| Trade Flow | Export figures(in $ billion) | Growth (%) | ||||
|---|---|---|---|---|---|---|
| Mar-2023 | Mar-2024 | Apr-Mar 2022-23 | Apr-Mar 2023-24 | Mar-2024 over Mar-2023 | Apr-Mar 2022-23 over Apr-Mar 2023-24 | |
| Engineering exports | 9.30 | 9.99 | 18.25 | 18.5 | 7.39% | 1.57% |
| Overall merchandise exports | 34.95 | 38.13 | 69.57 | 73.12 | 9.10% | 5.10% |
| Share of engineering (%) | 9.10% | 5.10% | 26.61% | 26.19% | --- | --- |
| Service Exports | 26.99 | 30.16 | 52.77 | 60.49 | 11.75% | 14.63% |
Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India
| Trade Flow | Export in Mar-2023 | Export in Mar-2024 | Growth (%) | Exports in Apr-Mar 2022-23 | Exports in Apr-Mar 2023-24 | Growth (%) |
|---|---|---|---|---|---|---|
| Overall engineering exports | 9300.75 | 9988.43 | 7.39 | 18250.12 | 18536.35 | 1.57 |
| Engineering exports excluding Iron and Steel | 8070.75 | 9240.05 | 14.49 | 15692.99 | 16944.18 | 7.97 |
Source : DGCI&S, Govt. of India
US$ million
| Month | 2022-23 | 2023-24 | Growth (%) |
|---|---|---|---|
| April | 8949.36 | 8547.93 | -4.49 |
| May | 9300.75 | 9988.43 | 7.39 |
| April-May | 18250.12 | 18536.35 | 1.57 |
Source : DGCIS, Govt. of India
(US$ million)
| Countries | Mar-2023 | Mar-2024 | Growth (%) | April-May 2022-23 | April-May 2023-24 | Growth (%) |
|---|---|---|---|---|---|---|
| U S A | 1448.43 | 1656.87 | 14.39% | 2847.7 | 3074.85 | 7.98% |
| U ARAB EMTS | 566.62 | 811.35 | 43.19% | 927.14 | 1203.94 | 29.86% |
| SAUDI ARAB | 324.35 | 587.01 | 80.98% | 617.07 | 1022.76 | 65.75% |
| TURKEY | 222.04 | 457.51 | 106.05% | 496.55 | 676.71 | 36.28% |
| GERMANY | 350.74 | 352.92 | 0.62% | 703.86 | 676.82 | -3.84% |
| U K | 317.23 | 349.56 | 10.19% | 593.93 | 650.54 | 9.53% |
| MEXICO | 271.01 | 317.91 | 17.31% | 522.49 | 614.36 | 17.58% |
| SINGAPORE | 329.69 | 283.51 | -14% | 626.25 | 659.43 | 5.3% |
| ITALY | 439.18 | 253.97 | -42.17% | 837.78 | 563.74 | -32.71% |
| CHINA P RP | 193.47 | 218.63 | 13.01% | 376.71 | 429.09 | 13.9% |
| KOREA RP | 293.59 | 202.58 | -31% | 506.24 | 411.91 | -18.63% |
| BRAZIL | 169.01 | 199.87 | 18.26% | 343.28 | 365.44 | 6.45% |
| JAPAN | 119.96 | 197.64 | 64.75% | 298.13 | 371.3 | 24.54% |
| BANGLADESH PR | 172.94 | 179.89 | 4.02% | 372.78 | 328.08 | -11.99% |
| NEPAL | 208.02 | 174.48 | -16.12% | 422.5 | 346.24 | -18.05% |
| SOUTH AFRICA | 177.28 | 165.47 | -6.66% | 353.38 | 296.15 | -16.2% |
| THAILAND | 137.06 | 163.2 | 19.08% | 298.15 | 315.79 | 5.91% |
| INDONESIA | 531.84 | 153.44 | -71.15% | 818.8 | 272.23 | -66.75% |
| FRANCE | 191.81 | 152 | -20.76% | 374.26 | 304.89 | -18.54% |
| NETHERLAND | 189.71 | 141.83 | -25.24% | 401.19 | 279.58 | -30.31% |
| MALAYSIA | 68.37 | 134.21 | 96.3% | 184.52 | 227.93 | 23.53% |
| VIETNAM SOC REP | 93.31 | 129.37 | 38.64% | 205.88 | 245.83 | 19.4% |
| RUSSIA | 89.52 | 116.27 | 29.88% | 220.43 | 234.73 | 6.49% |
| SPAIN | 139.09 | 115.58 | -16.9% | 320.25 | 212.8 | -33.55% |
| KUWAIT | 30.18 | 114.12 | 278.15% | 61.26 | 136.61 | 122.99% |
| Total engineering exports to top 25 countries | 7074.45 | 7629.21 | 7.84% | 13730.53 | 13921.74 | 1.39% |
| Total engineering exports | 9300.75 | 9988.43 | 7.39% | 18250.12 | 18536.35 | 1.57% |
Source : DGCI&S
(US$ million)
| Regions | Mar-2023 | Mar-2024 | Growth (%) | April-May 2022-23 | April-May 2023-24 | Growth (%) |
|---|---|---|---|---|---|---|
| NORTH AMERICA | 1813.5 | 2075.26 | 14.43% | 3555.75 | 3901.14 | 9.71% |
| WANA | 1317.27 | 1903.96 | 44.54% | 2423.38 | 3045.05 | 25.65% |
| EUROPEAN UNION | 1906.46 | 1559.67 | -18.19% | 3828.21 | 3156.74 | -17.54% |
| ASEAN | 1229.1 | 927.26 | -24.56% | 2273.55 | 1948.9 | -14.28% |
| OTHER EUROPE | 566.91 | 869.39 | 53.35% | 1147.43 | 1448.8 | 26.26% |
| N E ASIA | 673.84 | 712.81 | 5.78% | 1307 | 1383.58 | 5.86% |
| SSA( Sub Saharan Africa) | 609.08 | 616.78 | 1.26% | 1249.04 | 1139.12 | -8.8% |
| LATIN AMERICA | 465.73 | 550.83 | 18.27% | 949.01 | 995.51 | 4.9% |
| SOUTH ASIA | 482.37 | 499.21 | 3.49% | 989.56 | 975.95 | -1.38% |
| CIS | 114.13 | 157.3 | 37.83% | 269.4 | 319.26 | 18.51% |
| OCEANIA | 120.31 | 114.58 | -4.76% | 253.74 | 220.08 | -13.27% |
| OTHERS | 2.05 | 1.38 | -32.45% | 4.04 | 2.23 | -44.8% |
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.
(US$ million)
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
| IRON AND STEEL | 1230.01 | 748.38 | -39.16% | 2557.13 | 1592.17 | -37.74% |
| PRODUCTS OF IRON AND STEEL | 760.17 | 820.5 | 7.94% | 1591.04 | 1551.37 | -2.49% |
| Sub Total | 1990.17 | 1568.87 | -21% | 4148.17 | 3143.54 | -24% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| Aluminium and products made of Aluminium | 665.14 | 618.74 | -6.98% | 1288.91 | 1148.31 | -10.91% |
| Copper and products made of copper | 179.99 | 159.38 | -11.45% | 373.84 | 287.8 | -23.02% |
| Lead and products made of Lead | 41.24 | 84.31 | 104.46% | 80.52 | 147.45 | 83.13% |
| Nickel and products made of Nickel | 16.56 | 12.09 | -27% | 30.16 | 25.33 | -16% |
| Other Non Ferrous Metals and their products | 54.95 | 68.59 | 24.84% | 116.76 | 129.42 | 10.84% |
| Tin and products made of Tin | 0.47 | 2.3 | 388.86% | 1.09 | 3.52 | 222.79% |
| Zinc and products made of zinc | 80.83 | 83.78 | 3.66% | 172.84 | 150.43 | -12.96% |
| Sub Total | 1039.18 | 1029.19 | -1% | 2064.11 | 1892.26 | -8% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor | 135.89 | 147.19 | 8.32% | 271.23 | 283.91 | 4.67% |
| IC Engines and Parts | 280.85 | 300.42 | 6.97% | 581 | 587.17 | 1.06% |
| Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc | 615.48 | 675.1 | 9.69% | 1277.69 | 1360.82 | 6.51% |
| Machine Tools | 56.96 | 68.49 | 20.23% | 123.3 | 128.08 | 3.88% |
| Machinery for ATMs, Injecting Moulding machinery, valves, etc | 200.94 | 232.93 | 15.92% | 409.96 | 439.22 | 7.14% |
| Nuclear Reactors, Industrial Boilers and Parts | 55.57 | 53.82 | -3.14% | 113.95 | 119.59 | 4.95% |
| Pumps of all types | 112.18 | 126.92 | 13.13% | 235.64 | 234.97 | -0.28% |
| Sub Total | 1457.87 | 1604.88 | 10.08% | 3012.76 | 3153.76 | 4.68% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| Electric Machinery and Equipment | 996.77 | 1136.35 | 14% | 1938.67 | 2167.99 | 11.83% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| AUTO COMPONENTS/PARTS | 604.751 | 709.277 | 17.28% | 1214.283 | 1314.505 | 8.25% |
| AUTO TYRES AND TUBES | 231.386 | 281.541 | 21.68% | 459.097 | 534.758 | 16.48% |
| Motor Vehicle/cars | 617.751 | 723.919 | 17.19% | 1294.263 | 1326.646 | 2.5% |
| Two and Three Wheelers | 213.061 | 268.863 | 26.19% | 417.309 | 517.544 | 24.02% |
| Sub Total | 1666.948 | 1983.6 | 19% | 3384.951 | 3693.453 | 9.11% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| Aircrafts, Spacecrafts and Parts | 111.43 | 855.02 | 667.33% | 216.99 | 1135.66 | 919.18% |
| Ships, Boats and Floating Structures | 812.39 | 523.09 | -35.61% | 1135.57 | 788.25 | -2.97% |
| Sub Total | 923.82 | 1378.12 | 49.18% | 1352.56 | 1923.91 | 42.24% |
Source : DGCI&S
US$ Million
| Product panels | May-2023 | May-2024 | Growth | April-May 2022-23 | April-May 2023-24 | Growth |
|---|---|---|---|---|---|---|
| BICYCLE AND PARTS | 31.05 | 33.84 | 8.99% | 60.56 | 61.79 | 2.03% |
| Hand Tools, Cutting Tools and Implements made of Metals | 72.98 | 83.06 | 13.81% | 151.04 | 160.63 | 6.35% |
| Medical and Scientific Instruments | 222.2 | 211.04 | -5.02% | 407.09 | 404.76 | -0.57% |
| OFFICE EQUIPMENTS | 27.99 | 24.03 | -14.14% | 58.35 | 43 | -26.31% |
| OTHER CONSTRUCTION MACHINERY | 237.13 | 265.4 | 11.92% | 457.22 | 508.32 | 11.18% |
| OTHER MISC. ITEMS | 399.88 | 404.88 | 1.25% | 753.1 | 852.5 | 13.2% |
| PRIME MICA AND MICA PRODUCTS | 3.3 | 2.62 | -20.56% | 7.21 | 4.86 | -32.59% |
| Railway Transport and Parts | 23.44 | 21.84 | -6.82% | 51.15 | 53 | 3.62% |
| PROJECT GOODS | 0.42 | 0.11 | -74.46% | 0.76 | 0.22 | -71.38% |
| OTHR RUBBER PRODCT EXCPT FOOTW | 138.88 | 148.29 | 6.77% | 269.07 | 285.18 | 5.99% |
Source : DGCI&S
(US$ million)
| Product panels | Top 5 nations | April-May 2022-23 | April-May 2023-24 | Growth (%) |
|---|---|---|---|---|
| Iron and Steel and Products made of Iron and Steel | ||||
| U S A | 581.06 | 532.39 | -8% | |
| ITALY | 499.52 | 312.3 | -37% | |
| U ARAB EMTS | 206.6 | 167.28 | -19% | |
| U K | 152.43 | 167 | 10% | |
| BELGIUM | 165.44 | 130.83 | -21% | |
| Non-Ferrous Metals and Products made of Non-Ferrous Metals | ||||
| U S A | 227.76 | 235.07 | 3% | |
| KOREA RP | 253.55 | 180.23 | -29% | |
| TURKEY | 16.44 | 119.37 | 626% | |
| SINGAPORE | 56.17 | 104.41 | 86% | |
| SAUDI ARAB | 195.11 | 95.82 | -51% | |
| Industrial Machinery | ||||
| U S A | 599.19 | 664.23 | 11% | |
| CHINA P RP | 126.8 | 161.25 | 27% | |
| GERMANY | 168.5 | 158.34 | -6% | |
| U ARAB EMTS | 125.23 | 144.29 | 15% | |
| THAILAND | 129.14 | 124.8 | -3% | |
| Electrical Machinery | ||||
| U S A | 408.22 | 455.25 | 12% | |
| SINGAPORE | 178.62 | 204.09 | 14% | |
| U K | 132.33 | 161.91 | 22% | |
| GERMANY | 125.48 | 121.19 | -3% | |
| KOREA RP | 46.11 | 90.94 | 97% | |
| Automobiles | ||||
| U S A | 388.17 | 403.69 | 4% | |
| MEXICO | 228.93 | 335.27 | 46% | |
| SAUDI ARAB | 182.79 | 257.29 | 41% | |
| TURKEY | 140.17 | 198.47 | 42% | |
| SOUTH AFRICA | 221.13 | 185.49 | -16% | |
| Aircrafts and Spacecraft parts and products | ||||
| SAUDI ARAB | 0.76 | 329.85 | 43578% | |
| U ARAB EMTS | 4.45 | 207.49 | 4558% | |
| TURKEY | 14.1 | 131.79 | 835% | |
| KUWAIT | 0 | 90.61 | 3393465% | |
| U S A | 69.28 | 73.13 | 6% | |
| Ships Boats and Floating products and parts | ||||
| U ARAB EMTS | 253.33 | 305.93 | 21% | |
| SINGAPORE | 254.35 | 234.8 | -8% | |
| U S A | 0.59 | 124.63 | 20894% | |
| SRI LANKA DSR | 37.69 | 33.92 | -10% | |
| NORWAY | 0 | 33.42 | N/A | |
| Project Goods | ||||
| CONGO P REP | 0 | 0.06 | N/A | |
| U S A | 0.04 | 0.06 | 55% | |
| TANZANIA REP | 0.17 | 0.02 | -87% | |
| U ARAB EMTS | 0.01 | 0.01 | 20% | |
| JAPAN | 0.18 | 0.01 | -93% | |
| Other Rubber Product Except Footwear | ||||
| U S A | 60.29 | 65.86 | 9% | |
| GERMANY | 19.05 | 19.38 | 2% | |
| CHINA P RP | 11.59 | 11.29 | -3% | |
| U ARAB EMTS | 9.04 | 10.39 | 15% | |
| NETHERLAND | 7.82 | 9.46 | 21% | |
| Other engineering products | ||||
| U S A | 459.65 | 457.37 | -0% | |
| PHILIPPINES | 10.65 | 102.32 | 861% | |
| U K | 103.2 | 96.95 | -6% | |
| GERMANY | 88.65 | 94.12 | 6% | |
| SAUDI ARAB | 49.82 | 88.41 | 77% |
Source : DGCI&S
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.
(US$ million)
| Top States | Cumulative Export April-May 2023-24 | Share % | Remark |
|---|---|---|---|
| Maharashtra | 3795.99 | 22.09% | 92.1% share covered by top 12 states |
| Tamil Nadu | 2868.15 | 16.69% | |
| Gujarat | 2375.93 | 13.83% | |
| Telangana | 1191.81 | 6.94% | |
| Karnataka | 1076.82 | 6.27% | |
| Odisha | 969.59 | 5.64% | |
| Andhra Pradesh | 850.94 | 4.95% | |
| Uttar Pradesh | 704.81 | 4.1% | |
| Haryana | 612.29 | 3.56% | |
| West Bengal | 525.41 | 3.06% | |
| Delhi | 424.91 | 2.47% | |
| Rajasthan | 422.03 | 2.46% | |
| Madhya Pradesh | 325.66 | 1.9% | |
| Punjab | 255.57 | 1.49% | |
| Daman & Diu And Dadra & Nagar Haveli | 201.21 | 1.17% | |
| Chhattisgarh | 136.49 | 0.79% | |
| Kerala | 124.59 | 0.73% | |
| Jharkhand | 123.18 | 0.72% | |
| Uttarakhand | 78.98 | 0.46% | |
| Goa | 50.11 | 0.29% | |
| Puducherry | 33.29 | 0.19% | |
| Bihar | 15.54 | 0.09% | |
| Himachal Pradesh | 10.66 | 0.06% | |
| Chandigarh | 3.89 | 0.02% | |
| Assam | 3.12 | 0.02% | |
| Jammu & Kashmir | 1.02 | 0.01% | |
| Manipur | 0.22 | 0% | |
| Sikkim | 0.22 | 0% | |
| Arunachal Pradesh | 0.21 | 0% | |
| Lakshadweep | 0.06 | 0% | |
| Nagaland | 0 | 0% | |
| Andaman & Nicobar | 0 | 0% | |
| Meghalaya | 0 | 0% | |
| Ladakh | 0 | 0% | |
| Mizoram | 0 | 0% | |
| Tripura | 0 | 0% |
Source : DGCI&S
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
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 | 3423.5 | 3567.4 | 4.2% | 6773.46 | 6748.9 | -0.36% |
| SOUTHERN REGION | 2953.5 | 3437.1 | 16.37% | 5461.58 | 6145.66 | 12.53% |
| EASTERN REGION | 1083.9 | 912.5 | -15.81% | 2205.06 | 1773.76 | -19.56% |
| NORTHERN REGION | 1849.2 | 629.8 | -65.94% | 3855.54 | 2514.38 | -34.79% |
| Grand Total | 9310.1 | 8546.8 | -8.2% | 18295.64 | 17182.7 | -6.08% |
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.
| 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 |
Source :Department of Commerce and CSO
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:
(Monthly Average Rate of FBIL has been considered)
Source : FBIL
(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 |
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.
(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
We now present the trend in two-way yearly trade for the engineering sector for the 2023-24 depicted in the table below:
(US$ million)
| Trade Flow | Apr | May |
|---|---|---|
| Engineering Export | 11034.8 | 10.0 |
| Engineering Import | 10985.6 | 12.9 |
| Trade Balance | -0.4 | -2.9 |
Source : DGCI&S
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.
Monthly Trend
Highlights
Product Panels
Impact of Exchange Rate
Conclude