Enginnering exports yet to feel the heat of GSP termination

The termination of the Generalised System of Preferences(GSP) by the US in the first week of June does not seem to have had an "overly negative impact" on Indian engineering exports to the world's largest economy,an EEPC India analysis said.

EEPC, however, remains cautioned as the trend would become clear only in the next few months, the engineering body said in a statement.

Unlike most of the global markets, engineering exports to the US remained in the positive territory both for June and the first quarter of the current fiscal.

"Though our engineering exports to the US went up to USD 990.5 million in June, 2019 from USD 913 million in the same month of 2018, registering a growth of 8.5 per cent, we have got to be watchful whether and how the withdrawal of the GSP by the US is panning out," said the EEPC India chairman Ravi Sehgal.

US retained its numero uno position, being the top exporting destination for India's engineering products during June 2019 over June 2018 as well as for April-June 2019 over April-June 2018, registering a positive growth rate.

For the cumulative three-month period of the current fiscal ending June, the shipments of engineering goods to the US went up to USD 2.92 billion, showing a growth of 5.2 per cent year on year from USD 2.78 billion in the April-June period of 2018-19, the EEPC said.