India’s Engineering Export performance
Accounting for 3% of the total GDP, the Indian engineering sector forms a crucial backbone of the Indian economy. The engineering sector is the largest contributor to India’s overall exports with a share of 24% and also contributes approximately 40% of the total manufacturing export. Engineering exports in fiscal 2023-24 grew by 2.13% and reached at US$ 109.32 billion, which is contrary to the merchandise export trend which declined by 3.11%. It performed well given the weak global trade trends, dwindling demand, forex crisis and geopolitical conflicts.
The monthly engineering export trend became positive since December 2023 and exhibited a healthy double-digit growth in both February and March – in March the y-o-y growth was 10.7%, recording the highest monthly exports at USD 11.28 billion. The recovery in annual engineering exports was mainly due to surge in exports to WANA (27%), N E Asia (11.6%), CIS (65%) and Oceania (2.6%). Therefore, the FTAs with UAE and Australia can be deemed effective. In fact, March 2024 recorded positive Y-o-Y growth for almost all regions including North America, EU, WANA, ASEAN, NE ASIA, CIS and South Asia.
Source: DGCI&S
Panel wise India’s engineering exports in 2023-24
US$ Million
|
Product panels |
Mar-23 |
Mar-24 |
Growth |
2022-23 |
2023-24 |
Growth |
|
Ferrous |
||||||
|
Iron and Steel |
1376.4 |
1157.3 |
-16% |
13397.5 |
11859.4 |
-11% |
|
Products of Iron and Steel |
926.1 |
994.8 |
7% |
9768.6 |
9892.9 |
1% |
|
Sub Total |
2302.6 |
2152.2 |
-7% |
23166.0 |
21752.2 |
-6% |
|
Non-ferrous |
||||||
|
Copper and products |
255.3 |
243.2 |
-5% |
1848.5 |
2526.2 |
37% |
|
Aluminium and products |
719.5 |
577.5 |
-20% |
8877.1 |
7681.0 |
-13% |
|
Zinc and products |
114.9 |
46.8 |
-59% |
1324.8 |
727.4 |
-45% |
|
Nickel and products |
21.4 |
20.4 |
-5% |
204.1 |
167.5 |
-18% |
|
Lead and products |
74.1 |
101.1 |
37% |
481.7 |
780.5 |
62% |
|
Tin and products |
0.5 |
1.9 |
247% |
11.4 |
16.1 |
41% |
|
Other Non-Ferrous Metals |
64.1 |
70.4 |
10% |
761.7 |
748.1 |
-2% |
|
Sub Total |
1249.9 |
1061.3 |
-15% |
13509.3 |
12646.8 |
-6% |
|
Industrial Machinery |
||||||
|
Industrial Machinery like Boilers, parts, etc |
46.8 |
84.4 |
80% |
626.5 |
741.5 |
18% |
|
IC Engines and Parts |
334.5 |
334.8 |
0% |
3627.9 |
3633.3 |
0% |
|
Pumps of all types |
119.1 |
139.6 |
17% |
1319.6 |
1369.7 |
4% |
|
Air condition and Refrigerators |
184.2 |
186.1 |
1% |
1636.0 |
1724.0 |
5% |
|
Industrial Machinery for dairy, food processing , textiles etc |
764.6 |
815.7 |
7% |
8517.4 |
8062.8 |
-5% |
|
Machine Tools |
61.6 |
79.4 |
29% |
694.0 |
787.8 |
14% |
|
Machinery for Injecting moulding, valves and ATMs |
247.2 |
260.1 |
5% |
2369.6 |
2530.5 |
7% |
|
Sub Total |
1757.9 |
1899.9 |
8% |
18790.9 |
18849.7 |
0% |
|
Electrical Machinery |
||||||
|
Electrical Machinery |
1061.8 |
1201.7 |
13% |
10962.2 |
12370.7 |
13% |
|
Auto and auto parts |
||||||
|
Motor Vehicle/cars |
856.6 |
741.8 |
-13% |
8718.4 |
8254.7 |
-5% |
|
Two and Three Wheelers |
242.8 |
302.6 |
25% |
2787.9 |
2772.5 |
-1% |
|
Auto Components/Part |
674.9 |
743.4 |
10% |
7275.3 |
7707.2 |
6% |
|
Auto Tyres and Tubes |
238.8 |
284.1 |
19% |
2967.5 |
2889.9 |
-3% |
|
Sub Total |
2013.1 |
2071.9 |
3% |
21749.1 |
21624.2 |
-1% |
|
Aircraft, spacecraft and parts and ships, boats and floating structures |
||||||
|
Aircrafts and Spacecraft parts and products |
126.9 |
892.7 |
603% |
1430.4 |
3241.2 |
127% |
|
Ships Boats and Floating products and parts |
362.1 |
475.8 |
31% |
4035.2 |
4059.6 |
1% |
|
Other engineering products |
||||||
|
Medical and Scientific instruments |
225.0 |
245.2 |
9% |
2209.6 |
2426.8 |
10% |
|
Railway Transport |
22.4 |
24.7 |
10% |
371.1 |
315.7 |
-15% |
|
Hand Tools & Cutting Tools |
83.0 |
90.9 |
10% |
952.4 |
928.4 |
-3% |
|
Bicycle & Parts |
36.3 |
36.8 |
1% |
396.0 |
364.6 |
-8% |
|
Cranes Lifts & Winches |
92.0 |
114.6 |
25% |
812.8 |
1062.9 |
31% |
|
Office Equipments |
35.9 |
31.6 |
-12% |
297.6 |
312.9 |
5% |
|
Other Construction Machinery |
235.3 |
331.4 |
41% |
2407.5 |
3032.7 |
26% |
|
Prime Mica & Mica Products |
2.3 |
3.3 |
45% |
27.4 |
37.0 |
35% |
|
Project Goods |
0.1 |
0.2 |
96% |
2.0 |
2.8 |
38% |
|
Other Rubber Product Except Footwear |
151.9 |
165.4 |
9% |
1712.6 |
1680.6 |
-2% |
|
Other Misc. Items |
436.1 |
481.8 |
10% |
4208.9 |
4610.1 |
10% |
|
Total engineering exports |
10194.6 |
11281.4 |
10.66% |
107041.0 |
109318.9 |
2.13% |
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 9% in 2023-24, while the proportion of capital goods increased considerably from 12% in 1956-57 to 60% in 2023-24.
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 39% 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:
