June 2026

Engineering exports continued to grow in 2026-27 after achieving record high in 2025-26

Therefore, the FTAs with UAE and Australia can be deemed effective
In fact, March 2024 recorded positive Y-o-Y growth for almost all regions including North America, EU, WANA, ASEAN, NE ASIA, CIS and South Asia
The revival in exports to Europe despite the logistics issues including the Red Sea Crisis is 
a positive observation from the present data
The decline in cumulative engineering exports to our neighbouring countries was mainly due to forex shortages and liquidity crunch
Decline in exports was also noticed in Latin America and Oceania regions in March 2024
The decline in Latin America can be attributed to high transportation cost and high tariff structure faced by India due to lack of any comprehensive trade agreement
Overall although Indian engineering exports failed to achieve the government set target of USD 122.8 billion in FY 2023-24, it performed well given the weak global trade trends, dwindling demand, forex crisis and geopolitical conflicts
According to the Quick Estimates of Department of Commerce, Government of India, share of engineering exports in India’s total merchandise exports during fiscal 2023-24 increased to 25.01 percent from 23.73 percent in 2022-23.

Monthly Trend

Highlights

Product Panels

Impact of Exchange Rate

Conclude

Download PDF

June-2026 engineering exports hit peak growth for fiscal 2023-2024

Trade Flow	Export figures(in $ billion)				Growth (%)
	Mar-2025	Mar-2026	Apr-Mar 2022-23	Apr-Mar 2023-24	Mar-2026 over Mar-2025	Apr-Mar 2022-23 over Apr-Mar 2023-24
							Engineering exports	9.51	11.48	28.91	34.14	20.74%	18.09%
							Overall Merchandise exports	34.98	40.41	111.57	129.32	15.54%	15.92%
Share of engineering (%)	27.18%	28.40%	25.92%	26.40%	---	---
Service Exports	32.11	33.03	97.41	103.41	2.87%	6.16%

Source : Compiled from data by DGCI&S and Quick Estimates published by the Government 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	9515.77	10351.01	8.78
May	9890.43	12311.33	24.48
June	9506.71	11478.69	20.74
April-June	28912.91	34143.99	18.09

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-June 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-2025	Mar-2026	Growth (%)	April-June 2022-23	April-June 2023-24	Growth (%)
U S A	1738.94	1949.07	12.08%	5136.35	5589.26	8.82%
SINGAPORE	371.85	545.87	46.8%	1236.88	1204.08	-2.65%
U ARAB EMTS	630.65	448.78	-28.84%	1854.23	2028.46	9.4%
GERMANY	394.94	448.16	13.48%	1159.41	1334.02	15.06%
U K	413.32	376.57	-8.89%	1137.07	1349.09	18.65%
CHINA P RP	208.14	361.47	73.67%	581.22	1000.65	72.17%
SAUDI ARAB	364.79	324.65	-11%	1096.25	1056.78	-3.6%
MEXICO	259.66	310.01	19.39%	785.8	933.24	18.76%
JAPAN	190.28	300.4	57.87%	636.68	729.52	14.58%
SOUTH AFRICA	232.22	270.22	16.36%	619.76	819.85	32.28%
OMAN	49.77	258.97	420.3%	204.67	459.86	124.68%
FRANCE	185.8	255.96	37.76%	538.28	682.33	26.76%
KOREA RP	241.94	245.55	1.49%	715.14	884.24	23.65%
ITALY	240.94	239.66	-0.53%	784.03	774.86	-1.17%
VIETNAM SOC REP	110.64	236.38	113.65%	344.52	616.29	78.88%
NEPAL	183.4	217.84	18.78%	617.93	685.94	11.01%
EGYPT A RP	90.33	205	126.95%	219.02	415.16	89.56%
NETHERLAND	182.92	203.3	11.14%	553.62	599.48	8.28%
MALAYSIA	79.87	195.83	145.18%	271.24	679.95	150.68%
THAILAND	176.65	194.74	10.24%	526.98	520.3	-1.27%
SPAIN	104.84	193.89	84.94%	349.1	518.89	48.63%
BRAZIL	203.41	188.8	-7.18%	631.15	616.99	-2.24%
SRI LANKA DSR	149.12	188.09	26.13%	296.45	848.23	186.13%
INDONESIA	108.88	178.85	64.27%	404.34	518.09	28.13%
TURKEY	148.03	158.5	7.07%	516.86	511.59	-1.02%
Total engineering exports to top 25 countries	7061.33	8496.53	20.32%	21216.98	25377.17	19.61%
Total engineering exports	9506.71	11478.69	20.74%	28912.91	34143.99	18.09%

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-June 2022-2023

(US$ million)

Regions	Mar-2025	Mar-2026	Growth (%)	April-June 2022-23	April-June 2023-24	Growth (%)
NORTH AMERICA	2108.14	2408.71	14.26%	6244.12	6937.16	11.1%
EUROPEAN UNION	1662.77	1996.62	20.08%	5101.4	5736.63	12.45%
WANA	1404.61	1481.7	5.49%	4177.66	4644.69	11.18%
ASEAN	931.29	1445.5	55.21%	3098.4	3816.96	23.19%
N E ASIA	731.77	1036.63	41.66%	2228.11	2970.95	33.34%
SSA( Sub Saharan Africa)	733.24	946.99	29.15%	2186.01	2827.38	29.34%
LATIN AMERICA	577.18	652.63	13.07%	1736.91	1977.78	13.87%
SOUTH ASIA	541.72	627.34	15.81%	1595.21	2218.85	39.09%
OTHER EUROPE	593.85	578.13	-2.65%	1771.17	2055.28	16.04%
CIS	96.44	143.65	48.95%	339.92	407.63	19.92%
OCEANIA	112.32	139.62	24.31%	400.99	489.71	22.13%
OTHERS	13.38	21.16	58.14%	33	60.97	84.77%

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	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
IRON AND STEEL	770.62	1114.7	44.65%	2395.19	2942.99	22.87%
PRODUCTS OF IRON AND STEEL	840.48	854.53	1.67%	2488.34	2497.46	0.37%
Sub Total	1611.1	1969.23	22%	4883.53	5440.45	11%

Source : DGCI&S

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

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
Aluminium and products made of Aluminium	450.53	823.46	82.77%	1484.37	2311.02	55.69%
Copper and products made of copper	186.53	357.82	91.83%	559.79	1056.32	88.7%
Lead and products made of Lead	94.23	68.47	-27.34%	251.88	219.18	-12.98%
Nickel and products made of Nickel	12.42	16.38	31.85%	38.93	51.79	33.05%
Other Non Ferrous Metals and their products	88.91	85.02	-4.38%	258.22	303.58	17.56%
Tin and products made of Tin	2.21	7.83	254.75%	6.19	20.02	223.38%
Zinc and products made of zinc	44.97	60.54	34.62%	152.35	236.22	55.05%
Sub Total	879.81	1419.52	61%	2751.73	4198.13	53%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	185.39	206.87	11.59%	562.17	594.3	5.72%
IC Engines and Parts	347.94	344.18	-1.08%	1037.72	1027.47	-0.99%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	692.98	730.49	5.41%	2151.68	2231.14	3.69%
Machine Tools	67.27	71.41	6.14%	196.24	213.84	8.97%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	259.31	253.28	-2.33%	753.24	764.57	1.5%
Nuclear Reactors, Industrial Boilers and Parts	58.55	70.59	20.56%	237.57	261.49	10.07%
Pumps of all types	132.14	137.26	3.87%	380.11	407.34	7.16%
Sub Total	1743.59	1814.08	4.04%	5318.74	5500.15	3.41%

Source : DGCI&S

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

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
Electric Machinery and Equipment	1305.63	1719.33	31.69%	3799.36	4586.47	20.72%

Source : DGCI&S

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

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
AUTO COMPONENTS/PARTS	705.347	753.142	6.78%	2089.278	2229.761	6.72%
AUTO TYRES AND TUBES	261.029	278.704	6.77%	801.123	841.956	5.1%
Motor Vehicle/cars	817.136	985.682	20.63%	2499.186	2876.85	15.11%
Two and Three Wheelers	306.513	380.944	24.28%	868.604	1126.57	29.7%
Sub Total	2090.025	2398.472	14.76%	6258.191	7075.138	13.05%

Source : DGCI&S

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

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
Aircrafts, Spacecrafts and Parts	121.42	132.51	9.13%	386.51	479.83	295.17%
Ships, Boats and Floating Structures	398.61	532.54	33.6%	1299.17	2375.85	496.04%
Sub Total	520.03	665.06	27.89%	1685.68	2855.68	69.41%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	June-2025	June-2026	Growth	April-June 2022-23	April-June 2023-24	Growth
BICYCLE AND PARTS	35.29	38.7	9.67%	111.96	122.42	9.35%
Cranes, Lifts and Winches	94.49	84.12	-10.97%	269.9	268	-0.7%
Hand Tools, Cutting Tools and Implements made of Metals	84.68	91.23	7.73%	262.36	269.34	2.66%
Medical and Scientific Instruments	228.58	236.72	3.56%	705.54	730.22	3.5%
OFFICE EQUIPMENTS	32.78	21.67	-33.9%	89.01	84.09	-5.53%
OTHER CONSTRUCTION MACHINERY	254.61	317.18	24.57%	834.33	931.36	11.63%
OTHER MISC. ITEMS	432.95	483.37	11.64%	1371.51	1394.75	1.69%
PRIME MICA AND MICA PRODUCTS	2.55	2.27	-11.03%	8.87	7.85	-11.47%
Railway Transport and Parts	38.57	46.87	21.52%	101.83	189.68	86.28%
PROJECT GOODS	0.1	0.16	58.67%	0.21	0.45	114.69%
OTHR RUBBER PRODCT EXCPT FOOTW	151.91	170.7	12.37%	460.17	489.8	6.44%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-June 2022-23	April-June 2023-24	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	1015.87	1237.08	22%
	U ARAB EMTS	349.55	327.89	-6%
	NEPAL	221.57	256.1	16%
	U K	196.17	253.75	29%
	ITALY	315.51	231.14	-27%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	U S A	434.96	530.73	22%
	SAUDI ARAB	227.93	351.84	54%
	KOREA RP	272.93	330.11	21%
	CHINA P RP	109.33	307.33	181%
	VIETNAM SOC REP	111.35	174.62	57%
Industrial Machinery
	U S A	1157.4	1180.43	2%
	CHINA P RP	216.1	271.7	26%
	GERMANY	241.24	248.12	3%
	U ARAB EMTS	299.86	199.36	-34%
	SAUDI ARAB	176.81	191.52	8%
Electrical Machinery
	U S A	780.83	818.83	5%
	SINGAPORE	405.93	484.75	19%
	U K	429.24	371.27	-14%
	GERMANY	248.15	336.67	36%
	MALAYSIA	68.91	312.86	354%
Automobiles
	U S A	609.3	650.83	7%
	MEXICO	450.81	519.54	15%
	SOUTH AFRICA	413.51	477.73	16%
	JAPAN	256.24	275.55	8%
	GERMANY	194.61	263.92	36%
Aircrafts and Spacecraft parts and products
	U S A	112.13	147.78	32%
	FRANCE	58.84	71.78	22%
	MALDIVES	0.47	60.07	12702%
	U K	45.41	41.99	-8%
	MALAYSIA	14.97	21.76	45%
Ships Boats and Floating products and parts
	U ARAB EMTS	426.78	961.05	125%
	SINGAPORE	555.52	401.31	-28%
	SRI LANKA DSR	64.19	383.27	497%
	OMAN	54.31	171.49	216%
	EGYPT A RP	0	158.12	N/A
Project Goods
	SUDAN	0	0.1	N/A
	FRANCE	0.02	0.06	200%
	U S A	0.06	0.04	-31%
	BELGIUM	0	0.04	N/A
	ANGOLA	0	0.03	N/A
Other Rubber Product Except Footwear
	U S A	108.35	97.8	-10%
	GERMANY	30.46	32.64	7%
	CHINA P RP	19.98	24.05	20%
	THAILAND	11.71	18.5	58%
	NETHERLAND	15.3	16.64	9%
Other engineering products
	U S A	916.54	923.58	1%
	U K	176.29	208.88	18%
	GERMANY	188.09	191.57	2%
	U ARAB EMTS	191.6	138.87	-28%
	BRAZIL	99.5	112.95	14%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

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-January 2025-26

(US$ million)

Top States	Cumulative Export April-January 2025-26	Share %	Remark
Maharashtra	6524.311973	19.11%	91% share covered by top 12 states
Gujarat	5626.606081	16.48%
Tamil Nadu	5166.105267	15.13%
Karnataka	2769.413206	8.11%
Haryana	2370.44893	6.94%
Odisha	2288.584102	6.7%
Delhi	1394.027539	4.08%
Uttar Pradesh	1145.877684	3.36%
West Bengal	1133.837928	3.32%
Rajasthan	945.6756247	2.77%
Andhra Pradesh	888.5990952	2.6%
Punjab	740.7632028	2.17%
Telangana	652.1963902	1.91%
Madhya Pradesh	557.4668246	1.63%
DADRA,NH,DAMAN,DIU	515.0158295	1.51%
Uttarakhand	323.4599042	0.95%
Chhattisgarh	257.161232	0.75%
Kerala	247.2068967	0.72%
JHARKHAND	210.5132428	0.62%
Goa	194.9348358	0.57%
Bihar	65.78052402	0.19%
Puducherry	46.96387488	0.14%
Himachal Pradesh	45.85927123	0.13%
CHANDIGARH	16.89924042	0.05%
Assam	7.41979252	0.02%
MANIPUR	0.40222019	0%
SIKKIM	0.28147712	0%
Meghalaya	0.141775665	0%
TRIPURA	0.111067298	0%
ARUNACHAL PRADESH	0.077763319	0%
LADAKH	0.011522476	0%
LAKSHADWEEP	0.001873956	0%
NAGALAND	0	0%
MIZORAM	0	0%
ANDAMAN AND NICOBAR ISLANDS	0	0%
Jammu & Kashmir		0%
Others		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 Mar-2026

Table 7: Region wise exports from India till Mar-2026

Value in US$ million

Region	Apr-Mar 2022-23($Mn)	Apr-Mar 2023-24 ($Mn)	Growth %
SOUTHERN REGION	8987.86	9770.49	8.71%
EASTERN REGION	2674.79	3964.31	48.21%
WESTERN REGION	11126.73	13418.34	20.6%
NORTHERN REGION	6114.94	6983.02	14.2%
Grand Total	28904.31	34136.16	18.1%

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
April 2024	-4.49	3.9
May 2024	7.41	4.6
June 2024	10.27	N A
July 2024	3.66	4.6
August 2024	4.26	1.0
September 2024	9.44	3.9
October 2024	38.39	4.1
November 2024	13.72	5.5
December 2024	8.33	3.4
January 2025	7.46	5.5
February 2025	-8.64	2.9
April 2025	-3.92	3.0
May 2025	-0.80	2.6
June 2025	1.28	2.9
July 2025	13.86	5.4
August 2025	4.90	3.8
September 2025	2.93	4.8
October 2025	-16.72	1.8
November 2025	23.79	8.0
December 2026	1.29	8.4
January 2026	10.35	5.3
February 2026	12.91	6.0
March 2026	1.13	4.3
April 2026	8.78	6.2
May 2026	24.48	5.5

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 2025-26 vis-à-vis 2024-25

(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	2025-26	2026-27
April	85.56	93.55	9.34	Depreciation	0.85	Depreciation
May	85.19	95.60	12.22	Depreciation	2.19	Depreciation
June	85.90	94.97	10.56	Depreciation	-0.66	Appreciation

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 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	2024-25	2025-26
April	83.41	85.56	2.58	Depreciation	-1.25	Appreciation
May	83.39	85.19	2.16	Depreciation	-0.43	Appreciation
June	83.47	85.90	2.91	Depreciation	0.83	Depreciation
July	83.59	86.11	3.01	Depreciation	0.24	Depreciation
August	83.90	87.52	4.31	Depreciation	1.64	Depreciation
September	83.81	88.32	5.38	Depreciation	0.91	Depreciation
October	84.03	88.42	5.22	Depreciation	0.11	Depreciation
November	84.36	88.83	5.30	Depreciation	0.46	Depreciation
December	84.99	90.09	6.00	Depreciation	1.42	Depreciation
January	86.26	90.80	5.25	Depreciation	0.79	Depreciation
February	87.05	90.77	4.27	Depreciation	-0.03	Appreciation
March	86.64	92.76	7.06	Depreciation	2.19	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	April	May	June
Engineering Export	10.4	12.31	11.48
Engineering Import	14.4	14.36	14.19
Trade Balance	-4.0	-2.05	-2.71

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.