Engineering exports recorded around 3.3% cumulative growth year-on-year during the first five months of fiscal 2023-24

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April-2024 engineering exports hit peak growth for fiscal 2023-2024

Trade Flow Export figures (in $ billion)
Mar-2023 Mar-2024 Mar-2024 over Mar-2023
Engineering exports 8.95 8.67 -3.17%
Overall merchandise exports 34.62 34.99 1.08%
Share of engineering (%) 25.85% 24.76% ---
Service Exports 25.78 29.57 14.70

Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India

Overall Engineering Exports vs Engineering Exports Excluding Steel Segment (Values in USD Million)

Trade Flow Export in Mar-2023 Export in Mar-2024 Growth
Overall engineering exports 8949.36 8665.39 -3.17
Engineering exports excluding Iron and Steel 7622.24 7821.49 2.61

Source : DGCI&S, Govt. of India


Engineering Exports: Monthly Trend

The monthly engineering figures for 2023-24 vis-à-vis 2022-23 are shown below as per the latest DGCI&S estimates: 
Table 1: Engineering Exports: Monthly Trend in 2023-24

US$ million

Month 2022-23 2023-24 Growth (%)
April 8949.36 8665.39 -3.17

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-April 2023-24

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during March 2024 over March 2023 as well as in cumulative terms during April-March 2023-24 vis-à-vis April-March 2022-23. The data clearly shows that top 25 countries contribute almost 76% of total engineering exports. 
Table 2: Engineering exports country wise

(US$ million)

Countries Mar-2023 Mar-2024 Growth (%) April-April 2022-23 April-April 2023-24 Growth (%)
U S A 1399.27 1416.67 1.24% 1399.27 1416.67 1.24%
SAUDI ARAB 292.72 435.72 48.85% 292.72 435.72 48.85%
U ARAB EMTS 360.51 392.55 8.89% 360.51 392.55 8.89%
SINGAPORE 296.57 375.91 26.75% 296.57 375.91 26.75%
GERMANY 353.12 321.62 -8.92% 353.12 321.62 -8.92%
ITALY 398.6 309.14 -22.44% 398.6 309.14 -22.44%
U K 276.69 301.16 8.84% 276.69 301.16 8.84%
MEXICO 251.49 296.45 17.88% 251.49 296.45 17.88%
TURKEY 274.51 219.06 -20.2% 274.51 219.06 -20.2%
CHINA P RP 183.24 210.29 14.76% 183.24 210.29 14.76%
KOREA RP 212.65 209.33 -1.56% 212.65 209.33 -1.56%
TAIWAN 49.16 183.02 272.3% 49.16 183.02 272.3%
JAPAN 178.17 173.65 -2.53% 178.17 173.65 -2.53%
NEPAL 214.48 171.61 -19.99% 214.48 171.61 -19.99%
BRAZIL 174.27 165.41 -5.08% 174.27 165.41 -5.08%
THAILAND 161.1 152.57 -5.29% 161.1 152.57 -5.29%
FRANCE 182.45 152.27 -16.54% 182.45 152.27 -16.54%
BANGLADESH PR 199.84 148.18 -25.85% 199.84 148.18 -25.85%
BELGIUM 138.62 147.83 6.65% 138.62 147.83 6.65%
PHILIPPINES 57.72 145.28 151.69% 57.72 145.28 151.69%
NETHERLAND 211.48 137.75 -34.86% 211.48 137.75 -34.86%
SOUTH AFRICA 176.1 130.68 -25.8% 176.1 130.68 -25.8%
INDONESIA 286.96 118.79 -58.6% 286.96 118.79 -58.6%
RUSSIA 130.91 118.56 -9.43% 130.91 118.56 -9.43%
VIETNAM SOC REP 112.57 116.45 3.45% 112.57 116.45 3.45%
Total engineering exports to top 25 countries 6573.19 6549.94 -0.35% 6573.19 6549.94 -0.35%
Total engineering exports 8949.36 8665.39 -3.17% 8949.36 8665.39 -3.17%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

The following table depicts region wise India’s engineering exports for April-March 2023-24 as opposed to April-March 2022-23.
Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-April 2022-2023

(US$ million)

Regions Mar-2023 Mar-2024 Growth (%) April-April 2022-23 April-April 2023-24 Growth (%)
NORTH AMERICA 1742.26 1824.57 4.72% 1742.26 1824.57 4.72%
EUROPEAN UNION 1921.75 1593.57 -17.08% 1921.75 1593.57 -17.08%
WANA 1106.11 1140.93 3.15% 1106.11 1140.93 3.15%
ASEAN 1044.45 1021.53 -2.19% 1044.45 1021.53 -2.19%
N E ASIA 633.16 788.09 24.47% 633.16 788.09 24.47%
OTHER EUROPE 580.51 579.45 -0.18% 580.51 579.45 -0.18%
SSA( Sub Saharan Africa) 639.96 522.19 -18.4% 639.96 522.19 -18.4%
SOUTH ASIA 507.19 476.65 -6.02% 507.19 476.65 -6.02%
LATIN AMERICA 483.27 444.51 -8.02% 483.27 444.51 -8.02%
CIS 155.27 167.58 7.92% 155.27 167.58 7.92%
OCEANIA 133.42 105.48 -20.94% 133.42 105.48 -20.94%
OTHERS 1.99 0.85 -57.48% 1.99 0.85 -57.48%

Note : *Figures have been rounded off.

Source : DGCI&S **Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.

PRODUCT PANEL WISE ENGINEERING EXPORTS

In this section we look at the Engineering Panel wise exports for the month of March 2024 vis-à-vis March 2023 as well as the cumulative exports for April-March 2023-24 vis-à-vis April-March 2022-23. These are indicated in the tables below. 
Table 4a. Trend in exports of iron and steel and its products

(US$ million)

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
IRON AND STEEL 1327.12 843.9 -36.41% 1327.12 843.9 -36.41%
PRODUCTS OF IRON AND STEEL 830.88 730.88 -12.04% 830.88 730.88 -12.04%
Sub Total 2158 1574.77 -27% 2158 1574.77 -27%

Source : DGCI&S

Table 4b. Trend in exports of Non-Ferrous Metals and Products

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
Aluminium and products made of Aluminium 623.76 647.16 3.75% 623.76 647.16 3.75%
Copper and products made of copper 193.85 128.42 -33.75% 193.85 128.42 -33.75%
Lead and products made of Lead 39.28 63.14 60.73% 39.28 63.14 60.73%
Nickel and products made of Nickel 13.59 13.24 -2.61% 13.59 13.24 -2.61%
Other Non Ferrous Metals and their products 61.81 60.81 -1.62% 61.81 60.81 -1.62%
Tin and products made of Tin 0.62 1.24 99.55% 0.62 1.24 99.55%
Zinc and products made of zinc 92.01 66.65 -27.56% 92.01 66.65 -27.56%
Sub Total 1024.93 980.65 -4% 1024.93 980.65 -4%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
IC Engines and Parts 300.15 286.69 -4.48% 300.15 286.69 -4.48%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 662.21 685.32 3.49% 662.21 685.32 3.49%
Machine Tools 66.34 59.58 -10.19% 66.34 59.58 -10.19%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 209.02 206.31 -1.29% 209.02 206.31 -1.29%
Nuclear Reactors, Industrial Boilers and Parts 58.38 65.7 12.54% 58.38 65.7 12.54%
Pumps of all types 123.46 107.59 -12.85% 123.46 107.59 -12.85%
Sub Total 1419.55 1411.19 -0.59% 1419.55 1411.19 -0.59%

Source : DGCI&S

Table 4d. Trend in exports of Electrical Machinery and Equipment

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
Electric Machinery and Equipment 941.9 1032.84 9.65% 941.9 1032.84 9.65%

Source : DGCI&S

Table 4e. Trend in exports of Auto and auto parts

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
Auto Components/Parts 609.532 605.181 -0.71% 609.532 605.181 -0.71%
AUTO TYRES AND TUBES 227.711 253.217 11.2% 227.711 253.217 11.2%
Motor Vehicle/cars 676.512 602.79 -10.9% 676.512 602.79 -10.9%
Two and Three Wheelers 204.248 248.681 21.75% 204.248 248.681 21.75%
Sub Total 1718.004 1709.869 -0.47% 1718.004 1709.869 -0.47%

Source : DGCI&S

Table 4f. Trend in exports of aircraft, spacecraft and parts and ships, boats and floating structures

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
Aircrafts, Spacecrafts and Parts 240.91 415.64 72.53% 240.91 415.64 72.53%
Ships, Boats and Floating Structures 323.18 265.16 -17.95% 323.18 265.16 -17.95%
Sub Total 564.08 680.8 20.69% 564.08 680.8 20.69%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels April-2023 April-2024 Growth April-April 2022-23 April-April 2023-24 Growth
BICYCLE AND PARTS 29.51 27.94 -5.33% 29.51 27.94 -5.33%
Cranes, Lifts and Winches 64.61 94.88 46.84% 64.61 94.88 46.84%
Hand Tools, Cutting Tools and Implements made of Metals 78.06 77.57 -0.62% 78.06 77.57 -0.62%
Medical and Scientific Instruments 184.89 189.27 2.37% 184.89 189.27 2.37%
OFFICE EQUIPMENTS 30.36 18.98 -37.49% 30.36 18.98 -37.49%
OTHER CONSTRUCTION MACHINERY 220.09 242.88 10.36% 220.09 242.88 10.36%
OTHER MISC. ITEMS 353.22 453.57 28.41% 353.22 453.57 28.41%
PRIME MICA AND MICA PRODUCTS 3.91 2.24 -42.66% 3.91 2.24 -42.66%
Railway Transport and Parts 27.71 31.16 12.46% 27.71 31.16 12.46%
PROJECT GOODS 0.35 0.11 -67.67% 0.35 0.11 -67.67%
OTHR RUBBER PRODCT EXCPT FOOTW 130.19 136.67 4.98% 130.19 136.67 4.98%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-April 2022-23 April-April 2023-24 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 252.76 256.3 1%
ITALY 248.77 183.97 -26%
U K 74.55 86.61 16%
BELGIUM 74.64 83.19 11%
U ARAB EMTS 113 79.27 -30%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
TAIWAN 16.79 138.17 723%
U S A 114.74 125.32 9%
KOREA RP 118.07 100.96 -14%
CHINA P RP 27.45 64.39 135%
JAPAN 75.23 51.73 -31%
Industrial Machinery
U S A 289.21 296.12 2%
GERMANY 78.77 76.92 -2%
THAILAND 67.03 63.71 -5%
U ARAB EMTS 51.18 61.2 20%
CHINA P RP 50.34 52.6 4%
Electrical Machinery
U S A 216.59 227.71 5%
SINGAPORE 61.54 112.62 83%
U K 47.87 57.29 20%
GERMANY 76.98 50.12 -35%
KOREA RP 17.15 47.4 176%
Automobiles
U S A 190.9 187.84 -2%
MEXICO 138.88 164.47 18%
SAUDI ARAB 90.91 132.36 46%
TURKEY 75.95 97.66 29%
SOUTH AFRICA 112 78.97 -29%
Aircrafts and Spacecraft parts and products
SAUDI ARAB 3.9 112.74 2792%
U ARAB EMTS 15.17 53.22 251%
U S A 47.97 51.6 8%
SRI LANKA DSR 0.75 28.55 3683%
FRANCE 20.57 19.38 -6%
Ships Boats and Floating products and parts
SINGAPORE 145.13 170.67 18%
U ARAB EMTS 12 38.02 217%
NORWAY 0 33.42 N/A
FINLAND 0 11.73 N/A
SRI LANKA DSR 12.87 7.53 -42%
Project Goods
U S A 0.01 0.06 375%
TANZANIA REP 0.14 0.02 -85%
U ARAB EMTS 0 0.01 N/A
GERMANY 0 0.01 61%
AUSTRIA 0 0.01 N/A
Other Rubber Product Except Footwear
U S A 29.34 30.06 2%
GERMANY 9.42 9.62 2%
CHINA P RP 5.02 5.34 6%
U ARAB EMTS 4.85 4.86 0%
NETHERLAND 3.96 4.84 22%
Other engineering products
U S A 257.46 241.27 -6%
PHILIPPINES 6.08 97.1 1497%
U K 48.64 51.96 7%
GERMANY 48.33 46.3 -4%
U ARAB EMTS 38.72 40.24 4%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

State wise engineering export performance

State wise engineering export performance

The table below indicates the exports from top Indian states. It is evident from the table that almost 90.4 % of India’s exports is contributed by the listed 12 states. Within this almost 50 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together.

Table 6: Top state wise engineering export performance - April-April 2023-24

(US$ million)

Top States Cumulative Export April-April 2023-24 Share % Remark
Maharashtra 22992.9 21.03% 90.4% share covered by top 12 states
Tamil Nadu 16844.6 15.41%
Gujarat 14753.3 13.5%
Odisha 7125.2 6.52%
Haryana 6753.8 6.18%
Karnataka 6709.1 6.14%
Andhra Pradesh 4885.6 4.47%
Delhi 4599.7 4.21%
Uttar Pradesh 4117.9 3.77%
Telangana 3458 3.16%
Rajasthan 3405.3 3.12%
West Bengal 3134.8 2.87%
Punjab 2775.3 2.54%
Madhya Pradesh 1849.6 1.69%
Daman & Diu And Dadra & Nagar Haveli 1475 1.35%
Chhattisgarh 984.8 0.9%
Jharkhand 922.2 0.84%
Kerala 905.2 0.83%
Uttarakhand 791.1 0.72%
Goa 344.6 0.32%
Puducherry 209.7 0.19%
Himachal Pradesh 145.2 0.13%
Chandigarh 50.1 0.05%
Bihar 50 0.05%
Assam 16.3 0.01%
Jammu & Kashmir 10.9 0.01%
Arunachal Pradesh 2.4 0%
Sikkim 1.6 0%
Meghalaya 0.7 0%
Andaman & Nicobar 0.3 0%
Manipur 0 0%
Tripura 0 0%
Nagaland 0 0%
Ladakh 0 0%
Mizoram 0 0%
Lakshadweep 0 0%

Source : DGCI&S

Region wise engineering exports

In terms of region, western region which includes industrial states like Maharashtra and Gujarat is the front runner in terms of exports with 34.5 percent share. Tamil Nadu from the Southern Region has improved its export performance and it ranked second after Maharashtra, while Gujarat and Odisha ranked third and fourth during AprilMarch 2023-24 and Haryana came up to fifth position while Karnataka came down to sixth position compared to previous the previous months.

Note : DGCI&S state wise data available till February-2024

Table 7: Region wise exports from India till February-2024

Value in US$ million

Region Mar-2023($Mn) Mar-2024($Mn) Growth % Apr-Mar 2022-23($Mn) Apr-Mar 2023-24 ($Mn) Growth %
WESTERN REGION 4005.3 4070.4 1.63% 39552.8 41415.4 4.71%
SOUTHERN REGION 2792.5 3884.2 39.09% 31372.4 33012.2 5.23%
NORTHERN REGION 2088.1 2235 7.04% 21455.5 22650.9 5.57%
EASTERN REGION 1300.5 1096.1 -15.72% 13870.7 12236.7 -11.78%
Grand Total 10186.4 11285.7 10.79% 106251.4 109315.2 2.88%

CORRELATION BETWEEN MANUFACTURING PRODUCTION AND ENGINEERING EXPORTS

Engineering sector is an important component of the broader manufacturing sector and the share of engineering production in overall manufacturing output is quite significant. As exports generally come from what is produced within a country, some correlation between manufacturing production growth and engineering export growth should exist. We briefly looked at the trend in manufacturing growth as also engineering export growth to see if they move in tandem. It may be mentioned that manufacturing has 77.63% weightage in India’s industrial production.

Engineering export growth and manufacturing output growth moved in the same direction in as many as nine out of twelve months in each of the fiscal years 2019-20 and 2020-21. During fiscal 2021-22, engineering export growth and manufacturing growth moved in the same direction in seven out of twelve months while in fiscal 2022-23, as many as 10 out of 12 months saw engineering exports and manufacturing output moved in the same direction.

Ten out of the first ten months of fiscal 2023-24 saw engineering exports growth and manufacturing output growth moved in the same direction barring April 2024. During April, decline in engineering export was slightly higher over Mar 2024 while manufacturing output growth recorded a sharp rise. During May and July 2023, engineering exports witnessed slower decline and manufacturing output managed higher growth over the previous month while in June 2023, engineering exports conceded higher decline and manufacturing output growth slowed down. During August, October, December in 2023 and February 2024, both engineering exports and

manufacturing output recorded higher growth (engineering exports came back to growth path in August and December 2023 from decline in previous month) while in September 2023, November 2023 and January 2024, both of them conceded slower growth or decline.

The link between these two may not be established on a monthly basis, but a positive correlation may be seen if medium to long term trend is considered.

Table 8: Engineering exports growth vis-à-vis manufacturing growth from April 2020
Months/ Year Engg. Export Growth (%) Manufacturing Growth (%)
April 2020 -63.05 -66.6
May 2020 -22.17 -37.8
June 2020 -5.18 -17.0
July 2020 10.56 -11.4
August 2020 -7.01 -7.6
September 2020 4.09 0.4
October 2020 -5.01 4.5
November 2020 -8.37 -1.6
December 2020 -0.93 2.7
January 2021 16.66 -0.9
February 2021 -4.94 -3.4
March 2021 67.75 28.3
April 2021 236.85 196.0
May 2021 50.21 32.1
June 2021 51.00 13.2
July 2021 42.57 10.5
August 2021 58.63 11.1
September 2021 35.11 4.3
October 2021 51.76 3.3
November 2021 37.28 0.3
December 2021 47.42 0.6
January 2022 25.63 1.9
February 2022 35.49 0.2
March 2022 19.72 1.4
April 2022 18.30 5.6
May 2022 11.45 20.6
June 2022 3.01 13.0
July 2022 -0.03 3.2
August 2022 -12.64 -0.5
September 2022 -11.39 2.0
October 2022 -19.68 -5.8
November 2022 0.09 6.7
December 2022 -11.60 3.6
January 2023 -9.76 4.0
February 2023 -9.73 5.6
March 2023 -7.49 0.5
April 2023 -7.27 5.5
May 2023 -4.13 6.3
June 2023 -10.94 3.5
July 2023 -6.65 5.0
August 2023 7.83 9.3
September 2023 6.81 4.5
October 2023 7.20 N A
November 2023 -3.48 1.2
December 2023 9.82 4.5
January 2024 4.21 3.6
February 2024 15.9 5.0
March 2024 10.66 N A

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during March 2024 and what was the recent trend in Re-Dollar movement? In order to get a clearer picture of the recent Re-Dollar trend, not only we took the exchange rate of March 2024, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2023-24 as well as 2022-23 as mere one-month figure does not reflect any trend. The following table clearly depicts the short-term trend:

Fig 3: Trend of Rupee vis-a-vis US dollar from April 2020

(Monthly Average Rate of FBIL has been considered)

Source : FBIL

Table 9: USD-INR monthly average exchange rate in 2024-25 vis-à-vis 2023-24

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR) Year-on-Year Change (%) Direction Month-on-Month Change (%) Direction
Month 2023-24 2024-25
April 82.02 83.41 1.69 Depreciation 0.49 Depreciation

Rupee depreciation vis-à-vis the US Dollar continued on a year-on-year basis and this time in March 2024, Rupee depreciated on a month-on-month basis too after appreciation in previous three months. Outflow of funds from India capital market due to global economic and geo political uncertainty pushed Rupee lower.

Table 10: USD-INR monthly average exchange rate in 2023-24 vis-à-vis 2022-23

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR) Year-on-Year Change (%) Direction Month-on-Month Change (%) Direction
Month 2022-23 2023-24
Apr 76.17 82.02 7.68 Depreciation -0.33 Appreciation
May 77.32 82.34 6.49 Depreciation 0.39 Depreciation
Jun 78.04 82.23 5.37 Depreciation -0.13 Appreciation
Jul 79.60 82.15 3.20 Depreciation -0.10 Appreciation
Aug 80.23 83.04 3.50 Depreciation 0.78 Depreciation
Sep 80.23 83.04 3.50 Depreciation 0.30 Depreciation
Oct 82.34 83.24 1.09 Depreciation 0.24 Depreciation
Nov 81.81 83.30 1.82 Depreciation 0.07 Depreciation
Dec 82.46 83.28 0.99 Depreciation -0.02 Appreciation
Jan 81.90 83.12 1.49 Depreciation -0.19 Appreciation
Feb 82.61 82.96 0.42 Depreciation -0.19 Appreciation
Mar 82.29 83.00 0.86 Depreciation 0.05 Depreciation

Source : FBIL, EEPC Research

TREND IN ENGINEERING TRADE BALANCE

We now present the trend in two-way yearly trade for the engineering sector for the 2023-24 depicted in the table below:

Table 11: Monthly Trend in Engineering Trade Balance for the current FY

(US$ million)

Trade Flow Apr
Engineering Export 11034.8
Engineering Import 10985.6
Trade Balance -0.4

Source : DGCI&S

TO CONCLUDE...

The Indian engineering exports revived in the last few months of FY 2023-24 contributing towards the significant cumulative positive growth for the entire fiscal. Revival of exports was noted in many key regions including North America, EU and North East Asia. Our new FTAs with UAE and Australia has also been effective in boosting our exports to WANA and Oceania regions. It is important to mention here that the global trade is also showing signs of revival. This performance was made even though the Indian exporters faced a number of issues including decline in demand in key geographies, forex crisis in many markets, geopolitical conflicts across the world and logistical issues. In 2023, global merchandise exports declined by 5% - compared to that India’s performance has been good.

The UNCTAD update further mentions that the outlook for 2024 remains positive despite certain uncertainties such as the geopolitical conflicts and logistical issues. The protectionist environmental policies of EU and slow economic revival in China will continue to create uncertainties for the exporters. To create further opportunities it is essential that we increase our value added exports. Also, new FTAs with important partners especially those in Latin America would be key for trade diversification. Overall although worries are there, the exporting community in India and across the world remains hopeful of 2024.