May 2026

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

After starting the new fiscal 2024-25 with a 4.49% year-on-year decline (Revised downward from the preliminary estimate of 3.17%) in April 2024, Indian engineering exports in May 2024 bounced back to growth with 7.39% year-on-year increase in shipment.
?Engineering exports in May 2024 rose to USD 9,988.43 million from USD 9,300.75 million in May 2023.
Cumulative engineering exports recorded at a higher USD 18,536.35 million during April-May 2024-25 as against USD 18,250.12 million during the same period of 2023-24, registering an increase of 1.57 percent. 
According to the Quick Estimates of Department of Commerce, Government of India, share of engineering exports in India’s total merchandise exports during May 2024 was recorded at a higher 26.61 percent as against 24.76 percent in April 2024. On a cumulative basis, the share was 25.51 percent during April-May 2024-25.
?In May 2024, 23 out of 34 engineering panels witnessed positive year-on-year growth, while 11 remaining engineering panels experienced decline. Exports of Iron and Steel, Non-Ferrous products including Copper, Aluminium and Nickel products, Other products including Medical and Scientific Instruments, Railway Transports, and Office Equipment dropped.
?On a cumulative basis, 22 out of 34 engineering panels recorded positive growth and remaining 12 engineering panels including Iron and Steel, Products of Iron and Steel, some non-ferrous sectors including Aluminium, Zinc, Nickel, and products, Pumps of all types, Other products including Medical and Scientific Instruments, and Office Equipment recorded negative growth during April-May 2024-25
?Region wise, North America and European Union remained India's topmost destinations for engineering exports with share of 21% and 17% respectively, in India's total engineering exports. Other Europe registered the highest growth of 26.3% during April-May 2024-25 vis-à-vis the same period last year followed by WANA (growth of 25.7%), CIS (growth of 18.5%), North America (growth of 9.7%), etc.
?Among top exporting destinations, USA, UAE, Saudi Arabia, Turkey, Singapore, UK, Mexico and Italy experienced positive growth in April-May 2024-25 while Germany, Italy, Korea Rep, Nepal, Bangladesh saw negative export growth.  

Monthly Trend

Highlights

Product Panels

Impact of Exchange Rate

Conclude

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May-2026 engineering exports hit peak growth for fiscal 2024-2025

Trade Flow	Export figures(in $ billion)				Growth (%)
	May-2025	May-2026	Apr-May 2023-24	Apr-May 2024-25	May-2026 over May-2025	Apr-May 2023-24 over Apr-May 2024-25
							Engineering exports	9.89	12.31	19.41	22.66	24.48%	16.79%
							Overall Merchandise exports	38.30	45.20	76.59	88.91	18.00%	16.09%
Share of engineering (%)	25.82%	27.24%	25.34%	25.49%	---	---
Service Exports	32.46	36.76	65.30	73.79	13.25%	13.00%

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 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	9515.77	10351.01	8.78
May	9890.43	12311.33	24.48
April-May	19406.20	22664.42	16.79

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-May 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-2025	May-2026	Growth (%)	April-May 2023-24	April-May 2024-25	Growth (%)
U S A	1735.32	1895.91	9.25%	3397.41	3638.96	7.11%
U ARAB EMTS	683.85	1242.32	81.67%	1223.57	1580.34	29.16%
U K	388.45	500.58	28.86%	723.75	972.53	34.37%
GERMANY	431.1	459.72	6.64%	764.48	885.79	15.87%
SAUDI ARAB	337.02	375.95	11.55%	731.46	732.13	0.09%
KOREA RP	219.44	368.24	67.81%	473.2	638.72	34.98%
SRI LANKA DSR	77.73	357.77	360.27%	147.33	660.17	348.1%
MEXICO	281.98	342.93	21.62%	526.15	623.16	18.44%
CHINA P RP	207.41	338.01	62.97%	373.08	639.1	71.3%
MALAYSIA	96.49	322.93	234.67%	191.37	484.12	152.97%
SINGAPORE	366.52	311.94	-14.89%	865.02	658.25	-23.9%
SOUTH AFRICA	189.87	308.55	62.51%	387.54	549.63	41.83%
ITALY	274.75	278.71	1.44%	543.09	535.14	-1.46%
FRANCE	191.49	235.16	22.8%	352.48	426.38	20.97%
JAPAN	215.07	226.5	5.32%	446.4	429.13	-3.87%
NETHERLAND	217.98	223.18	2.39%	370.7	396.18	6.87%
BRAZIL	216.08	222.69	3.06%	427.74	428.3	0.13%
NEPAL	226.94	221.21	-2.53%	434.53	468.01	7.7%
VIETNAM SOC REP	116.48	200.35	72.01%	233.88	379.93	62.44%
INDONESIA	174.39	190.04	8.98%	295.46	339.84	15.02%
TURKEY	176.29	186.41	5.74%	368.83	353.17	-4.24%
THAILAND	191.59	176.91	-7.66%	350.33	325.58	-7.07%
AUSTRALIA	131.27	167.66	27.72%	262.81	328.83	25.12%
SPAIN	117.32	148.02	26.17%	244.27	324.93	33.02%
CANADA	112.32	139.52	24.22%	212.42	265.05	24.77%
Total engineering exports to top 25 countries	7377.15	9441.22	27.98%	14347.3	17063.36	18.93%
Total engineering exports	9890.43	12311.33	24.48%	19406.2	22664.42	16.79%

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-May 2023-2024

(US$ million)

Regions	May-2025	May-2026	Growth (%)	April-May 2023-24	April-May 2024-25	Growth (%)
NORTH AMERICA	2129.62	2378.37	11.68%	4135.98	4527.16	9.46%
WANA	1428.28	2061.16	44.31%	2773.04	3162.83	14.06%
EUROPEAN UNION	1782.09	1866.08	4.71%	3438.64	3739.79	8.76%
ASEAN	1012.86	1298.05	28.16%	2167.11	2372.12	9.46%
N E ASIA	746.78	1061.63	42.16%	1496.34	1934.26	29.27%
SSA( Sub Saharan Africa)	765.15	993.45	29.84%	1452.77	1880.35	29.43%
SOUTH ASIA	549.34	840.25	52.96%	1053.5	1591.35	51.05%
OTHER EUROPE	602.97	761.54	26.3%	1177.32	1477.24	25.47%
LATIN AMERICA	593.74	717.39	20.83%	1159.73	1325.34	14.28%
OCEANIA	145.33	178	22.48%	288.67	350.05	21.26%
CIS	125.29	126.64	1.08%	243.48	264.1	8.47%
OTHERS	8.98	28.76	220.29%	19.62	39.81	102.94%

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	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
IRON AND STEEL	772.68	967.47	25.21%	1624.57	1828.34	12.54%
PRODUCTS OF IRON AND STEEL	876.78	834.27	-4.85%	1647.86	1642.72	-0.31%
Sub Total	1649.46	1801.74	9%	3272.43	3471.06	6%

Source : DGCI&S

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

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
Aluminium and products made of Aluminium	538.75	804.62	49.35%	1033.83	1487.6	43.89%
Copper and products made of copper	191.09	371.31	94.31%	373.27	698.49	87.13%
Lead and products made of Lead	81.67	76.33	-6.54%	157.65	150.71	-4.4%
Nickel and products made of Nickel	13.05	19.35	48.29%	26.5	35.41	33.61%
Other Non Ferrous Metals and their products	87.51	105.54	20.6%	169.31	218.55	29.08%
Tin and products made of Tin	2.26	10.06	344.92%	3.98	12.19	205.99%
Zinc and products made of zinc	56.83	96.38	69.58%	107.37	175.68	63.61%
Sub Total	971.16	1483.6	53%	1871.92	2778.62	48%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	189.11	200.16	5.84%	376.78	387.35	2.8%
IC Engines and Parts	364	347.38	-4.57%	689.78	683.31	-0.94%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	761.29	762.42	0.15%	1458.7	1501.82	2.96%
Machine Tools	62.9	69.36	10.26%	128.97	142.35	10.38%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	250.91	253.03	0.84%	493.92	514.67	4.2%
Nuclear Reactors, Industrial Boilers and Parts	65.06	108.91	67.41%	179.02	190.45	6.39%
Pumps of all types	127.57	132.09	3.54%	247.96	270.26	8.99%
Sub Total	1820.84	1873.34	2.88%	3575.14	3690.21	3.22%

Source : DGCI&S

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

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
Electric Machinery and Equipment	1301.4	1560.79	19.93%	2493.73	2866.11	14.93%

Source : DGCI&S

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

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
AUTO COMPONENTS/PARTS	730.444	775.941	6.23%	1383.932	1476.648	6.7%
AUTO TYRES AND TUBES	283.201	284.825	0.57%	540.094	563.317	4.3%
Motor Vehicle/cars	859.525	1029.223	19.74%	1682.05	1891.168	12.43%
Two and Three Wheelers	299.961	389.018	29.69%	562.09	745.627	32.65%
Sub Total	2173.131	2479.007	14.08%	4168.166	4676.76	12.2%

Source : DGCI&S

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

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
Aircrafts, Spacecrafts and Parts	133.72	207.97	55.53%	265.09	347.22	159.66%
Ships, Boats and Floating Structures	391.55	1318.11	236.64%	900.56	1843.33	370.78%
Sub Total	525.27	1526.07	190.53%	1165.65	2190.54	87.92%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	May-2025	May-2026	Growth	April-May 2023-24	April-May 2024-25	Growth
BICYCLE AND PARTS	40.47	43.47	7.41%	76.67	83.46	8.86%
Cranes, Lifts and Winches	93.87	90.15	-3.97%	175.41	183.88	4.83%
Hand Tools, Cutting Tools and Implements made of Metals	88.91	93.02	4.62%	177.68	178.11	0.24%
Medical and Scientific Instruments	249.65	261.27	4.66%	476.95	493.13	3.39%
OFFICE EQUIPMENTS	31.95	34.59	8.26%	56.23	62.42	11.02%
OTHER CONSTRUCTION MACHINERY	311.47	311.03	-0.14%	579.72	610.95	5.39%
OTHER MISC. ITEMS	435.78	481	10.38%	938.56	911.44	-2.89%
PRIME MICA AND MICA PRODUCTS	3.46	2.87	-17.06%	6.31	5.58	-11.63%
Railway Transport and Parts	32.77	102.57	212.99%	63.25	142.81	125.77%
PROJECT GOODS	0.05	0.17	206.1%	0.11	0.29	164.09%
OTHR RUBBER PRODCT EXCPT FOOTW	160.79	166.65	3.65%	308.27	319.04	3.49%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-May 2023-24	April-May 2024-25	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	677.33	776.53	15%
	U K	126.29	198.6	57%
	U ARAB EMTS	226.38	180.99	-20%
	NEPAL	160.97	177.85	10%
	ITALY	215.27	157.22	-27%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	U S A	298.34	345.25	16%
	SAUDI ARAB	158.27	251.47	59%
	KOREA RP	187.21	242.91	30%
	CHINA P RP	65.56	204.95	213%
	VIETNAM SOC REP	71.01	110.42	55%
Industrial Machinery
	U S A	773.18	789.67	2%
	CHINA P RP	141.83	181.33	28%
	GERMANY	155.42	171.72	10%
	AUSTRALIA	60.5	132.67	119%
	SAUDI ARAB	120.86	128.72	7%
Electrical Machinery
	U S A	501.22	518.39	3%
	U K	261.9	295.31	13%
	SINGAPORE	250.18	243.31	-3%
	KOREA RP	138.82	212.29	53%
	MALAYSIA	57.19	210.82	269%
Automobiles
	U S A	414.85	430.89	4%
	MEXICO	302.83	353.36	17%
	SOUTH AFRICA	256.89	309.33	20%
	SAUDI ARAB	262.86	179.93	-32%
	GERMANY	128.93	178.9	39%
Aircrafts and Spacecraft parts and products
	U S A	71.47	103.94	45%
	MALDIVES	0.43	60.07	13870%
	FRANCE	40.02	44.81	12%
	U K	28.39	28.11	-1%
	MALAYSIA	12.21	18.24	49%
Ships Boats and Floating products and parts
	U ARAB EMTS	269.06	951.79	254%
	SRI LANKA DSR	0	373.89	N/A
	SINGAPORE	445.26	205.5	-54%
	OMAN	54.31	46.56	-14%
	MALAYSIA	6.44	43.41	574%
Project Goods
	SUDAN	0	0.1	N/A
	BELGIUM	0	0.03	N/A
	U S A	0.02	0.03	63%
	ANGOLA	0	0.03	N/A
	AUSTRIA	0	0.02	N/A
Other Rubber Product Except Footwear
	U S A	70.67	63.92	-10%
	GERMANY	20.12	21.13	5%
	CHINA P RP	12.77	14.43	13%
	THAILAND	7.2	11.93	66%
	BRAZIL	10.18	10.74	6%
Other engineering products
	U S A	589.82	608.58	3%
	U K	117.74	146.51	24%
	GERMANY	124.74	129.16	4%
	BRAZIL	68.74	78.85	15%
	U ARAB EMTS	132.23	78.17	-41%

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-January 2025-26

(US$ million)

Top States	Cumulative Export April-January 2025-26	Share %	Remark
Maharashtra	4346.5	19.18%	91% share covered by top 12 states
Gujarat	4039.9	17.82%
Tamil Nadu	3514	15.5%
Karnataka	1741.5	7.68%
Haryana	1622.3	7.16%
Odisha	1368	6.04%
Delhi	893.6	3.94%
Uttar Pradesh	770.8	3.4%
West Bengal	737.2	3.25%
Rajasthan	630	2.78%
Andhra Pradesh	570.9	2.52%
Punjab	502.4	2.22%
Telangana	430.3	1.9%
Madhya Pradesh	349	1.54%
DADRA,NH,DAMAN,DIU	332.8	1.47%
Kerala	161.7	0.71%
Chhattisgarh	158.7	0.7%
JHARKHAND	135.6	0.6%
Goa	125.2	0.55%
Uttarakhand	107.2	0.47%
Bihar	45.5	0.2%
Puducherry	30.4	0.13%
Himachal Pradesh	28	0.12%
CHANDIGARH	12.2	0.05%
Jammu & Kashmir	5.3	0.02%
Assam	4.8	0.02%
SIKKIM	0.2	0%
MANIPUR	0.2	0%
Meghalaya	0.1	0%
TRIPURA	0	0%
NAGALAND	0	0%
MIZORAM	0	0%
LADAKH	0	0%
ANDAMAN AND NICOBAR ISLANDS	0	0%
LAKSHADWEEP	0	0%
ARUNACHAL PRADESH	0	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 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 May-2026

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

Value in US$ million

Region	Apr-May 2023-24($Mn)	Apr-May 2024-25 ($Mn)	Growth %
SOUTHERN REGION	5994.2	6448.8	7.58%
EASTERN REGION	1818.9	2450.3	34.71%
WESTERN REGION	7487.9	9193.4	22.78%
NORTHERN REGION	4105.4	4571.8	11.36%
Grand Total	19406.4	22664.3	16.79%

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
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

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 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

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 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 2024-25 depicted in the table below:

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

(US$ million)

Trade Flow	April	May
Engineering Export	10.4	12.31
Engineering Import	14.4	14.36
Trade Balance	-4.0	-2.05

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.