Accounting for 3% of the total GDP, the Indian engineering sector forms a crucial backbone of the Indian economy. Engineering exports in fiscal 2022-23 was recorded at a lower USD 107.04 billion from an all-time high of USD 112.16 billion in fiscal 2021-22.
Despite of a downfall in engineering shipment, one good thing was the overachievement of target in 2022-23 too. The engineering sector is the largest contributor to India’s overall exports with a share of 24% the sector and also contributes approximately 40% of the total manufacturing export. During the fiscal, engineering exports conceded year-on-year decline in all months from July 2022 to March 2023 barring November 2022. Exports of Iron and Steel, the highest contributor in India's engineering shipment was down significantly due to imposition of 15% export tax by the domestic government in May 2022 which was later withdrawn in November 2022. On the global front, demand for steel was subdued due to slowdown in developed region and also in emerging economies like China. Excluding Iron and Steel, Indian engineering exports rather achieved 4.91% growth in 2022-23 over the previous fiscal.
Other than the adversity on steel exports, geo-political crisis in CIS region led by Russia-Ukraine war, economic slowdown in the North-East Asia especially China, crisis in the South-East Asia and slowdown in Europe are the major factors responsible for lower shipment of engineering goods from India.
Source: DGCI&S
US$ Million
Product panels |
Mar-22 |
Mar-23 |
Growth |
2021-22 |
2022-23 |
Growth |
Iron and Steel and Products made of Iron and Steel |
||||||
Iron and Steel |
1901.2 |
1373.0 |
-28% |
22906.2 |
13396.0 |
-42% |
Products of Iron and Steel |
939.3 |
925.2 |
-1% |
8785.6 |
9768.0 |
11% |
Sub Total |
1901.2 |
1373.0 |
-28% |
22906.2 |
13396.0 |
-42% |
Non-Ferrous Metals and Products made of Non-Ferrous Metals |
||||||
Copper and products |
218.0 |
255.3 |
17% |
2429.6 |
1848.5 |
-24% |
Aluminium and products |
1209.8 |
719.5 |
-41% |
10641.6 |
8877.0 |
-17% |
Zinc and products |
164.6 |
114.9 |
-30% |
1002.9 |
1324.8 |
32% |
Nickel and products |
27.8 |
21.4 |
-23% |
127.0 |
204.1 |
61% |
Lead and products |
73.2 |
74.1 |
1% |
543.1 |
481.7 |
-11% |
Tin and products |
1.4 |
0.5 |
-62% |
19.2 |
11.4 |
-41% |
Other Non-Ferrous Metals |
72.8 |
64.2 |
-12% |
802.1 |
761.8 |
-5% |
Sub Total |
1767.7 |
1249.9 |
-29% |
15565.5 |
13509.3 |
-13% |
Industrial Machinery |
||||||
Industrial Machinery like Boilers, parts, etc |
57.1 |
46.8 |
-18% |
596.7 |
625.9 |
5% |
IC Engines and Parts |
321.9 |
334.4 |
4% |
3358.3 |
3627.7 |
8% |
Pumps of all types |
108.9 |
119.0 |
9% |
1224.9 |
1319.3 |
8% |
Air condition and Refrigerators |
168.5 |
178.0 |
6% |
1472.9 |
1624.9 |
10% |
Industrial Machinery for dairy, food processing , textiles etc |
785.1 |
764.0 |
-3% |
7999.9 |
8517.6 |
6% |
Machine Tools |
63.7 |
61.5 |
-4% |
680.2 |
693.8 |
2% |
Machinery for Injecting moulding, valves and ATMs |
187.4 |
246.7 |
32% |
1929.5 |
2369.0 |
23% |
Sub Total |
1692.7 |
1750.4 |
3% |
17262.2 |
18778.1 |
9% |
Electrical Machinery |
||||||
Electrical Machinery |
1178.9 |
1065.1 |
-10% |
10349.3 |
10970.2 |
6% |
Auto and auto parts |
||||||
Motor Vehicle/cars |
740.0 |
856.6 |
16% |
7573.3 |
8718.5 |
15% |
Two and Three Wheelers |
270.2 |
242.8 |
-10% |
2985.3 |
2787.9 |
-7% |
Auto Components/Part |
641.4 |
673.2 |
5% |
6876.1 |
7273.7 |
6% |
Auto Tyres and Tubes |
287.6 |
238.5 |
-17% |
2922.7 |
2966.8 |
2% |
Sub Total |
1939.3 |
2011.2 |
4% |
20357.4 |
21746.8 |
7% |
Aircraft, spacecraft and parts and ships, boats and floating structures |
||||||
Aircrafts and Spacecraft parts and products |
114.3 |
124.7 |
9% |
1142.1 |
1428.2 |
25% |
Ships Boats and Floating products and parts |
312.2 |
362.4 |
16% |
3600.7 |
4035.5 |
12% |
Other engineering products |
||||||
Medical and Scientific instruments |
170.5 |
224.7 |
32% |
1727.9 |
2209.1 |
28% |
Railway Transport |
43.6 |
22.4 |
-49% |
416.1 |
371.1 |
-11% |
Hand Tools & Cutting Tools |
86.5 |
83.0 |
-4% |
986.3 |
952.4 |
-3% |
Bicycle & Parts |
43.2 |
36.1 |
-16% |
460.6 |
395.8 |
-14% |
Cranes Lifts & Winches |
62.0 |
92.1 |
49% |
650.6 |
812.9 |
25% |
Office Equipments |
19.8 |
35.9 |
82% |
209.6 |
297.6 |
42% |
Other Construction Machinery |
194.7 |
238.3 |
22% |
2113.3 |
2410.5 |
14% |
Prime Mica & Mica Products |
1.7 |
2.3 |
30% |
32.0 |
27.4 |
-14% |
Project Goods |
0.14 |
0.12 |
-18% |
3.78 |
2.00 |
-47% |
Other Rubber Product Except Footwear |
159.8 |
151.8 |
-5% |
1706.1 |
1712.4 |
0% |
Other Misc. Items |
388.5 |
442.1 |
14% |
3888.1 |
4216.8 |
8% |
Total engineering exports |
11016.1 |
10191.0 |
-7.49% |
112163.4 |
107040.1 |
-4.57% |
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 7% in 2022-23, while the proportion of capital goods increased considerably from 12% in 1956-57 to 59% in 2022-23.
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: