AHMEDABAD: Even as the domestic market continues to face challenges on the demand side, exports have come to the rescue of sectors such as pharmaceuticals, ceramics, chemicals and engineering. Export orders have not only helped these sectors stay afloat but also provided a cushion against slowing domestic demand.

 

Tile-makers see a surge in exports

 

Ceramic tile-makers in Morbi — India’s largest cluster of ceramics — shipped tiles worth Rs 2,700 crore in the April-July. All big ceramic players across Gujarat and India are operating at 80-85% capacity as export demand remains robust.

 

Domestic demand for ceramic tiles continues to languish with slow recovery of real estate industry. The export market is going strong, with many countries looking at sources other than China. There is also pent-up demand in markets.

 

 “The tile-makers are receiving export orders from the US, UK, Indonesia, Mexico and Europe and the Middle-East,” said Nilesh Jetpariya, President, wall tiles division, Morbi Ceramics Association (MCA).

 

Export orders rise in engineering

 

Engineering goods exports from India surged by about 9% in July. Some companies in Rajkot even had to fly back their skilled labourers from other states to fulfil orders.

 

With relations between the US and China getting strained, several American and European companies have turned their eyes on sourcing key engineering components from India.

 

As far as the engineering industry in Rajkot is concerned, the experts say, the share of export orders in overall production has surged to 50% in the past two months. Before the Covid-19 outbreak, the share was 35%.

 

“There has been strong demand for agricultural tools from African countries. In addition, export orders for auto parts, pumps, valves and bearings have picked up providing a much-needed cushion to the industry in this trying time,” said Brijesh Dudhagara, Vice-President of Rajkot Engineering Association. The maximum orders are flowing in from European, American and African nations, said industry players.

 

Breather for cotton yarn makers

A subdued textile market has left cotton yarn makers struggling for local orders, their exports have grown by 10% in the past two months. “Higher exports demand pushed up capacity utilisation of spinning mills to 70% in July and August. The improvement in exports has helped manufacturers sustain their costs and ensure inflow of revenues,” said Saurin Parikh, President, All Gujarat Spinners’ Association (AGSA).

 

The garments and apparel

The garments and apparel exports went down in April-July this year, as against the same period in 2019. However, when compared on a month-on-month basis, the readymade garment exports from the country firmed 55% in June and 32% in July.

“Since the markets in US and Europe have reopened, orders have started pouring in from the international market in a big way.

 

This helped recover export demand faster than domestic demand,” said Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI).