March 2026

Engineering exports achieved its all-time high growth for the second straight fiscal year 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

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March-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	10.82	10.94	116.75	122.43	1.13%	4.86%
							Overall merchandise exports	42.05	38.92	437.70	441.78	-7.44%	0.93%
Share of engineering (%)	25.73%	28.11%	26.67%	27.71%	---	---
Service Exports	35.63	35.20	387.55	418.31	-1.21%	7.94%

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
November	8897.84	11012.20	23.76
December	10843.35	10981.94	1.28
October-December	30994.27	31369.25	1.21
January	9424.17	10401.80	10.37
February	9174.86	10358.70	12.9
March	10817.86	10939.88	1.13
January-March	29416.89	31698.69	7.76
April - March	116754.17	122431.46	4.86

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-March 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-March 2022-23	April-March 2023-24	Growth (%)
U S A	1886.8	1831.36	-2.94%	19157.31	19603.31	2.33%
SINGAPORE	334.63	561.72	67.86%	4469.33	4501.89	0.73%
CHINA P RP	216.07	456.98	111.5%	2667.47	3531.09	32.38%
GERMANY	402.69	456.85	13.45%	4337.14	4968.54	14.56%
U K	429.07	443.14	3.28%	4013.22	4744.86	18.23%
MEXICO	314.26	304.26	-3.18%	3536.02	3384.43	-4.29%
SOUTH AFRICA	225.55	279.54	23.94%	2517.98	2895.27	14.98%
ITALY	261.77	278.65	6.45%	2994.04	3472.74	15.99%
VIETNAM SOC REP	139.21	264.43	89.96%	1435.26	2052.41	43%
JAPAN	211.39	255.01	20.63%	2438.09	2654.09	8.86%
SAUDI ARAB	450.57	247.72	-45.02%	5635.38	4892.99	-13.17%
KOREA RP	262.14	244.36	-6.78%	2597.12	3030.9	16.7%
U ARAB EMTS	714.82	237.4	-66.79%	8277.5	7457.78	-9.9%
MALAYSIA	127.23	233.8	83.75%	1458.72	1686.55	15.62%
BRAZIL	216.12	227.1	5.08%	2238	2497.74	11.61%
FRANCE	206.87	223.65	8.11%	2496.03	2346.44	-5.99%
NEPAL	218.07	221.77	1.7%	2252.03	2412.87	7.14%
NETHERLAND	172.66	184.82	7.04%	1905.41	2226.82	16.87%
TURKEY	253.03	181.6	-28.23%	3044.6	1959.22	-35.65%
THAILAND	181.69	166.46	-8.38%	2005.25	2140.29	6.73%
SRI LANKA DSR	119.2	164.55	38.05%	1166.96	1765.37	51.28%
BANGLADESH PR	214.2	158.3	-26.1%	2187.61	1919.79	-12.24%
BELGIUM	146.6	158.05	7.81%	1400.94	1753.91	25.2%
SPAIN	112.64	156.69	39.11%	1386.54	1792.16	29.25%
AUSTRALIA	137.14	145.88	6.38%	1239.48	1565.16	26.28%
Total engineering exports to top 25 countries	7954.45	8084.12	1.63%	86857.44	91256.62	5.06%
Total engineering exports	10817.86	10939.88	1.13%	116754.17	122431.46	4.86%

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-March 2022-2023

(US$ million)

Regions	Mar-2025	Mar-2026	Growth (%)	April-March 2022-23	April-March 2023-24	Growth (%)
NORTH AMERICA	2315.24	2253.92	-2.65%	23920.41	24379.84	1.92%
EUROPEAN UNION	1769.67	1868.7	5.6%	20058.77	21793.04	8.65%
ASEAN	992.03	1493.7	50.57%	12245.43	13120.71	7.15%
N E ASIA	848.18	1094.4	29.03%	8768.11	10432.74	18.99%
SSA( Sub Saharan Africa)	879.5	1043.32	18.63%	8759.86	10101.92	15.32%
WANA	1751.92	864.29	-50.67%	19503.03	17938.41	-8.02%
LATIN AMERICA	601.87	729.92	21.27%	6188.08	7111.92	14.93%
OTHER EUROPE	724.93	676.84	-6.63%	7553.99	7217.28	-4.46%
SOUTH ASIA	612.75	598.29	-2.36%	6494.01	6742.84	3.83%
OCEANIA	146.51	154	5.11%	1378.54	1712.08	24.19%
CIS	164.39	148.28	-9.8%	1813.84	1706.87	-5.9%
OTHERS	10.81	1.96	-81.87%	69.99	161.55	130.81%

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	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
IRON AND STEEL	810.1	901.8	11.32%	9251.07	10316.57	11.52%
PRODUCTS OF IRON AND STEEL	981.27	814.25	-17.02%	10116.83	10362.53	2.43%
Sub Total	1791.36	1716.06	-4%	19367.89	20679.1	7%

Source : DGCI&S

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

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
Aluminium and products made of Aluminium	654.89	699.98	6.88%	6855.74	7062.97	3.02%
Copper and products made of copper	205.92	469.02	127.77%	2320.57	3694.48	59.21%
Lead and products made of Lead	108.93	104.51	-4.05%	945.66	1268.68	34.16%
Nickel and products made of Nickel	21.05	20.7	-1.65%	190.43	188.65	-0.94%
Other Non Ferrous Metals and their products	86.25	99.89	15.82%	870.75	1046.02	20.13%
Tin and products made of Tin	3.24	7.72	138.39%	22.82	50.8	122.62%
Zinc and products made of zinc	64.56	109.78	70.04%	740.49	878.72	18.67%
Sub Total	1144.83	1511.61	32%	11946.46	14190.3	19%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	220.24	258.79	17.51%	1964.54	2311.35	17.65%
IC Engines and Parts	396.01	344.81	-12.93%	3881.86	4115.94	6.03%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	904.53	786.13	-13.09%	8362.07	9024.65	7.92%
Machine Tools	83.69	74.73	-10.7%	808.55	897.56	11.01%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	278.34	277.59	-0.27%	2837.07	3114.65	9.78%
Nuclear Reactors, Industrial Boilers and Parts	101.44	103.61	2.14%	855.52	1035.86	21.08%
Pumps of all types	142.49	131.9	-7.43%	1550.08	1632.17	5.3%
Sub Total	2126.75	1977.57	-7.01%	20259.7	22132.18	9.24%

Source : DGCI&S

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

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
Electric Machinery and Equipment	1387.22	1335.36	-3.74%	14380.13	15362.75	6.83%

Source : DGCI&S

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

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
AUTO COMPONENTS/PARTS	784.699	733.228	-6.56%	8184.506	8564.328	4.64%
AUTO TYRES AND TUBES	293.694	283.332	-3.53%	3075.17	3199.749	4.05%
Motor Vehicle/cars	911.059	993.3	9.03%	9003.994	11086.703	23.13%
Two and Three Wheelers	303.738	383.233	26.17%	3206.615	3982.885	24.21%
Sub Total	2293.191	2393.095	4.36%	23470.285	26833.666	14.33%

Source : DGCI&S

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

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
Aircrafts, Spacecrafts and Parts	233.04	164.85	-29.26%	6963.73	1664.25	614.13%
Ships, Boats and Floating Structures	254	381.04	50.02%	4295.55	4110.73	1518.4%
Sub Total	487.04	545.9	12.08%	11259.28	5774.98	-48.71%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	March-2025	March-2026	Growth	April-March 2022-23	April-March 2023-24	Growth
BICYCLE AND PARTS	46.65	42.53	-8.83%	411.26	473.91	15.23%
Hand Tools, Cutting Tools and Implements made of Metals	98.79	88.44	-10.48%	1040.51	1022.37	-1.74%
Medical and Scientific Instruments	311.68	255.2	-18.12%	2935.16	2859.16	-2.59%
OFFICE EQUIPMENTS	31.68	30.24	-4.55%	288	394.76	37.07%
OTHER CONSTRUCTION MACHINERY	302.65	317.89	5.03%	3028.77	3624.05	19.65%
OTHER MISC. ITEMS	488.91	434.67	-11.09%	5112.71	5605.42	9.64%
PRIME MICA AND MICA PRODUCTS	3.56	2.73	-23.47%	31.67	29.76	-6.01%
Railway Transport and Parts	28.1	43.58	55.08%	357.12	504.11	41.16%
PROJECT GOODS	0.86	0.05	-93.94%	3.17	1.78	-43.78%
OTHR RUBBER PRODCT EXCPT FOOTW	171.63	164.54	-4.13%	1779.1	1870.59	5.14%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-March 2022-23	April-March 2023-24	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	3692.8	3746.21	1%
	ITALY	1333.66	1506.89	13%
	U ARAB EMTS	1564.63	1448.62	-7%
	U K	868.1	893.41	3%
	NEPAL	896.58	841.58	-6%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	U S A	1533.95	1796.38	17%
	SAUDI ARAB	768.34	1312.25	71%
	KOREA RP	986.66	1301.02	32%
	CHINA P RP	619.47	1226.45	98%
	VIETNAM SOC REP	427.35	707.7	66%
Industrial Machinery
	U S A	4223.02	4385.32	4%
	U ARAB EMTS	1012.6	1265.41	25%
	GERMANY	899.68	979.42	9%
	CHINA P RP	851.95	946.44	11%
	SAUDI ARAB	681.11	753.19	11%
Electrical Machinery
	U S A	2722.74	2958.74	9%
	SINGAPORE	1526.07	1592.89	4%
	U K	1213.44	1467.24	21%
	GERMANY	950.51	1098.09	16%
	KOREA RP	683.88	784.06	15%
Automobiles
	U S A	2408.08	2285.14	-5%
	MEXICO	1832.48	1885.92	3%
	SOUTH AFRICA	1620.27	1875.09	16%
	SAUDI ARAB	1661.54	1610.32	-3%
	U ARAB EMTS	1132.24	1279.99	13%
Aircrafts and Spacecraft parts and products
	U S A	456.68	516.4	13%
	FRANCE	747.18	301.37	-60%
	U K	154.86	186.38	20%
	GERMANY	82.39	96.94	18%
	SINGAPORE	78.1	69.6	-11%
Ships Boats and Floating products and parts
	SINGAPORE	1812.55	1407.44	-22%
	U ARAB EMTS	1107.2	1314	19%
	SRI LANKA DSR	269.84	334.46	24%
	OMAN	10.37	176.38	1600%
	CHINA P RP	0.01	161.14	1332714%
Project Goods
	U S A	0.44	0.43	-3%
	FRANCE	0.03	0.28	785%
	U K	0.01	0.16	2345%
	NIGERIA	0.03	0.12	262%
	OMAN	0.01	0.1	1339%
Other Rubber Product Except Footwear
	U S A	406.14	390.02	-4%
	GERMANY	112.07	137.26	22%
	U ARAB EMTS	76.26	77.81	2%
	CHINA P RP	65.95	74.68	13%
	NETHERLAND	67.25	65.35	-3%
Other engineering products
	U S A	3007.93	3153.01	5%
	GERMANY	751.8	765.21	2%
	U ARAB EMTS	609.89	732.42	20%
	U K	607.54	689.58	14%
	BRAZIL	364.94	406.16	11%

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	25061.2	20.47%	91.5% share covered by top 12 states
Tamil Nadu	20397.4	16.66%
Gujarat	18150.4	14.82%
Karnataka	9598	7.84%
Haryana	8898.3	7.27%
Odisha	6376.1	5.21%
Uttar Pradesh	4511.6	3.69%
Andhra Pradesh	4333.3	3.54%
Delhi	4068.5	3.32%
West Bengal	3645	2.98%
Rajasthan	3554	2.9%
Punjab	3038.9	2.48%
Telangana	2512.3	2.05%
Madhya Pradesh	2068	1.69%
DADRA,NH,DAMAN,DIU	1632	1.33%
Kerala	1102.8	0.9%
JHARKHAND	891.1	0.73%
Chhattisgarh	797	0.65%
Uttarakhand	593.6	0.48%
Goa	550.6	0.45%
Puducherry	181.9	0.15%
Himachal Pradesh	177.1	0.14%
Bihar	136.4	0.11%
CHANDIGARH	69.2	0.06%
Jammu & Kashmir	41.2	0.03%
Assam	31.3	0.03%
TRIPURA	9.4	0.01%
MANIPUR	2.2	0%
SIKKIM	1.7	0%
ARUNACHAL PRADESH	0.7	0%
Meghalaya	0.1	0%
LAKSHADWEEP	0	0%
ANDAMAN AND NICOBAR ISLANDS	0	0%
MIZORAM	0	0%
LADAKH	0	0%
Others	0	0%
NAGALAND	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-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 %
WESTERN REGION	42803.2	47462.2	10.88%
NORTHERN REGION	24533.3	24952.4	1.71%
Others	4.8	0	-100%
SOUTHERN REGION	38322	38125.7	-0.51%
EASTERN REGION	11090.7	11891	7.22%
Grand Total	116754	122431.3	4.86%

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

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
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

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	October	November	December	January	February	March
Engineering Export	9.5	9.9	9.5	10.4	9.9	10.1	9.4	11.0	11.0	10.4	10.4	10.9
Engineering Import	13.4	13.8	11.5	14.0	13.2	13.4	13.8	13.5	14.0	14.0	12.9	13.3
Trade Balance	-3.9	-3.9	-2.0	-3.6	-3.3	-3.3	-4.4	-2.5	-3.0	-3.6	-2.5	-2.4

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.