India's engineering exports started FY 2025-26 on a positive note, recording a sharp year-on-year growth of 11.28% in April 2025.

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

After starting the new fiscal with a 4.49% year-on-year decline in April, Indian engineering exports in May 2024 bounced back to growth and then recorded double-digit growth in June 2024 at 10.27% year-on-year. Cumulative exports growth also accelerated in Apr-Jun 2024-25 with 4.34% growth year-on-year. Share of engineering in India's total merchandise exports increased to 26.68% in June 2024 from 26.19% in May 2024 and 24.76% in April 2024. Cumulative share stood at 25.17%. Growth in engineering exports in June 2024 was attributed to decent rise in shipments of Electrical machinery, Motor vehicles/Cars, Products of iron and steel, Auto components and parts, and Industrial machinery among others. Exports of iron and steel however dropped by 33% year-on-year during Apr-Jun 2024-25 due to tough competition from cheaper Chinese steel, drop in domestic production and increase in domestic demand.

Trade Flow Export figures(in $ billion) Growth (%)
Jun-2024 Jun-2025 Apr-Jun 2023-24 Apr-Jun 2024-25 Jun-2025 over Jun-2024 Apr-Jun 2023-24 over Apr-Jun 2024-25
Engineering exports 8.55 9.51 8.55 9.51 11.28% 11.28%
Overall merchandise exports 35.30 38.49 35.30 38.49 9.02% 9.02%
Share of engineering (%) 24.21% 24.71% 24.21% 24.71% --- ---
Service Exports 30.18 35.31 30.18 35.31 17.00% 17.00%

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 8547.61 9511.46 11.28

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-April 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 June  in the new fiscal 2024-25 over same period last fiscal as well as in cumulative terms during April-June 2024-25 vis-à-vis April-June 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 Jun-2024 Jun-2025 Growth (%) April-April 2023-24 April-April 2024-25 Growth (%)
U S A 1417.98 1661.45 17.17% 1417.98 1661.45 17.17%
U ARAB EMTS 392.53 538.82 37.27% 392.53 538.82 37.27%
SINGAPORE 375.63 498.51 32.71% 375.63 498.51 32.71%
SAUDI ARAB 435.75 394.44 -9.48% 435.75 394.44 -9.48%
U K 300.98 335.3 11.4% 300.98 335.3 11.4%
GERMANY 323.91 333.24 2.88% 323.91 333.24 2.88%
ITALY 309.78 267.78 -13.56% 309.78 267.78 -13.56%
KOREA RP 209.33 253.76 21.23% 209.33 253.76 21.23%
MEXICO 296.45 243.84 -17.75% 296.45 243.84 -17.75%
JAPAN 173.66 231.34 33.22% 173.66 231.34 33.22%
BRAZIL 165.56 211.6 27.81% 165.56 211.6 27.81%
NEPAL 171.76 207.58 20.86% 171.76 207.58 20.86%
SOUTH AFRICA 130.68 197.67 51.26% 130.68 197.67 51.26%
TURKEY 219.2 192.53 -12.17% 219.2 192.53 -12.17%
BANGLADESH PR 148.19 166.52 12.37% 148.19 166.52 12.37%
CHINA P RP 210.46 164.78 -21.7% 210.46 164.78 -21.7%
FRANCE 152.89 160.92 5.25% 152.89 160.92 5.25%
THAILAND 152.58 158.74 4.03% 152.58 158.74 4.03%
NETHERLAND 137.74 152.82 10.94% 137.74 152.82 10.94%
BELGIUM 147.84 145.71 -1.44% 147.84 145.71 -1.44%
PHILIPPINES 145.38 145.02 -0.25% 145.38 145.02 -0.25%
AUSTRALIA 92.85 132.15 42.33% 92.85 132.15 42.33%
SPAIN 97.23 126.9 30.52% 97.23 126.9 30.52%
INDONESIA 118.79 121.07 1.92% 118.79 121.07 1.92%
VIETNAM SOC REP 116.45 117.4 0.81% 116.45 117.4 0.81%
Total engineering exports to top 25 countries 6443.58 7159.87 11.12% 6443.58 7159.87 11.12%
Total engineering exports 8547.61 9511.46 11.28% 8547.61 9511.46 11.28%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

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

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

(US$ million)

Regions Jun-2024 Jun-2025 Growth (%) April-April 2023-24 April-April 2024-25 Growth (%)
NORTH AMERICA 1825.88 2005.4 9.83% 1825.88 2005.4 9.83%
EUROPEAN UNION 1597.07 1655.42 3.65% 1597.07 1655.42 3.65%
WANA 1140.83 1342.5 17.68% 1140.83 1342.5 17.68%
ASEAN 1021.35 1154.18 13.01% 1021.35 1154.18 13.01%
N E ASIA 671.05 748.64 11.56% 671.05 748.64 11.56%
SSA( Sub Saharan Africa) 522.34 687.55 31.63% 522.34 687.55 31.63%
OTHER EUROPE 579.41 574.35 -0.87% 579.41 574.35 -0.87%
LATIN AMERICA 444.68 565.93 27.27% 444.68 565.93 27.27%
SOUTH ASIA 476.75 504.08 5.73% 476.75 504.08 5.73%
OCEANIA 105.5 143.94 36.44% 105.5 143.94 36.44%
CIS 161.96 118.83 -26.63% 161.96 118.83 -26.63%
OTHERS 0.78 10.64 1261.07% 0.78 10.64 1261.07%

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 June 2024 vis-à-vis June 2023 as well as the cumulative exports for April-June 2024-25 vis-à-vis April-June 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 April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
IRON AND STEEL 843.8 851.77 0.95% 843.8 851.77 0.95%
PRODUCTS OF IRON AND STEEL 730.88 771.7 5.59% 730.88 771.7 5.59%
Sub Total 1574.68 1623.47 3% 1574.68 1623.47 3%

Source : DGCI&S

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

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
Aluminium and products made of Aluminium 529.58 494.92 -6.54% 529.58 494.92 -6.54%
Copper and products made of copper 127.7 182.16 42.64% 127.7 182.16 42.64%
Lead and products made of Lead 63.14 75.98 20.34% 63.14 75.98 20.34%
Nickel and products made of Nickel 13.24 13.45 1.6% 13.24 13.45 1.6%
Other Non Ferrous Metals and their products 60.82 81.33 33.72% 60.82 81.33 33.72%
Tin and products made of Tin 1.22 1.72 40.95% 1.22 1.72 40.95%
Zinc and products made of zinc 66.65 50.54 -24.18% 66.65 50.54 -24.18%
Sub Total 862.35 900.1 4% 862.35 900.1 4%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor 136.71 187.61 37.23% 136.71 187.61 37.23%
IC Engines and Parts 287.24 325.33 13.26% 287.24 325.33 13.26%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 685.46 696.11 1.55% 685.46 696.11 1.55%
Machine Tools 59.96 65.92 9.94% 59.96 65.92 9.94%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 206.36 246.72 19.56% 206.36 246.72 19.56%
Nuclear Reactors, Industrial Boilers and Parts 65.84 113.85 72.93% 65.84 113.85 72.93%
Pumps of all types 108.02 120.4 11.46% 108.02 120.4 11.46%
Sub Total 1549.58 1755.95 13.32% 1549.58 1755.95 13.32%

Source : DGCI&S

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

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
Electric Machinery and Equipment 1031.38 1192.28 15.6% 1031.38 1192.28 15.6%

Source : DGCI&S

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

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
AUTO COMPONENTS/PARTS 605.24 653.321 7.94% 605.24 653.321 7.94%
AUTO TYRES AND TUBES 253.217 256.893 1.45% 253.217 256.893 1.45%
Motor Vehicle/cars 602.717 822.65 36.49% 602.717 822.65 36.49%
Two and Three Wheelers 248.305 262.651 5.78% 248.305 262.651 5.78%
Sub Total 1709.48 1995.515 16.73% 1709.48 1995.515 16.73%

Source : DGCI&S

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

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
Aircrafts, Spacecrafts and Parts 280.64 128.45 -54.23% 280.64 128.45 -54.23%
Ships, Boats and Floating Structures 265.15 509.11 92.01% 265.15 509.11 92.01%
Sub Total 545.79 637.56 16.81% 545.79 637.56 16.81%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels April-2024 April-2025 Growth April-April 2023-24 April-April 2024-25 Growth
BICYCLE AND PARTS 28.06 36.2 29% 28.06 36.2 29%
Hand Tools, Cutting Tools and Implements made of Metals 77.57 88.77 14.44% 77.57 88.77 14.44%
OFFICE EQUIPMENTS 18.58 24.28 30.68% 18.58 24.28 30.68%
OTHER CONSTRUCTION MACHINERY 242.92 266.39 9.66% 242.92 266.39 9.66%
OTHER MISC. ITEMS 448.22 502.38 12.08% 448.22 502.38 12.08%
PRIME MICA AND MICA PRODUCTS 2.24 2.84 27.1% 2.24 2.84 27.1%
Railway Transport and Parts 31.16 30.48 -2.17% 31.16 30.48 -2.17%
PROJECT GOODS 0.11 0.06 -49.34% 0.11 0.06 -49.34%
OTHR RUBBER PRODCT EXCPT FOOTW 136.89 147.49 7.74% 136.89 147.49 7.74%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-April 2023-24 April-April 2024-25 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 256.3 367.02 43%
ITALY 183.87 117.98 -36%
U ARAB EMTS 79.27 100.73 27%
NEPAL 57.7 83 44%
BELGIUM 83.19 76.46 -8%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
U S A 125.32 132.35 6%
KOREA RP 100.96 97.14 -4%
SAUDI ARAB 36.21 77.79 115%
TAIWAN 20.61 46.79 127%
JAPAN 51.73 42.01 -19%
Industrial Machinery
U S A 313.83 365.45 16%
U ARAB EMTS 74.19 116.59 57%
GERMANY 80.06 75.63 -6%
SAUDI ARAB 44.99 67.63 50%
CHINA P RP 59.38 66.05 11%
Electrical Machinery
U S A 227.66 252.13 11%
SINGAPORE 112.34 121.52 8%
U K 57.28 117.09 104%
KOREA RP 47.4 80.94 71%
JAPAN 22.94 54.18 136%
Automobiles
U S A 187.84 193.47 3%
SAUDI ARAB 132.36 146.11 10%
MEXICO 164.47 133.58 -19%
SOUTH AFRICA 78.97 129.44 64%
JAPAN 53.95 91.12 69%
Aircrafts and Spacecraft parts and products
U S A 34.12 36.38 7%
U K 14.89 14.34 -4%
FRANCE 14.48 13.6 -6%
BELGIUM 0.08 12.19 15383%
U ARAB EMTS 40.26 9.49 -76%
Ships Boats and Floating products and parts
SINGAPORE 170.66 312.11 83%
U ARAB EMTS 38.02 107.7 183%
OMAN 0.05 39.39 71936%
SAUDI ARAB 0 20.79 N/A
NORWAY 33.42 10.77 -68%
Project Goods
SAUDI ARAB 0 0.02 964%
ITALY 0 0.01 N/A
NIGERIA 0 0.01 1418%
CONGO D. REP. 0 0.01 N/A
CHINA P RP 0 0 N/A
Other Rubber Product Except Footwear
U S A 30.25 32.22 6%
GERMANY 9.62 9.4 -2%
U ARAB EMTS 4.86 6.09 25%
BRAZIL 4.35 6.03 39%
CHINA P RP 5.34 6 12%
Other engineering products
U S A 185.32 211.77 14%
PHILIPPINES 95.72 59.34 -38%
U K 38.27 44.96 17%
GERMANY 33.3 44.02 32%
U ARAB EMTS 31.44 43 37%

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 93 % of India’s exports is contributed by the listed 12 states. Within this almost 54.7 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together.

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

(US$ million)

Top States Cumulative Export April-April 2024-25 Share % Remark
Maharashtra 22546.4 19.65% 91.5% share covered by top 12 states
Tamil Nadu 18108.6 15.78%
Gujarat 16590.5 14.46%
Telangana 7536.2 6.57%
Karnataka 7277.3 6.34%
Haryana 6764.5 5.9%
Odisha 5910.1 5.15%
Delhi 4684.5 4.08%
Uttar Pradesh 4348.7 3.79%
Andhra Pradesh 4319.4 3.77%
West Bengal 3523.7 3.07%
Rajasthan 3375.7 2.94%
Punjab 2661.3 2.32%
Madhya Pradesh 2013.1 1.75%
Daman & Diu And Dadra & Nagar Haveli 1242 1.08%
Kerala 840.9 0.73%
Jharkhand 807.2 0.7%
Chhattisgarh 754.6 0.66%
Uttarakhand 549.2 0.48%
Goa 405.8 0.35%
Puducherry 180.2 0.16%
Himachal Pradesh 124.8 0.11%
Bihar 61.1 0.05%
Chandigarh 51.7 0.05%
Assam 19.4 0.02%
Tripura 10.9 0.01%
Jammu & Kashmir 10.2 0.01%
Arunachal Pradesh 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 37.7 percent share. Tamil Nadu from the Southern Region has improved its export performance and it ranked second after Maharashtra, while Gujarat and Karnataka ranked third and fourth during April-June 2024-25.

Note : DGCI&S state wise data available till Jun-2025

Table 7: Region wise exports from India till Jun-2025

Value in US$ million

Region Jun-2024($Mn) Jun-2025($Mn) Growth % Apr-Jun 2023-24($Mn) Apr-Jun 2024-25 ($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 22571.6 -0.35%
Grand Total 11285.7 8876.5 -21.35% 109315.2 114721.9 4.95%

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 two month of fiscal 2024-25 also saw manufacturing output growth and engineering exports growth moving in the same direction. April 2024 saw engineering exports declined from a growth in Mar 2024 and manufacturing output growth decelerated. The month of May 2024 witnessed just the opposite. Engineering exports bounced back to growth path and manufacturing output growth accelerated.

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

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during June 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 June 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 June 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
Month 83.41 85.56 2.58 Depreciation -1.25 Appreciation

Rupee depreciation vis-à-vis the US Dollar continued in the new fiscal 2024-25 both on a year-on-year basis and on a month-on-month basis. Rupee even hit a low of 83.54 during June 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 and US fed policy 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

TO CONCLUDE...

India’s engineering exports recorded growth in two consecutive months of the new fiscal 2024-25 despite starting it with a decline. The growth in exports was mainly machinery and automobile sector. However, both ferrous and non-ferrous metal sectors continued to record decline in exports mainly due to tepid global demand and also China offering more competitive prices in the global market. In terms of destinations, our exports increased in WANA region, other Europe, CIS and North America. The FTA with UAE has proved beneficial for the engineering export community and we feel that the ongoing FTA negotiations with GCC once concluded would further favour the community. The global trade has also been growing after a dismal performance last year. The global goods trade in the first quarter of 2024 increased by 1% on a year-on-year basis and is expected to rise further in the coming months. This would be favourable for India exporting community too. It is also important to mention the significant government support that has assisted the community. The recently announced Union Budget of 2024-25 also announced some very favourable measures for the upliftment of the MSMEs in our country. Other moves announced in the budget such as setting up E-Commerce export hubs in PPP model or favourable policies regarding the customs duty would be of immense help to the exporting community. Investment-grade energy audits across 60 traditional industry clusters will enhance operational efficiency and reduce carbon emissions, aligning with the EU's CBAM requirements.  The above initiatives will play significant role in bolstering the position of Indian engineering industry