerged as a net exporter of agri-machinery to some of the advanced countries like the US, the UK, Germany and Italy, the engineering export body said.
The Engineering Export Promotion Council (EEPC) India Vice Chairman Arun Garodia said in a statement that tractors were the largest component of the agri-machinery exports from the country, accounting for 66 per cent of the shipments.
“India’s export of agricultural machinery during 2Ol9 -2O was $ 1024.58 million witnessing a positive trade balance of $ 708.3 million,” the EEPC said in the statement quoting Minister of state for Agriculture and Farmers Welfare, Parshottam Rupala.
The global agriculture equipment market is projected to reach $ 279.5 billion by 2025, growing at a compound annual growth rate (CAGR) of 6.5 per cent from 2018 to 2025.
India exported $ 782.93 million worth of agri machinery to the UK, North America, Eastern Europe, EU, Africa, ASEAN and SAARC during 2019-20, accounting for 76.41 per cent of such exports, the statement said. Exports of engineering goods declined over 18 per cent to $ 26 billion in the April- August period of the current fiscal, EEPC India said.
The EEPC said the shipment of such goods was at $ 31.9 billion in the first five months of the previous fiscal. According to the council, 28 of 33 product categories showed a year-on-year fall in exports. On a cumulative basis, the decline in engineering exports was 18.73 per cent during the April-August period of the 2020-21 fiscal, it said.
“No doubt, the overall export market remains very challenging as the COVID-19 continues to rage the world. However, the early signals point towards a pickup in industrial activity in select countries, mostly in North Asia,” EEPC India said.
The council said an improvement in exports of iron, steel, copper and zinc in the first five months of the current fiscal was witnessed. However, the shipment of value-added iron and steel products saw a 29.7 per cent decrease in the period, it said.