July 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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July-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	10.40	12.24	39.24	46.38	17.71%	18.21%
							Overall Merchandise exports	36.98	44.24	148.48	173.78	19.63%	17.04%
Share of engineering (%)	28.12%	27.67%	26.43%	26.69%	---	---
Service Exports	33.74	35.89	131.15	142.64	6.37%	8.76%

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
June	9506.71	11478.69	20.74
April-June	28912.91	34143.99	18.09
July	10399.9	12242.18	17.71
April-Jul	39237.36	46383.37	18.21

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-July 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-July 2023-24	April-July 2024-25	Growth (%)
U S A	1818.71	2182.08	19.98%	6951.81	7771.16	11.79%
SINGAPORE	353.61	517.84	46.44%	1590.49	1721.88	8.26%
U ARAB EMTS	574.52	504.83	-12.13%	2428.74	2532.15	4.26%
GERMANY	458.18	495.8	8.21%	1617.6	1829.89	13.12%
U K	402.58	457.92	13.75%	1539.65	1806.91	17.36%
JAPAN	256.61	391.73	52.66%	893.29	1121.19	25.51%
SAUDI ARAB	381.75	359.35	-5.87%	1478	1416.02	-4.19%
MEXICO	290.51	356.18	22.61%	1076.31	1288.94	19.76%
CHINA P RP	264.03	349.05	32.2%	845.25	1349.63	59.67%
ITALY	292.58	322.81	10.33%	1076.6	1096.86	1.88%
SOUTH AFRICA	227.43	298.04	31.05%	847.19	1117.9	31.95%
FRANCE	201.43	283.77	40.88%	739.71	965.89	30.58%
BRAZIL	227.84	281.84	23.7%	858.98	898.79	4.63%
KOREA RP	236.6	274.45	16%	951.74	1158.63	21.74%
AUSTRALIA	118.95	247.85	108.36%	484.95	698.53	44.04%
SRI LANKA DSR	124.3	244.96	97.08%	420.75	1093.12	159.8%
MALAYSIA	133.14	239.7	80.03%	404.39	919.61	127.41%
INDONESIA	168.66	220.85	30.94%	573	738.89	28.95%
VIETNAM SOC REP	127.93	215.97	68.82%	472.45	832.2	76.15%
NEPAL	178.27	205.77	15.42%	796.2	891.65	11.99%
NETHERLAND	179.33	192.85	7.54%	732.95	792.22	8.09%
THAILAND	202.34	183.98	-9.07%	729.32	704.23	-3.44%
TURKEY	183.21	173.01	-5.56%	700.06	684.57	-2.21%
SPAIN	134.42	168.95	25.69%	483.52	687.76	42.24%
BELGIUM	177.64	158.68	-10.67%	594.82	555.42	-6.62%
Total engineering exports to top 25 countries	7714.55	9328.27	20.92%	29287.77	34674.02	18.39%
Total engineering exports	10399.95	12242.18	17.71%	39237.36	46383.37	18.21%

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-July 2023-2024

(US$ million)

Regions	May-2025	May-2026	Growth (%)	April-July 2023-24	April-July 2024-25	Growth (%)
NORTH AMERICA	2215.81	2687.47	21.29%	8456.71	9623.91	13.8%
EUROPEAN UNION	1881.23	2052.98	9.13%	6910.63	7788.95	12.71%
ASEAN	1059.76	1472.44	38.94%	4158.16	5289.13	27.2%
WANA	1453.48	1368.88	-5.82%	5630.87	6013.47	6.79%
N E ASIA	865	1151.64	33.14%	3093.11	4122.37	33.28%
SSA( Sub Saharan Africa)	807.97	1029.2	27.38%	2993.97	3856.33	28.8%
LATIN AMERICA	664.2	726.93	9.45%	2401.11	2704.56	12.64%
OTHER EUROPE	623.58	691.31	10.86%	2394.75	2746.45	14.69%
SOUTH ASIA	530.34	658.16	24.1%	2125.55	2876.81	35.34%
OCEANIA	132.89	259.83	95.53%	533.88	749.51	40.39%
CIS	150.18	129.3	-13.9%	490.1	536.88	9.54%
OTHERS	15.52	14.05	-9.45%	48.52	75.01	54.6%

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	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
IRON AND STEEL	799.91	1267.44	58.45%	3195.1	4210.11	31.77%
PRODUCTS OF IRON AND STEEL	996.8	943.88	-5.31%	3485.18	3440.98	-1.27%
Sub Total	1796.72	2211.32	23%	6680.28	7651.09	15%

Source : DGCI&S

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

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
Copper and products made of copper	238.28	412.15	72.97%	798.07	1468.45	84%
Lead and products made of Lead	93.95	57.06	-39.26%	345.83	276.23	-20.13%
Nickel and products made of Nickel	16.02	19.15	19.49%	54.95	70.93	29.09%
Other Non Ferrous Metals and their products	93.48	93.88	0.42%	351.7	397.44	13%
Tin and products made of Tin	3.51	6.33	80.08%	9.7	26.34	171.47%
Zinc and products made of zinc	47.57	74.55	56.72%	199.91	310.75	55.44%
Sub Total	492.81	663.12	35%	1760.17	2550.14	45%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor	726.18	981.47	35.15%	2772.72	3886.54	40.17%
IC Engines and Parts	379.29	388.35	2.39%	1417.01	1415.76	-0.09%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	800.77	869.83	8.62%	2952.43	3099	4.96%
Machine Tools	108.17	80.09	-25.96%	304.41	293.92	-3.45%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	276.54	285.37	3.19%	1029.78	1050.57	2.02%
Nuclear Reactors, Industrial Boilers and Parts	70.64	101.03	43.03%	308.23	363.86	18.05%
Pumps of all types	144.21	145.58	0.95%	524.32	552.09	5.3%
Sub Total	2505.81	2851.73	13.8%	9308.91	10661.75	14.53%

Source : DGCI&S

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

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
Electric Machinery and Equipment	1431.26	1811.13	26.54%	5230.62	6396.88	22.3%

Source : DGCI&S

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

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
AUTO COMPONENTS/PARTS	791.241	822.666	3.97%	2880.519	3052.618	5.97%
AUTO TYRES AND TUBES	272.925	281.456	3.13%	1074.049	1123.347	4.59%
Motor Vehicle/cars	837.07	986.56	17.86%	3336.256	3862.696	15.78%
Two and Three Wheelers	346.182	437.177	26.29%	1214.785	1563.653	28.72%
Sub Total	2247.417	2527.858	12.48%	8505.609	9602.314	12.89%

Source : DGCI&S

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

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
Aircrafts, Spacecrafts and Parts	151.71	137.68	-9.24%	538.22	618.79	307.89%
Ships, Boats and Floating Structures	313.25	341.49	9.02%	1612.41	2717	767.37%
Sub Total	464.95	479.18	3.06%	2150.63	3335.79	55.11%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	July-2025	July-2026	Growth	April-July 2023-24	April-July 2024-25	Growth
BICYCLE AND PARTS	41.17	43.61	5.93%	153.12	166.16	8.51%
Hand Tools, Cutting Tools and Implements made of Metals	93.57	105.19	12.42%	355.93	374.5	5.22%
Medical and Scientific Instruments	246.64	279.93	13.5%	952.18	1010.82	6.16%
OFFICE EQUIPMENTS	36.05	29.36	-18.54%	125.06	113.45	-9.28%
OTHER CONSTRUCTION MACHINERY	283.12	351.09	24.01%	1117.45	1281.89	14.72%
OTHER MISC. ITEMS	445.09	557.75	25.31%	1741.06	1951.96	12.11%
PRIME MICA AND MICA PRODUCTS	1.92	3.33	73.94%	10.78	11.18	3.7%
Railway Transport and Parts	36.42	43.54	19.57%	138.24	233.21	68.7%
PROJECT GOODS	0.21	0.16	-22.03%	0.42	0.61	46.69%
OTHR RUBBER PRODCT EXCPT FOOTW	171.46	185.46	8.17%	631.63	675.22	6.9%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-July 2023-24	April-July 2024-25	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	1351.8	1737.5	29%
	U ARAB EMTS	451.51	480.96	7%
	ITALY	446.65	364.54	-18%
	U K	256.56	352.85	38%
	NEPAL	273.45	322.25	18%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	CHINA P RP	102.1	420.05	311%
	SAUDI ARAB	271.13	410.5	51%
	U S A	252.36	247.2	-2%
	KOREA RP	133.11	147.07	10%
	U ARAB EMTS	104.59	135.63	30%
Industrial Machinery
	U S A	1920.74	2122.1	10%
	CHINA P RP	397.71	381.54	-4%
	KOREA RP	282	377.46	34%
	GERMANY	368.29	375.97	2%
	AUSTRALIA	147.55	332.56	125%
Electrical Machinery
	U S A	1064.02	1148.92	8%
	SINGAPORE	512.53	728.31	42%
	U K	582.98	511.51	-12%
	GERMANY	373	475.09	27%
	MALAYSIA	110.93	440.05	297%
Automobiles
	U S A	812.81	894.24	10%
	MEXICO	615.06	718.95	17%
	SOUTH AFRICA	559.75	649.73	16%
	SAUDI ARAB	532.12	421.48	-21%
	JAPAN	362.4	367.18	1%
Aircrafts and Spacecraft parts and products
	U S A	161.3	197.9	23%
	FRANCE	91.81	100.64	10%
	MALDIVES	0.52	60.08	11526%
	U K	59.26	56.76	-4%
	GERMANY	33.56	25.72	-23%
Ships Boats and Floating products and parts
	U ARAB EMTS	467.8	972.38	108%
	SINGAPORE	690.33	575.27	-17%
	SRI LANKA DSR	89.13	444.17	398%
	OMAN	65.93	171.45	160%
	EGYPT A RP	0	158.1	N/A
Project Goods
	U S A	0.1	0.13	30%
	SUDAN	0	0.1	N/A
	FRANCE	0.03	0.08	167%
	BELGIUM	0	0.04	N/A
	ANGOLA	0	0.03	N/A
Other Rubber Product Except Footwear
	U S A	147.39	137.59	-7%
	GERMANY	43.16	44.78	4%
	CHINA P RP	26.09	32.53	25%
	THAILAND	15.53	27.84	79%
	U ARAB EMTS	25.68	24.77	-4%
Other engineering products
	U S A	1109.8	1159.08	4%
	U K	220.76	265.75	20%
	GERMANY	243.01	253.71	4%
	U ARAB EMTS	240.85	190.32	-21%
	BRAZIL	136.83	147.52	8%

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	9002.263806	19.41%	91% share covered by top 12 states
Gujarat	7199.068705	15.52%
Tamil Nadu	7180.333669	15.48%
Karnataka	3863.537776	8.33%
Haryana	3161.612301	6.82%
Odisha	3068.907955	6.62%
Delhi	1962.643404	4.23%
Uttar Pradesh	1581.200954	3.41%
West Bengal	1559.072079	3.36%
Rajasthan	1296.695018	2.8%
Andhra Pradesh	1253.307249	2.7%
Punjab	1005.792055	2.17%
Telangana	902.1049198	1.94%
Madhya Pradesh	743.8499594	1.6%
DADRA,NH,DAMAN,DIU	666.649629	1.44%
Kerala	418.6473398	0.9%
Uttarakhand	374.7063559	0.81%
Chhattisgarh	324.5452778	0.7%
JHARKHAND	284.7706012	0.61%
Goa	266.6275854	0.57%
Bihar	84.34716688	0.18%
Puducherry	66.91154219	0.14%
Himachal Pradesh	66.54811583	0.14%
CHANDIGARH	23.2553949	0.05%
Assam	11.18631801	0.02%
TRIPURA	0.89954665	0%
MANIPUR	0.447117976	0%
SIKKIM	0.339378285	0%
ARUNACHAL PRADESH	0.243958608	0%
Meghalaya	0.154116906	0%
LADAKH	0.011519783	0%
LAKSHADWEEP	0.002140265	0%
NAGALAND	0.000847883	0%
MIZORAM	0.00046254	0%
ANDAMAN AND NICOBAR ISLANDS	0	0%
Jammu & Kashmir		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 %
WESTERN REGION	15028.79	17878.46	18.96%
NORTHERN REGION	8264.44	9472.47	14.62%
SOUTHERN REGION	12360.39	13684.84	10.72%
EASTERN REGION	3572.11	5334.91	49.35%
Grand Total	39225.72	46370.68	18.21%

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
May 2026	24.48	5.5
June 2026	20.90	7.8

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
June	85.90	94.97	10.56	Depreciation	-0.66	Appreciation
July	86.11	95.82	11.28	Depreciation	0.90	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	June	July
Engineering Export	10.4	12.31	11.48	12.24
Engineering Import	14.4	14.36	14.19	15.66
Trade Balance	-4.0	-2.05	-2.71	-3.42

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.