January 2026

Engineering exports recorded more than 10% growth in January 2026 after registering marginal growth last month

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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January-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	9.42	10.40	96.76	101.13	10.4%	4.52%
							Overall merchandise exports	36.33	36.55	358.74	366.62	0.61%	2.20%
Share of engineering (%)	25.9%	28.5%	27.0%	27.6%	---	---
Service Exports	34.75	43.90	320.28	354.13	26.33%	10.57%

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	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
April- January	96761.45	101131.86	4.52

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-January 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-January 2023-24	April-January 2024-25	Growth (%)
U S A	1622.85	1513.23	-6.75%	15613.93	16195.43	3.72%
U ARAB EMTS	611.79	871.48	42.45%	6874.46	6628.23	-3.58%
SAUDI ARAB	389.16	518.58	33.25%	4861.23	4189.04	-13.83%
GERMANY	360.31	443.49	23.09%	3500.55	4081.21	16.59%
U K	347.66	408.91	17.62%	3258.99	3892.03	19.42%
SINGAPORE	169.72	363.8	114.35%	3936.04	3669.11	-6.78%
CHINA P RP	240.69	304.85	26.66%	2243.94	2637.18	17.52%
JAPAN	230.88	285.85	23.81%	1987.18	2215.39	11.48%
ITALY	211.02	284.86	34.99%	2490.38	2917.5	17.15%
KOREA RP	189.46	248.33	31.08%	2110.02	2476.77	17.38%
SOUTH AFRICA	245.96	246.67	0.29%	2108.17	2400.95	13.89%
MEXICO	272.58	244.68	-10.24%	2945.79	2764.77	-6.14%
NEPAL	185.61	208.15	12.15%	1854.49	1961.81	5.79%
VIETNAM SOC REP	104.52	202.83	94.07%	1197.07	1621.26	35.44%
BRAZIL	170.06	187.62	10.33%	1845.75	2067.09	11.99%
TURKEY	215.65	184.26	-14.56%	2608.54	1609.37	-38.3%
NETHERLAND	163.6	183.75	12.32%	1580.9	1871.4	18.38%
FRANCE	202.11	177.55	-12.15%	2072.88	1917.59	-7.49%
SRI LANKA DSR	89.88	163.23	81.61%	951.99	1438.32	51.09%
THAILAND	170.23	153.5	-9.83%	1655.05	1807.88	9.23%
SPAIN	105.67	152.05	43.89%	1176.2	1475.42	25.44%
BANGLADESH PR	189.77	150.56	-20.66%	1771.23	1623.44	-8.34%
INDONESIA	130.91	149.08	13.88%	1685.81	1305.18	-22.58%
AUSTRALIA	100.44	124.34	23.79%	1011.51	1280.93	26.64%
CANADA	101.52	121.71	19.88%	1016.12	1112.25	9.46%
Total engineering exports to top 25 countries	6822.05	7893.36	15.7%	72358.22	75159.55	3.87%
Total engineering exports	9424.17	10401.8	10.37%	96761.45	101131.86	4.52%

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-January 2023-2024

(US$ million)

Regions	May-2025	May-2026	Growth (%)	April-January 2023-24	April-January 2024-25	Growth (%)
NORTH AMERICA	1996.95	1879.61	-5.88%	19575.84	20072.46	2.54%
WANA	1473.28	1857.16	26.06%	16273.86	15543.97	-4.49%
EUROPEAN UNION	1585.12	1761.09	11.1%	16579.48	18101.59	9.18%
ASEAN	735.99	1075.4	46.12%	10521.71	10664.28	1.35%
N E ASIA	735.63	964.33	31.09%	7153.57	8329.22	16.43%
SSA( Sub Saharan Africa)	938.68	825.67	-12.04%	7203.16	8192.35	13.73%
OTHER EUROPE	594.96	640.85	7.71%	6298.69	5909.68	-6.18%
SOUTH ASIA	542.13	568.73	4.91%	5350.19	5553.07	3.79%
LATIN AMERICA	549.51	538.17	-2.06%	5120.48	5793.88	13.15%
CIS	153.31	141.15	-7.93%	1499.22	1420.96	-5.22%
OCEANIA	107.82	137.13	27.19%	1134.12	1409.79	24.31%
OTHERS	10.79	2.22	-79.45%	51.08	130.32	155.13%

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	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
IRON AND STEEL	745.68	912.01	22.31%	7752.22	8570.84	10.56%
PRODUCTS OF IRON AND STEEL	899.81	908.6	0.98%	8304.03	8711.52	4.91%
Sub Total	1645.49	1820.61	11%	16056.25	17282.36	8%

Source : DGCI&S

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

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
Aluminium and products made of Aluminium	575.45	666.21	15.77%	5705.99	5767.44	1.08%
Copper and products made of copper	227.91	346.92	52.22%	1942.98	2887.33	48.6%
Lead and products made of Lead	79.75	118.9	49.09%	743.25	1063.19	43.05%
Nickel and products made of Nickel	18.34	14.66	-20.06%	152.9	150.07	-1.85%
Other Non Ferrous Metals and their products	76.04	92.78	22.01%	713.42	856.39	20.04%
Tin and products made of Tin	1.39	5.97	328.79%	18.54	34.24	84.65%
Zinc and products made of zinc	60.22	82.46	36.94%	618	685.44	10.91%
Sub Total	1039.1	1327.91	28%	9895.09	11444.1	16%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	174.98	187.5	7.15%	1580.22	1845.98	16.82%
IC Engines and Parts	324.85	315.27	-2.95%	3141.2	3444.01	9.64%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	697.21	729.54	4.64%	6772.49	7487.14	10.55%
Machine Tools	64.58	65.86	1.98%	652.43	755.35	15.78%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	251.81	258.78	2.77%	2316.33	2578.62	11.32%
Nuclear Reactors, Industrial Boilers and Parts	65.42	71.09	8.68%	680.01	842.27	23.86%
Pumps of all types	121.43	135.6	11.67%	1283.08	1370.86	6.84%
Sub Total	1700.28	1763.64	3.73%	16425.75	18324.24	11.56%

Source : DGCI&S

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

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
Electric Machinery and Equipment	1176.86	1275.02	8.34%	11768.87	12726.06	8.13%

Source : DGCI&S

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

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
AUTO COMPONENTS/PARTS	660.764	686.239	3.86%	6745.366	7119.268	5.54%
AUTO TYRES AND TUBES	254.737	264.906	3.99%	2544.945	2653.88	4.28%
Motor Vehicle/cars	686.995	876.887	27.64%	7375.945	9089.167	23.23%
Two and Three Wheelers	255.36	329.918	29.2%	2637.235	3240.845	22.89%
Sub Total	1857.857	2157.95	16.15%	19303.49	22103.161	14.5%

Source : DGCI&S

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

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
Aircrafts, Spacecrafts and Parts	617.65	128.36	-79.22%	6389.13	1353.27	119.1%
Ships, Boats and Floating Structures	95.4	453.1	374.96%	3819.11	3396.85	3460.72%
Sub Total	713.05	581.47	-18.45%	10208.24	4750.11	-53.47%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	January-2025	January-2026	Growth	April-January 2023-24	April-January 2024-25	Growth
BICYCLE AND PARTS	37.2	40.2	8.06%	328	389.84	18.86%
Cranes, Lifts and Winches	79.95	81.51	1.95%	894.04	907	1.45%
Hand Tools, Cutting Tools and Implements made of Metals	92.68	80.71	-12.92%	860.73	851.45	-1.08%
Medical and Scientific Instruments	226.93	230.13	1.41%	2308.52	2355.95	2.05%
OFFICE EQUIPMENTS	17.71	27.69	56.36%	236.33	328.86	39.15%
OTHER CONSTRUCTION MACHINERY	234.19	379.31	61.97%	2468.11	2981.06	20.78%
OTHER MISC. ITEMS	423.1	455.75	7.72%	4202.52	4692.48	11.66%
PRIME MICA AND MICA PRODUCTS	2.97	1.85	-37.64%	25.93	25.18	-2.91%
Railway Transport and Parts	24.3	29.37	20.86%	306.77	412.39	34.43%
PROJECT GOODS	0.18	0.16	-13.1%	2.14	1.63	-23.93%
OTHR RUBBER PRODCT EXCPT FOOTW	152.31	148.53	-2.48%	1470.68	1555.98	5.8%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-January 2023-24	April-January 2024-25	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	2979.65	3102.01	4%
	U ARAB EMTS	1259.89	1294.31	3%
	ITALY	1124.86	1293.49	15%
	U K	737.05	706.9	-4%
	NEPAL	741.75	680.39	-8%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	U S A	1225.31	1466.45	20%
	SAUDI ARAB	637.06	1061.5	67%
	KOREA RP	806.93	1006.69	25%
	CHINA P RP	511.31	895.58	75%
	VIETNAM SOC REP	348.13	595.79	71%
Industrial Machinery
	U S A	3425.83	3601.86	5%
	U ARAB EMTS	804.85	1101.51	37%
	GERMANY	728.29	816.23	12%
	CHINA P RP	717.39	780.15	9%
	SAUDI ARAB	532.11	649.06	22%
Electrical Machinery
	U S A	2224.24	2483.74	12%
	U K	923.95	1304.31	41%
	SINGAPORE	1297.1	1259.85	-3%
	GERMANY	800.77	883.46	10%
	KOREA RP	528.52	685.73	30%
Automobiles
	U S A	1990.54	1880.06	-6%
	SOUTH AFRICA	1354.79	1599.4	18%
	MEXICO	1495.59	1522.68	2%
	SAUDI ARAB	1359.82	1422.55	5%
	U ARAB EMTS	931.32	1155.52	24%
Aircrafts and Spacecraft parts and products
	U S A	375.86	413.85	10%
	FRANCE	672.12	243.25	-64%
	U K	125.4	153.43	22%
	GERMANY	63.34	79.61	26%
	RUSSIA	21.98	59.68	171%
Ships Boats and Floating products and parts
	U ARAB EMTS	882.17	1215.6	38%
	SINGAPORE	1695.18	1206.86	-29%
	SRI LANKA DSR	233.59	316.46	35%
	INDONESIA	306.38	125.12	-59%
	OMAN	9.96	87.78	782%
Project Goods
	U S A	0.35	0.4	13%
	FRANCE	0.03	0.27	781%
	U K	0.01	0.16	2342%
	NIGERIA	0.03	0.1	287%
	OMAN	0.01	0.1	1357%
Other Rubber Product Except Footwear
	U S A	336.2	322.37	-4%
	GERMANY	93.21	111.67	20%
	U ARAB EMTS	63.93	66.68	4%
	CHINA P RP	55.05	62.63	14%
	NETHERLAND	54.75	53.27	-3%
Other engineering products
	U S A	2804.49	2919.02	4%
	U ARAB EMTS	540.27	686.11	27%
	GERMANY	558.86	666.62	19%
	U K	556.46	615.81	11%
	SAUDI ARAB	346.45	339.41	-2%

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-November 2025-26

(US$ million)

Top States	Cumulative Export April-November 2025-26	Share %	Remark
Maharashtra	25102.4	27.42%	91.5% share covered by top 12 states
Tamil Nadu	18051.5	19.72%
Gujarat	13650.1	14.91%
Delhi	5215.8	5.7%
Karnataka	5122.8	5.6%
Haryana	3854.5	4.21%
Odisha	3732.7	4.08%
West Bengal	3415.9	3.73%
Andhra Pradesh	3247	3.55%
Uttar Pradesh	2537.5	2.77%
Punjab	1595.1	1.74%
Rajasthan	1231.6	1.35%
Telangana	1113	1.22%
Bihar	1002.8	1.1%
Kerala	939.9	1.03%
Goa	717.7	0.78%
Madhya Pradesh	589.7	0.64%
Uttarakhand	371.8	0.41%
Assam	38.6	0.04%
Puducherry	13.1	0.01%
Himachal Pradesh	3	0%
Others	2.1	0%
Chhattisgarh	0	0%
Jammu & Kashmir	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 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	30453.1	28487.3	-6.46%
EASTERN REGION	7557	8190	8.38%
WESTERN REGION	35553.1	40059.9	12.68%
NORTHERN REGION	14671.1	14809.3	0.94%
Others	0	2.1	0%
Grand Total	88234.3	91548.6	3.76%

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

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	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

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	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 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	June	July	August	September	October	November	December	January
Engineering Export	9.5	9.9	9.5	10.4	9.9	10.1	9.4	11.0	11.0	10.4
Engineering Import	13.4	13.8	11.5	14.0	13.2	13.4	13.8	13.5	14.0	14.0
Trade Balance	-3.9	-3.9	-2.0	-3.6	-3.3	-3.3	-4.4	-2.5	-3.0	-3.6

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.