Accounting for 3% of the total GDP, the Indian engineering sector forms a crucial backbone of the Indian economy. The sector contributes almost 25 percent to India’s total exports and remains the largest foreign exchange earner. Additionally the sector also contributes approximately 40% of the total manufacturing export. In fact Engineering exports reached its second lifetime high at US$ 81.02 billion in 2018-19 surpassing the previous record high of USD 76.2 billion in 2017-18. However, uncertainties on global trade outlook followed by the novel Covid 19 pandemic pulled down engineering exports to US$ 73.11 billion in 2020-21 dropping by 2.95 percent.

Panel wise India’s engineering exports in 2020-21

US$ Million
Engineering Panels	Mar-20	Mar-21	Growth (%)	Apr- March 2020	Apr- March 2021	Growth (%)
Iron and Steel and Products made of Iron and Steel
Iron and Steel	627.09	1679.72	167.86	9261.03	12102.3	30.7
Products of Iron and Steel	461.49	705.09	52.78	7005.63	6526.54	-6.8
Sub Total	1088.59	2384.81	119.07	16266.7	18628.8	14.52
Non-Ferrous Metals and Products made of Non-Ferrous Metals
Copper and products	57.88	279.48	382.88	918.97	1438.91	56.58
Aluminium and products	381.49	633.12	65.96	5114.68	5788.97	13.18
Zinc and products	56.54	65.4	15.68	569.07	742.39	30.46
Nickel and products	4.13	5.73	38.7	98.73	58.58	-40.67
Lead and products	26.57	27.57	3.76	372.06	348.2	-6.41
Tin and products	0.48	2.08	337.01	9.8	9.88	0.73
Other Non-Ferrous Metals	39.11	71.93	83.9	546.32	570.55	4.44
Sub Total	566.2	1085.32	91.68	7629.64	8957.48	17.4
Industrial Machinery
Industrial Machinery like Boilers, parts, etc	48.87	80.39	64.49	816.07	559.93	-31.39
IC Engines and Parts	188.36	286.2	51.94	2555.71	2481.24	-2.91
Pumps of all types	62.16	100.53	61.72	959.07	879.79	-8.27
Air condition and Refrigerators	95.58	122.33	27.99	1383.09	1065.76	-22.94
Industrial Machinery for dairy, food processing , textiles etc	361.99	569.12	57.22	4964.9	4701.37	-5.31
Machine Tools	26.9	49.99	85.86	428.79	414.16	-3.41
Machinery for Injecting moulding, valves and ATMs	124.23	161.54	30.03	1760.58	1591.2	-9.62
Sub Total	908.1	1370.09	50.88	12868.22	11693.44	-9.13
Electrical Machinery	688.97	824.6	19.69	8962.78	8100.41	-9.62
5. Automobiles and Auto components and Parts
Motor Vehicle/cars	522.8	517.88	-0.94	7623.83	5011.28	-34.27
Two and Three Wheelers	163.44	262.32	60.5	2110.71	2041.49	-3.28
Auto Components/Part	366.14	604.23	65.03	5304.82	4931.89	-7.03
Sub Total	1052.38	1384.42	31.55	15039.35	11984.67	-20.31
Aircrafts and Spacecraft parts and products	77.91	101.74	30.59	1424.23	1158.94	-18.63
Ships Boats and Floating products and parts	239.69	635.17	164.99	4558.2	4508.89	-1.08
8. Other engineering products
Medical and Scientific instruments	129.17	176.21	36.42	1768.47	1717.63	-2.87
Railway Transport	5.41	24.45	352.04	238.98	119.51	-49.99
Hand Tools & Cutting Tools	49.36	78.8	59.64	752.52	712.13	-5.37
Electrodes Accumulators	3.94	4.76	20.96	55.21	43.35	-21.48
Accumulator and Batteries	25.97	46.47	78.95	410.97	395.51	-3.76
Bicycle & Parts	24.37	39.76	63.11	384.17	348.1	-9.39
Cranes Lifts & Winches	41.73	58.65	40.55	566.49	476.19	-15.94
Office Equipment	10.65	18.2	70.81	177.4	138.55	-21.9
Other Construction Machinery	88.1	168.54	91.3	1407	1244.54	-11.55
Prime Mica & Mica Products	1.95	2.37	21.19	39.32	24.15	-38.58
OTHER MISC. ITEMS	205.51	332.2	61.65	2794.8	2867.3	2.59
Sub Total	586.16	950.4	62.14	8595.32	8086.94	-5.91
Total engineering exports	5208.01	8736.56	67.75	75344.41	73119.6	-2.95
Source: DGCI&S

Latest Engineering Export Trend- Highlight

Engineering exports well on track to achieve USD 107 billion exports by end of FY 2021

• Total export target set by India for the fiscal 2021-22: USD 400 billion
• Total engineering export target set by India for fiscal 2021-22: USD 107 billion
• Cumulative engineering exports from India recorded 59.14 percent growth from USD 60988.62 million during April-October 2021-22 from USD 38324.66 Million during April-October 2020-21.
• Overall, for the given period (April-October 2021-22), percentage of target already achieved in the engineering sector has been 57.0%

Engineering exports: Monthly trend
The monthly engineering figures for 2021-22 vis-à-vis 2020-21 are shown below as per the latest DGCIS estimates:

Table 1: Engineering Exports: Monthly trend in 2021-22
(US$ million)

Month	2020-21	2021-22	Growth (%)
April	2306.35	7650.12	231.7
May	5466.82	8158.53	49.24
June	5825.88	8804.18	51.12
April-June	13599.06	24612.83	80.99
July	6432.18	9153.53	42.31
August	5790.82	9236.24	59.5
September	6579.26	8941.42	35.9
July-September	18802.27	27331.19	45.36
October	5923.34	9044.6	52.69
April-October	38324.66	60988.62	59.14
Source: DGCIS, Govt. of India.

Table 2 : Trends in engineering panel Exports for October 2021 compared to October 2020 as well as April- October 2021-22 compared to April- October 2020-21

US$ Million

Engineering Panels	OCTOBER, 2020	OCTOBER, 2021	Growth	APRIL,2020 -OCT,2020	APRIL,2021 –OCT,2021	Growth%
1. Iron and Steel and Products made of Iron and Steel
A	Iron and Steel	748.5	1935.8	158.6	6986	14335.9	105.2
B	Products of Iron and Steel	630.4	842.7	33.7	3323.8	4747.2	42.8
Sub Total	1378.9	2778.5	101.5	10309.8	19083.1	85.1
2. Non-Ferrous Metals and Products made of Non-Ferrous Metals
A	Copper and products	94.5	186.6	97.4	690.5	1457	111
B	Aluminium and products	451.9	864.8	91.4	3145.4	5349.1	70.1
C	Zinc and products	36	84.9	135.8	408.3	472.7	15.8
D	Nickel and products	3	8.8	190.9	26.5	59.3	123.4
E	Lead and products	25.9	32.5	25.8	207.6	270.7	30.4
F	Tin and products	0.7	1.1	66	4.7	10.7	126.3
G	Other Non-Ferrous Metals	58.4	75.8	29.8	265.2	458.5	72.9
Sub Total	670.3	1254.5	87.1	4748.3	8078	70.1
3. Industrial Machinery
A	Industrial Machinery like Boilers, parts, etc	54.3	56.5	4.2	282.2	365.5	29.5
B	IC Engines and Parts	256.7	282.7	10.1	1233.5	1908.4	54.7
C	Pumps of all types	93.6	109.9	17.5	457.9	717.5	56.7
D	Air condition and Refrigerators	91	125.6	38.1	536.3	775.7	44.6
E	Industrial Machinery for dairy, food processing , textiles etc	421.3	588.6	39.7	2295.1	3761.3	63.9
F	Machine Tools	38.7	58.4	50.7	200	365.5	82.8
G	Machinery for Injecting moulding, valves and ATMs	146.3	174.7	19.4	842	1059.4	25.8
Sub Total	1101.8	1396.4	26.7	5847	8953.2	53.1
4	Electrical Machinery	693.1	866.6	25	4559.3	5653.8	24
5. Automobiles
A	Motor Vehicle/cars	478.3	628.9	31.5	2433.3	4070.8	67.3
B	Two and Three Wheelers	222.3	244.2	9.9	876	1716.8	96
C	Auto Components/Part	476.5	571.9	20	2225.7	3919	76.1
Sub Total	1177.2	1445	22.8	5535	9706.6	75.4
6	Aircrafts and Spacecraft parts and products	104.1	125.6	20.7	644.5	648.5	0.6
7	Ships Boats and Floating products and parts	46.1	133.5	189.9	2712.8	2501.1	-7.8
8. Other engineering products
A	Medical and Scientific instruments	159.4	175.6	10.2	895.3	1161.1	29.7
B	Railway Transport	8.8	22.2	153.9	55.1	144.2	161.7
C	Hand Tools & Cutting Tools	65.6	93.5	42.4	351.9	567.1	61.2
D	Electrodes Accumulators	4	5.1	27.8	22.2	31.6	42.5
E	Accumulator and Batteries	38.8	67.3	73.7	188.1	349.6	85.8
F	Bicycle & Parts	31.5	39.5	25.6	167.4	260.5	55.6
G	Cranes Lifts & Winches	41.6	74.9	79.9	223.3	380.3	70.3
H	Office Equipments	10.8	16	48.8	71.2	105.4	48.1
I	Other Construction Machinery	117.3	213.7	82.2	577.4	1156.3	100.2
J	Prime Mica & Mica Products	2.2	2.3	4.1	13.6	21.2	56.3
K	OTHER MISC. ITEMS	272	334.3	22.9	1402.5	2187.2	55.9
Sub total	751.8	1044.4	38.9	3968.1	6364.3	60.4
Total engineering exports	5923.3	9044.6	52.7	38324.7	60988.6	59.1
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 20% in 2020-21, while the proportion of capital goods increased considerably from 12% in 1956-57 to 50% in 2020-21.

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 37% 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: