October 2025

Engineering exports conceded year-on-year decline in October 2025 after four consecutive months of growth

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

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October-2025 engineering exports hit peak growth for fiscal 2023-2024

Trade Flow	Export figures(in $ billion)				Growth (%)
	Mar-2024	Mar-2025	Apr-Mar 2022-23	Apr-Mar 2023-24	Mar-2025 over Mar-2024	Apr-Mar 2022-23 over Apr-Mar 2023-24
							Engineering exports	11.25	9.37	67.60	68.73	-16.71%	1.68%
							Overall merchandise exports	38.98	34.38	252.66	254.25	-11.82%	0.63%
Share of engineering (%)	28.87%	27.27%	26.75%	27.03%	---	---
Service Exports	34.41	38.52	216.45	237.55	11.94%	9.75%

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	8557.11	9513.72	11.18
May	9974.13	9889.09	-0.85
June	9386.21	9506.66	1.28
April-June	27917.46	28909.47	3.55
July	9162.17	10433.12	13.87
August	9437.14	9900.7	4.91
September	9826.24	10113.15	2.92
July-September	28425.55	30446.97	7.11
October	11253.08	9372.67	-16.71
April- October	67596.09	68729.1	1.68

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-October 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-2024	Mar-2025	Growth (%)	April-October 2022-23	April-October 2023-24	Growth (%)
U S A	1630.93	1394.74	-14.48%	10925.78	11436.22	4.67%
U ARAB EMTS	826.24	667.01	-19.27%	4735.46	4380.75	-7.49%
SAUDI ARAB	379.91	442.16	16.38%	2992.88	2720.19	-9.11%
U K	319.54	341.04	6.73%	2264.06	2654	17.22%
GERMANY	396.95	338.67	-14.68%	2490.49	2799.11	12.39%
SINGAPORE	1249.58	328.19	-73.74%	3210.12	2407.8	-24.99%
CHINA P RP	220.82	253.65	14.87%	1563.88	1643.66	5.1%
SOUTH AFRICA	215.32	245.37	13.96%	1388.62	1672.02	20.41%
KOREA RP	268.5	241.67	-9.99%	1555.13	1691.22	8.75%
MEXICO	251.47	238.14	-5.3%	2145.05	1898.1	-11.51%
ITALY	335.1	225.14	-32.81%	1825.51	1899.96	4.08%
VIETNAM SOC REP	150.78	215.24	42.75%	854.59	995.6	16.5%
FRANCE	248.21	203.3	-18.09%	1407.34	1302.91	-7.42%
THAILAND	173.27	192.63	11.18%	1174.54	1284.34	9.35%
BRAZIL	219.87	192.57	-12.42%	1325.9	1470.16	10.88%
JAPAN	198.02	191.51	-3.29%	1364.6	1498.82	9.84%
NEPAL	201.3	158.54	-21.24%	1305.8	1344.71	2.98%
NETHERLAND	149.12	152.25	2.1%	1101.63	1252.42	13.69%
SPAIN	111.5	146.94	31.79%	807.89	977	20.93%
TURKEY	250.16	141.55	-43.42%	1960.04	1134.71	-42.11%
BELGIUM	123.69	141.4	14.32%	839.91	1054.49	25.55%
AUSTRALIA	115.37	141.22	22.41%	717.25	872.57	21.65%
BANGLADESH PR	172.38	139.03	-19.35%	1197.27	1153.94	-3.62%
SRI LANKA DSR	89.38	128.42	43.67%	591.28	844.33	42.8%
RUSSIA	123.09	116.61	-5.27%	736.51	706.85	-4.03%
Total engineering exports to top 25 countries	8420.51	6976.99	-17.14%	50481.52	51095.86	1.22%
Total engineering exports	11253.08	9372.67	-16.71%	67596.09	68729.1	1.68%

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-October 2022-2023

(US$ million)

Regions	Mar-2024	Mar-2025	Growth (%)	April-October 2022-23	April-October 2023-24	Growth (%)
NORTH AMERICA	1995.83	1731.32	-13.25%	13792.35	14104.98	2.27%
EUROPEAN UNION	1951.97	1600.48	-18.01%	11681.75	12319.98	5.46%
WANA	1733.4	1586.9	-8.45%	10852.73	10262.65	-5.44%
ASEAN	1964.59	1023.67	-47.89%	7959.27	7103.3	-10.75%
SSA( Sub Saharan Africa)	753.65	797.68	5.84%	4701.9	5548.94	18.01%
N E ASIA	777.78	783.83	0.78%	5063.12	5505.51	8.74%
LATIN AMERICA	582.55	539.29	-7.43%	3519.81	4084.61	16.05%
OTHER EUROPE	621.94	521.64	-16.13%	4514.79	4065.26	-9.96%
SOUTH ASIA	569.14	474.24	-16.67%	3621.04	3726.45	2.91%
OCEANIA	125.07	153.66	22.85%	816.03	961.19	17.79%
CIS	170.48	146.57	-14.03%	1051.07	949.37	-9.68%
OTHERS	6.66	2.88	-56.79%	22.21	86.33	288.71%

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	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
IRON AND STEEL	826.61	842.18	1.88%	5439.97	5747.49	5.65%
PRODUCTS OF IRON AND STEEL	913.63	807.82	-11.58%	5721.89	6011.27	5.06%
Sub Total	1740.24	1649.99	-5%	11161.86	11758.76	5%

Source : DGCI&S

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

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
Aluminium and products made of Aluminium	637.7	561.64	-11.93%	3948.47	3684.47	-6.69%
Copper and products made of copper	253.9	325.23	28.09%	1306.4	1621.4	24.11%
Lead and products made of Lead	74.5	114.72	53.98%	496.03	678.64	36.81%
Nickel and products made of Nickel	19.78	16.52	-16.49%	107.48	105.58	-1.77%
Other Non Ferrous Metals and their products	78.83	76.58	-2.85%	503.52	594.05	17.98%
Tin and products made of Tin	1.56	3.82	144.38%	12.86	20.2	57.12%
Zinc and products made of zinc	78.6	96.82	23.18%	426.04	426.54	0.12%
Sub Total	1144.89	1195.34	4%	6800.8	7130.88	5%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	180.13	174.62	-3.05%	1095.22	1269.49	15.91%
IC Engines and Parts	364.42	309.25	-15.14%	2211.32	2431.03	9.94%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	731.04	729.28	-0.24%	4798.8	5176.08	7.86%
Machine Tools	71.85	70.85	-1.4%	464.87	542.21	16.64%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	244.33	243.3	-0.42%	1607.56	1792.39	11.5%
Nuclear Reactors, Industrial Boilers and Parts	77.84	70.01	-10.07%	487.69	538.71	10.46%
Pumps of all types	145.06	134.27	-7.44%	904.69	925.7	2.32%
Sub Total	1814.68	1731.58	-4.58%	11570.15	12675.62	9.55%

Source : DGCI&S

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

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
Electric Machinery and Equipment	1258.59	1136.87	-9.67%	8232.28	8868.08	7.72%

Source : DGCI&S

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

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
AUTO COMPONENTS/PARTS	718.119	626.541	-12.75%	4811.239	5014.613	4.23%
AUTO TYRES AND TUBES	257.112	244.544	-4.89%	1770.778	1818.287	2.68%
Motor Vehicle/cars	775.145	836.247	7.88%	5172.862	6235.194	20.54%
Two and Three Wheelers	285.666	309.438	8.32%	1830.325	2200.75	20.24%
Sub Total	2036.043	2016.77	-0.95%	13585.204	15268.844	12.39%

Source : DGCI&S

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

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
Aircrafts, Spacecrafts and Parts	732.49	138.48	-81.09%	3721.91	938.26	28.09%
Ships, Boats and Floating Structures	1092.11	202.23	-81.48%	3263.15	2073.71	89.88%
Sub Total	1824.6	340.71	-81.33%	6985.06	3011.97	-56.88%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	October-2024	October-2025	Growth	April-October 2022-23	April-October 2023-24	Growth
BICYCLE AND PARTS	35.83	33.3	-7.07%	224.75	270.98	20.57%
Hand Tools, Cutting Tools and Implements made of Metals	96.9	76.85	-20.69%	600.84	602.98	0.36%
OFFICE EQUIPMENTS	30.94	30.76	-0.61%	171.73	228.98	33.33%
OTHER CONSTRUCTION MACHINERY	258.33	271.24	5%	1785.22	1983	11.08%
PRIME MICA AND MICA PRODUCTS	2.55	2.61	2.2%	17.51	18.82	7.48%
Railway Transport and Parts	44.19	30.6	-30.75%	197.87	283.39	43.22%
PROJECT GOODS	0.39	0.12	-68.81%	1.53	0.84	-45.2%
OTHR RUBBER PRODCT EXCPT FOOTW	158.45	150.01	-5.33%	1034.35	1096.27	5.99%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-October 2022-23	April-October 2023-24	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	1974.65	2204.17	12%
	U ARAB EMTS	823.69	865.57	5%
	ITALY	852.06	819.65	-4%
	BELGIUM	382.79	528.7	38%
	U K	521.85	476.71	-9%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	U S A	835.41	979.19	17%
	SAUDI ARAB	421.1	648.39	54%
	KOREA RP	560.19	613.53	10%
	CHINA P RP	373.82	485.34	30%
	VIETNAM SOC REP	234.06	380.15	62%
Industrial Machinery
	U S A	2410.6	2540.75	5%
	U ARAB EMTS	553.31	732.95	32%
	GERMANY	537.78	567.98	6%
	CHINA P RP	500.37	514.91	3%
	THAILAND	457.37	467.95	2%
Electrical Machinery
	U S A	1601.55	1813.15	13%
	U K	614.74	890.12	45%
	SINGAPORE	920.62	873.55	-5%
	GERMANY	536.53	625.73	17%
	KOREA RP	441.95	535.82	21%
Automobiles
	U S A	1399.98	1307.54	-7%
	SOUTH AFRICA	905.09	1135.99	26%
	MEXICO	1118.76	1101.32	-2%
	SAUDI ARAB	982.48	975.27	-1%
	U ARAB EMTS	634.38	806.84	27%
Aircrafts and Spacecraft parts and products
	U S A	254.6	279.09	10%
	FRANCE	416.81	167.3	-60%
	U K	87.1	105.8	21%
	GERMANY	43.39	54.37	25%
	SINGAPORE	52.13	50.17	-4%
Ships Boats and Floating products and parts
	SINGAPORE	1586.49	777.44	-51%
	U ARAB EMTS	780.41	722.43	-7%
	SRI LANKA DSR	126.38	131.3	4%
	INDONESIA	262.28	99.43	-62%
	OMAN	9.49	65.94	595%
Project Goods
	U S A	0.32	0.22	-31%
	OMAN	0	0.1	4707%
	U K	0	0.07	11994%
	NIGERIA	0.02	0.06	205%
	FRANCE	0.03	0.06	92%
Other Rubber Product Except Footwear
	U S A	235.78	237.19	1%
	GERMANY	66.79	79.21	19%
	U ARAB EMTS	43.79	44.85	2%
	CHINA P RP	36.46	43.42	19%
	NETHERLAND	37.33	35.39	-5%
Other engineering products
	U S A	520.6	607.63	17%
	U ARAB EMTS	171.85	203.78	19%
	U K	181.71	199.2	10%
	GERMANY	83.45	129.72	55%
	SOUTH AFRICA	90.68	120.93	33%

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-March 2025-26

(US$ million)

Top States	Cumulative Export April-March 2025-26	Share %	Remark
Maharashtra	19221	27.7%	91.5% share covered by top 12 states
Tamil Nadu	13642.2	19.66%
Gujarat	10035.3	14.46%
Delhi	4108.4	5.92%
Karnataka	3858.1	5.56%
Haryana	2971.3	4.28%
Odisha	2661	3.84%
West Bengal	2645.5	3.81%
Andhra Pradesh	2406	3.47%
Uttar Pradesh	1977	2.85%
Punjab	1222.2	1.76%
Rajasthan	933.9	1.35%
Telangana	835.6	1.2%
Bihar	770.8	1.11%
Kerala	731.4	1.05%
Goa	562.1	0.81%
Madhya Pradesh	466.4	0.67%
Uttarakhand	290.4	0.42%
Assam	31.1	0.04%
Puducherry	11	0.02%
Himachal Pradesh	2.3	0%
Others	2.1	0%
Jammu & Kashmir	0	0%
Chhattisgarh	0	0%
Meghalaya	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 Mar-2025

Table 7: Region wise exports from India till Mar-2025

Value in US$ million

Region	Apr-Mar 2022-23($Mn)	Apr-Mar 2023-24 ($Mn)	Growth %
WESTERN REGION	27729.6	30284.8	9.21%
NORTHERN REGION	11581.8	11505.5	-0.66%
Others	0	2.1	0%
SOUTHERN REGION	23191.2	21484.3	-7.36%
EASTERN REGION	5824.6	6108.4	4.87%
Grand Total	68327.2	69385.1	1.55%

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

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	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

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	2023-24	2024-25
April	82.02	83.41	1.69	Depreciation	0.49	Depreciation
May	82.34	83.39	1.28	Depreciation	-0.02	Appreciation
June	82.23	83.47	1.51	Depreciation	0.10	Depreciation
July	82.15	83.59	1.75	Depreciation	0.14	Depreciation
August	82.79	83.89	1.33	Depreciation	0.36	Depreciation
September	83.05	83.81	0.92	Depreciation	-0.10	Depreciation
October	83.24	84.02	0.94	Depreciation	0.25	Depreciation
November	83.30	84.36	1.27	Depreciation	0.40	Depreciation
December	83.28	84.99	2.05	Depreciation	0.75	Depreciation
January	83.14	86.27	3.76	Depreciation	1.51	Depreciation
February	82.96	87.05	4.93	Depreciation	0.90	Depreciation
March	83.00	86.64	4.39	Depreciation	-0.47	Appreciation

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	July	August	September	Octomber
Engineering Export	9.5	9.9	9.5	10.4	9.9	10.1	9.4
Engineering Import	13.4	13.8	11.5	14.0	13.2	13.4	13.8
Trade Balance	-3.9	-3.9	-2.0	-3.6	-3.3	-3.3	-4.4

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.