India’s Engineering Export performance

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

Panel wise India’s engineering exports in 2021-22

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

Transformation of engineering products

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.

Diversification of markets

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: