Accounting for 3% of the total GDP, the Indian engineering sector forms a crucial backbone of the Indian economy. India’s engineering exports reached a remarkable success in 2021-22 outshining the target of USD 107 billion and achieving a record high of US$ 112.1 billion compared to US$ 76.7 billion in 2020-21.The engineering sector is the largest contributor to India’s overall exports with a share of 26.7% the sector and also contributes approximately 40% of the total manufacturing export. Despite the remarkable success of engineering exports, there are some constraints on both global as well as domestic front that may act as a deterrent in maintaining the current trend of exports.
Source: DGCI&S
US$ Million
Product panels |
Mar-21 |
Mar-22 |
Growth |
2020-21 |
2021-22 |
Growth |
Iron and Steel and Products made of Iron and Steel |
||||||
Iron and Steel |
1713.35 |
1944.36 |
13.50% |
12123.89 |
22895.39 |
88.80% |
Products of Iron and Steel |
719.07 |
958.93 |
33.40% |
6557.31 |
8793.82 |
34.10% |
Sub Total |
2432.42 |
2903.29 |
19.40% |
18681.2 |
31689.21 |
69.60% |
Non-Ferrous Metals and Products made of Non-Ferrous Metals |
||||||
Copper and products |
285.01 |
223.36 |
-21.60% |
1444.12 |
2429.25 |
68.20% |
Aluminium and products |
645.26 |
1103.36 |
71.00% |
5797.39 |
10526.48 |
81.50% |
Zinc and products |
66.69 |
168.49 |
152.60% |
742.63 |
1005.99 |
35.40% |
Nickel and products |
5.33 |
28.49 |
434.20% |
56.34 |
127.59 |
126.40% |
Lead and products |
28.12 |
74.87 |
166.30% |
348.47 |
544.12 |
56.10% |
Tin and products |
2.12 |
1.45 |
-31.40% |
9.94 |
19.23 |
93.50% |
Other Non-Ferrous Metals |
73.56 |
74.49 |
1.30% |
575.39 |
802.55 |
39.40% |
Sub Total |
1106.09 |
1674.51 |
51.40% |
8974.28 |
15455.21 |
72.20% |
Industrial Machinery |
||||||
Industrial Machinery like Boilers, parts, etc |
678.41 |
806.75 |
18.90% |
5524 |
8011.09 |
45.00% |
IC Engines and Parts |
291.84 |
328.2 |
12.50% |
2493.57 |
3362.82 |
34.80% |
Pumps of all types |
102.59 |
111.28 |
8.50% |
883.51 |
1225.9 |
38.70% |
Air condition and Refrigerators |
124.1 |
172.45 |
39.00% |
1069.63 |
1467.09 |
37.10% |
Industrial Machinery for dairy, food processing , textiles etc |
678.41 |
806.75 |
18.90% |
5524 |
8011.09 |
45.02% |
Machine Tools |
53.48 |
65.04 |
21.60% |
437.03 |
680.54 |
55.70% |
Machinery for Injecting moulding, valves and ATMs |
165.06 |
191.5 |
16.00% |
1598.36 |
1930.31 |
20.70% |
Sub Total |
2093.89 |
2481.97 |
18.50% |
17530.1 |
24688.84 |
40.80% |
Electrical Machinery |
||||||
Electrical Machinery |
841.3 |
1207.88 |
43.60% |
8125.69 |
10370.58 |
27.60% |
Auto and auto parts |
||||||
Motor Vehicle/cars |
534.29 |
757.14 |
41.70% |
5105.69 |
7582.06 |
48.50% |
Two and Three Wheelers |
268 |
276.51 |
3.20% |
2057.47 |
2986.21 |
45.10% |
Auto Components/Part |
616.68 |
656.04 |
6.40% |
4958.23 |
6879.07 |
38.70% |
Auto Tyres and Tubes |
222.2 |
294.1 |
32.30% |
1968.2 |
2924.3 |
48.60% |
Sub Total |
1641.1 |
1983.7 |
20.9 |
14089.5 |
20371.6 |
44.6 |
Aircraft, spacecraft and parts and ships, boats and floating structures |
||||||
Aircrafts and Spacecraft parts and products |
105.78 |
117.32 |
10.90% |
1165.53 |
1157.77 |
-0.70% |
Ships Boats and Floating products and parts |
647.44 |
320.3 |
-50.50% |
4488.15 |
3587.33 |
-20.10% |
Other engineering products |
||||||
Medical and Scientific instruments |
143.08 |
175.78 |
22.90% |
1381.45 |
1731.67 |
25.40% |
Railway Transport |
37.94 |
44.59 |
17.50% |
172.91 |
416.54 |
140.90% |
Hand Tools & Cutting Tools |
80.36 |
88.42 |
10.00% |
715.36 |
986.64 |
37.90% |
Bicycle & Parts |
40.3 |
44.11 |
9.50% |
349.66 |
460.74 |
31.80% |
Cranes Lifts & Winches |
60.15 |
63.71 |
5.90% |
478.93 |
651.93 |
36.10% |
Office Equipments |
19.71 |
20.25 |
2.80% |
151.1 |
209.74 |
31.80% |
Other Construction Machinery |
172.15 |
199.1 |
15.70% |
1251.36 |
2114.62 |
36.10% |
Prime Mica & Mica Products |
2.42 |
1.78 |
-26.30% |
24.11 |
31.92 |
38.80% |
Project Goods |
317.36 |
398.94 |
25.70% |
2830.2 |
3893.05 |
69.00% |
Other Rubber Product Except Footwear |
143.08 |
175.78 |
22.90% |
1381.45 |
1731.67 |
25.40% |
Other Misc. Items |
37.94 |
44.59 |
17.50% |
172.91 |
416.54 |
140.90% |
Total engineering exports |
9298.4 |
11131.7 |
19.7 |
76719.6 |
112102.3 |
46.10% |
Source: DGCI&S
EEPC India played instrumental role in transformation of India’s engineering export basket. There has been a Gradual shift towards capital goods and heavy machinery.
Today, out of total engineering exports, the proportion of consumer durables decreased from 34% in 1956-57 to 5% in 2021-22, while the proportion of capital goods increased considerably from 12% in 1956-57 to 53% in 2021-22.
India’s Capital Goods manufacturing industry serves as a strong base for Construction, Infrastructure and Consumer goods. Turnover of the capital goods industry was US 92 billion in 2019 and is forecast to reach US 115.17 billion by 2025. The capital goods industry is divided into 10 sub-sectors where Electrical equipment is the largest sub-sector.
During the nascent stage, Indian engineering exports were mainly confined to Asia and to a small extent to Africa. Over the years, the scenario has completely changed and as of date, about 38% of total engineering exports are made to EU and North America. A table showing region wise exports share percentage out of total engineering exports is given below: