India’s engineering exports soar to an all-time high of $116.67 billion in FY 2024–25

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March-2025 engineering exports hit peak growth for fiscal 2024-2025

Trade Flow Export figures(in $ billion) Growth (%)
May-2024 May-2025 Apr-May 2023-24 Apr-May 2024-25 May-2025 over May-2024 Apr-May 2023-24 over Apr-May 2024-25
Engineering exports 11.87 10.82 109.30 116.67 -3.92% 6.74%
Overall merchandise exports 41.69 41.97 437.07 437.42 0.66% 0.08%
Share of engineering (%) 27.02% 25.79% 25.01% 26.67% --- ---
Service Exports 30.01 31.64 341.06 383.51 5.43% 12.45%

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)

Observation: Excluding the export of iron and steel, engineering exports recorded a much higher growth both on a monthly as well as cumulative basis as shown in the table above. Exports of Iron and Steel conceded 39 percent year-on-year decline in May 2024 and around 38 percent year-on-year decline during Apr-May 2024-25.

Trade Flow Export in May-2024 Export in May-2025 Growth (%) Exports in Apr-May 2023-24 Exports in Apr-May 2024-25 Growth (%)
Overall engineering exports 11266.67 10824.55 -3.92 109300.95 116670.03 6.74
Engineering exports excluding Iron and Steel 10109.34 10014.45 -0.94 97441.59 107418.99 10.24

Source : DGCI&S, Govt. of India


Engineering Exports: Monthly Trend

The monthly engineering figures for 2024-25 vis-à-vis 2023-24 are shown below as per the latest DGCI&S estimates:

Table 1: Engineering Exports: Monthly Trend in 2024-25

US$ million

Month 2023-24 2024-25 Growth (%)
April 8949.36 8547.61 -4.49
May 9300.62 9991.25 7.43
June 8515.72 9389.75 10.26
April-June 26765.71 27928.61 4.34
July 8720.3 9166.73 5.12
August 9048.65 9435.53 4.28
September 8886.54 9824.32 10.55
July-September 26655.49 28426.59 6.64
October 8078.48 11251.25 39.27
November 7822.25 8895.53 13.72
December 10007.56 10840.8 8.33
October-December 25908.29 30987.58 19.6
January 8765.87 9422.7 7.49
February 9938.92 9079.99 -8.64
March 11266.67 10824.55 -3.92
January-March 29971.46 29327.24 -2.15
April-March 109300.95 116670.03 6.74

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-March 2024-25

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during the second month of May in the new fiscal 2024-25 over same period last fiscal as well as in cumulative terms during April-May 2024-25 vis-à-vis April-May 2023-24. The data clearly shows that top 25 countries contribute almost 76% of total engineering exports.

Table 2: Engineering exports country wise

(US$ million)

Countries May-2024 May-2025 Growth (%) April-March 2023-24 April-March 2024-25 Growth (%)
U S A 1671.9 1886.72 12.85% 17624.33 19155.98 8.69%
U ARAB EMTS 675.34 716.88 6.15% 5901.84 8277.69 40.26%
SAUDI ARAB 604.19 451.39 -25.29% 5232.1 5635.19 7.7%
U K 322.81 429.14 32.94% 3591.99 4013.3 11.73%
GERMANY 394.22 401.34 1.81% 4133.8 4234.85 2.44%
SINGAPORE 350.79 334.61 -4.61% 3399.01 4469.31 31.49%
MEXICO 300.12 312.64 4.17% 3249.1 3534.33 8.78%
KOREA RP 203.99 262.14 28.51% 2739.69 2597.11 -5.2%
ITALY 366.26 261.23 -28.68% 3886.05 2989.63 -23.07%
TURKEY 248.16 253.08 1.98% 2751.61 3044.4 10.64%
SOUTH AFRICA 252.54 225.55 -10.69% 2192.73 2517.98 14.83%
NEPAL 159.3 218.24 37% 2060.73 2247.38 9.06%
BRAZIL 191.91 216.1 12.61% 2077.3 2237.39 7.71%
CHINA P RP 266.07 216.05 -18.8% 2651.06 2667.41 0.62%
BANGLADESH PR 225.02 214.85 -4.52% 2193.75 2187.68 -0.28%
JAPAN 165.02 211.38 28.1% 1924.73 2437.67 26.65%
FRANCE 144.31 206.64 43.2% 1954.59 2494.93 27.64%
THAILAND 139.68 181.69 30.07% 1840.78 2005.25 8.93%
NETHERLAND 168.77 172.66 2.31% 1891.75 1905.41 0.72%
BELGIUM 179.82 146.6 -18.47% 1723.72 1400.74 -18.74%
VIETNAM SOC REP 157.38 139.21 -11.54% 1319.66 1435.26 8.76%
AUSTRALIA 119.21 137.08 14.99% 1424.23 1239.09 -13%
INDONESIA 120.21 130.46 8.52% 2336.19 1938.7 -17.01%
MALAYSIA 417.3 127.24 -69.51% 2318.09 1458.7 -37.07%
EGYPT A RP 79.65 121.88 53.01% 761.29 917.54 20.52%
Total engineering exports to top 25 countries 7923.97 7974.81 0.64% 81180.11 87042.93 7.22%
Total engineering exports 11266.67 10824.55 -3.92% 109300.95 116670.03 6.74%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

The following table depicts region wise India’s engineering exports for April-May 2024-25 as opposed to April-March 2023-24.

Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-March 2023-2024

(US$ million)

Regions May-2024 May-2025 Growth (%) April-March 2023-24 April-March 2024-25 Growth (%)
NORTH AMERICA 2085.03 2313.55 10.96% 22072.16 23917.39 8.36%
EUROPEAN UNION 2120.58 1767.59 -16.65% 20345.81 19949.83 -1.95%
WANA 2028.12 1755.54 -13.44% 16652.17 19503.06 17.12%
ASEAN 1381.86 995.24 -27.98% 12139.75 12245.33 0.87%
SSA( Sub Saharan Africa) 829.88 879.46 5.97% 8010.89 8759.8 9.35%
N E ASIA 743.19 848.14 14.12% 8251.86 8767.58 6.25%
OTHER EUROPE 609.03 724.85 19.02% 6701.79 7553.58 12.71%
SOUTH ASIA 672.87 615.84 -8.48% 6179.76 6489.37 5.01%
LATIN AMERICA 501.28 602.05 20.1% 5748.08 6186.97 7.64%
CIS 153.55 164.75 7.3% 1636.9 1848.55 12.93%
OCEANIA 139.53 146.46 4.96% 1537.78 1378.14 -10.38%
OTHERS 1.75 1.68 -3.97% 24.01 60.95 153.89%

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 May 2024 vis-à-vis May 2023 as well as the cumulative exports for April-May 2024-25 vis-à-vis April-May 2023-24.These are indicated in the tables below.

Table 4a. Trend in exports of iron and steel and its products

(US$ million)

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
IRON AND STEEL 1157.33 810.1 -30% 11859.36 9251.03 -21.99%
PRODUCTS OF IRON AND STEEL 994.67 981.12 -1.36% 9892.74 10116.34 2.26%
Sub Total 2152 1791.22 -17% 21752.1 19367.37 -11%

Source : DGCI&S

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

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
Aluminium and products made of Aluminium 577.55 654.99 13.41% 7681.05 6890.25 -10.3%
Copper and products made of copper 243.17 205.91 -15.32% 2526.23 2320.55 -8.14%
Lead and products made of Lead 101.1 108.93 7.74% 780.49 945.66 21.16%
Nickel and products made of Nickel 20.35 21.16 3.99% 167.48 190.54 13.77%
Other Non Ferrous Metals and their products 70.37 85.95 22.13% 748.06 870.35 16.35%
Tin and products made of Tin 1.9 3.25 71.23% 16.1 22.83 41.82%
Zinc and products made of zinc 46.84 64.56 37.82% 727.36 740.49 1.8%
Sub Total 1061.29 1144.76 8% 12646.78 11980.67 -5%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor 187.47 220.24 17.48% 1725.4 1964.45 13.86%
IC Engines and Parts 334.79 396.01 18.28% 3633.33 3881.66 6.83%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 812.27 898.25 10.59% 8059.27 8356.25 3.68%
Machine Tools 79.45 83.68 5.32% 787.93 808.28 2.58%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 260.23 287.56 10.5% 2530.62 2845.1 12.43%
Nuclear Reactors, Industrial Boilers and Parts 84.4 101.37 20.11% 741.63 853.78 15.12%
Pumps of all types 139.61 142.49 2.07% 1369.75 1549.54 13.13%
Sub Total 1898.22 2129.61 12.19% 18847.94 20259.06 7.49%

Source : DGCI&S

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

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
Electric Machinery and Equipment 1201.76 1385.86 15.32% 12370.91 14380.29 16.24%

Source : DGCI&S

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

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
AUTO COMPONENTS/PARTS 737.127 784.751 6.46% 7701.609 8184.475 6.27%
AUTO TYRES AND TUBES 284.124 293.694 3.37% 2889.864 3075.141 6.41%
Motor Vehicle/cars 741.668 911.112 22.85% 8254.553 9004.034 9.08%
Two and Three Wheelers 302.588 303.744 0.38% 2772.438 3206.621 15.66%
Sub Total 2065.507 2293.301 11.03% 21618.464 23470.271 8.57%

Source : DGCI&S

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

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
Aircrafts, Spacecrafts and Parts 894.2 242.96 -72.83% 3242.68 6963.35 678.73%
Ships, Boats and Floating Structures 475.83 254.21 -46.58% 4059.47 4296.68 802.99%
Sub Total 1370.03 497.17 -63.71% 7302.14 11260.03 54.2%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels March-2024 March-2025 Growth April-March 2023-24 April-March 2024-25 Growth
BICYCLE AND PARTS 36.74 46.6 26.85% 364.58 410.75 12.66%
Hand Tools, Cutting Tools and Implements made of Metals 90.89 98.79 8.69% 928.36 1040.49 12.08%
OFFICE EQUIPMENTS 31.6 31.68 0.26% 312.92 288 -7.96%
OTHER CONSTRUCTION MACHINERY 331.38 300.91 -9.2% 3032.67 3027.36 -0.18%
OTHER MISC. ITEMS 472.72 487.98 3.23% 4597.1 5111.55 11.19%
PRIME MICA AND MICA PRODUCTS 3.28 3.56 8.62% 37.03 31.67 -14.49%
Railway Transport and Parts 24.32 28.1 15.54% 315.31 357.12 13.26%
PROJECT GOODS 0.08 0.86 969.02% 2.61 3.17 21.67%
OTHR RUBBER PRODCT EXCPT FOOTW 165.41 171.62 3.75% 1680.61 1778.41 5.82%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-March 2023-24 April-March 2024-25 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 3257.41 3692.8 13%
U ARAB EMTS 1229.85 1564.63 27%
ITALY 2207.38 1333.66 -40%
NEPAL 864.46 896.22 4%
U K 739.31 868.1 17%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
U S A 1492.08 1533.88 3%
KOREA RP 1245.44 986.64 -21%
TURKEY 171.72 796.33 364%
SAUDI ARAB 1159.95 768.34 -34%
CHINA P RP 698.95 619.39 -11%
Industrial Machinery
U S A 3750.51 4222.73 13%
U ARAB EMTS 824.74 1012.89 23%
GERMANY 1026.84 899.66 -12%
CHINA P RP 719.05 852.16 19%
THAILAND 769.38 779.83 1%
Electrical Machinery
U S A 2390.9 2722.75 14%
SINGAPORE 1003.9 1526.07 52%
U K 954.54 1213.44 27%
GERMANY 737.8 950.5 29%
KOREA RP 480.45 683.88 42%
Automobiles
U S A 2508.56 2408.08 -4%
MEXICO 1634.74 1832.48 12%
SAUDI ARAB 1708.31 1661.54 -3%
SOUTH AFRICA 1319.05 1620.27 23%
U ARAB EMTS 929.31 1132.24 22%
Aircrafts and Spacecraft parts and products
U ARAB EMTS 406.2 1699.34 318%
SAUDI ARAB 441.17 1114.8 153%
FRANCE 201.2 747.18 271%
U S A 500.81 456.68 -9%
CZECH REPUBLIC 63.68 353.73 456%
Ships Boats and Floating products and parts
SINGAPORE 1063.62 1812.55 70%
U ARAB EMTS 922.95 1107.19 20%
U S A 53.07 306.45 477%
INDONESIA 569.29 306.38 -46%
SRI LANKA DSR 465.7 269.84 -42%
Project Goods
MALAYSIA 0.02 0.73 3227%
U S A 0.21 0.44 113%
KAZAKHSTAN 0 0.35 N/A
INDONESIA 0.19 0.27 42%
MAURITIUS 0 0.25 N/A
Other Rubber Product Except Footwear
U S A 381.71 406.14 6%
GERMANY 115.66 112.07 -3%
U ARAB EMTS 60.79 76.26 25%
NETHERLAND 51.05 67.25 32%
CHINA P RP 63.27 65.95 4%
Other engineering products
U S A 2439.97 2539.48 4%
U K 499.12 504.18 1%
U ARAB EMTS 439.17 503.51 15%
GERMANY 422.2 474.83 12%
SAUDI ARAB 483.53 311.57 -36%

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 92 % of India’s exports is contributed by the listed 12 states. Within this almost 52.6 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together.

Table 6: Top state wise engineering export performance - April-March 2024-25

(US$ million)

Top States Cumulative Export April-March 2024-25 Share % Remark
Maharashtra 22546.4 22.58% 94.6% share covered by top 12 states
Tamil Nadu 18108.6 18.14%
Gujarat 16590.5 16.62%
Telangana 7536.2 7.55%
Karnataka 7277.3 7.29%
Odisha 5910.1 5.92%
Uttar Pradesh 4348.7 4.36%
Andhra Pradesh 4319.4 4.33%
West Bengal 3523.7 3.53%
Madhya Pradesh 2013.1 2.02%
Rajasthan 1346.3 1.35%
Daman & Diu And Dadra & Nagar Haveli 1242 1.24%
Haryana 1041.1 1.04%
Kerala 840.9 0.84%
Jharkhand 807.2 0.81%
Chhattisgarh 754.6 0.76%
Punjab 423.1 0.42%
Goa 405.8 0.41%
Delhi 370.4 0.37%
Puducherry 180.2 0.18%
Uttarakhand 124.5 0.12%
Bihar 61.1 0.06%
Assam 19.4 0.02%
Himachal Pradesh 13.9 0.01%
Tripura 10.9 0.01%
Chandigarh 9.6 0.01%
Arunachal Pradesh 1.8 0%
Jammu & Kashmir 1.8 0%
Sikkim 1 0%
Manipur 0.8 0%
Lakshadweep 0.1 0%
Andaman & Nicobar 0.1 0%
Meghalaya 0.1 0%
Mizoram 0 0%
Nagaland 0 0%
Ladakh 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 36 percent share. Tamil Nadu from the Southern Region has improved its export performance and it ranked second after Maharashtra, while Gujarat and Telangana ranked third and fourth during April-May 2024-25.

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 May-2024($Mn) May-2025($Mn) Growth % Apr-May 2023-24($Mn) Apr-May 2024-25 ($Mn) Growth %
WESTERN REGION 4070.4 4143.4 1.79% 41415.4 42797.8 3.34%
SOUTHERN REGION 3884.2 3310.4 -14.77% 33012.2 38262.7 15.9%
EASTERN REGION 1096.1 989.8 -9.7% 12236.7 11089.8 -9.37%
NORTHERN REGION 2235 432.9 -80.63% 22650.9 7680.4 -66.09%
Grand Total 11285.7 8876.5 -21.35% 109315.2 99830.7 -8.68%

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 look 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 each of fiscal 2022-23 and 2023-24, as many as 10 out of 12 months saw engineering exports and manufacturing output moved in the same direction.

The first month of fiscal 2024-25 also saw manufacturing output growth and engineering exports growth moving in the same direction. While engineering exports declined from a growth in Mar 2024, manufacturing output growth decelerated.

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

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during May 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 May 2024, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2023-24 and 2024-25 till May 2024 as per the latest data published, as mere one-month figure does not reflect any trend.  The following two tables 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
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

Rupee depreciation vis-à-vis the US Dollar continued on a year-on-year basis in the new fiscal 2024-25 but on a month-on-month basis, marginal appreciation was seen in May 2024. Outflow of funds from Indian capital market due to global economic and geo political uncertainty and strengthening of dollar at the same time in the international market following the geo-political tensions continued to weigh on several other major currencies including Rupee.

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 2024-25 depicted in the table below:

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

(US$ million)

Trade Flow Apr May June July August September October November December January February March
Engineering Export 11034.8 10.0 9.4 9.0 9.4 9.8 11.2 8.9 10.8 9.4 9.1 10.8
Engineering Import 10985.6 12.9 12.0 12.5 14.1 12.7 13.4 13.0 13.2 13.6 12.1 13.1
Trade Balance -0.4 -2.9 -2.6 -3.5 -4.7 -2.9 -2.2 -4.1 -2.4 -4.2 -3.0 -2.3

Source : DGCI&S

TO CONCLUDE...

Engineering exports in May 2024 recorded growth after a decline last month. The growth was on the account of the positive performance of the machinery and automobile sectors. However, there was a decline in the metal exports especially that of iron and steel. Aluminium, copper, zinc and nickel. This is chiefly due to increased competition from China which is undergoing a decline in domestic demand and is flooding the global markets with cheaper metals, especially the markets in South East Asia and Middle East. Indian metal producers are also facing certain market access issues in developed countries such as those in EU and North America. Additionally, domestic demand in India has also been on the rise. All these factors have impacted the metal exports from India. In this situation, inclusion of steel in the RoDTEP scheme may provide greater incentive for steel exporters in India. In terms of destinations, exports revived in North America. Significant export growth was also noted in WANA, Latin America and European countries outside EU.  However, exports to EU declined significantly, decline was also noted in ASEAN markets. Overall, the performance has revived compared to the last month and we are hopeful that the positive track will continue despite global geo-economic concerns. We also hope that the Government will continue to support us in our future endeavors especially in the upcoming budget.