In April – February 2023-24, nearly twice as much engineering goods were exported to Russia as there was overall in the goods export market. Additionally, a rise in shipments to the UAE and Australia, two free trade partner countries, contributed to the 1.23 percent year-over-year growth in exports from this segment, which totalled $98.03 billion.
However, according to research by EEPC India (a premier trade and investment promotion organisation based in India), exports to the US and China– two significant markets for Indian engineering products – dropped in the first eleven months of this FY.
Saudi Arabia and UAE Emerge as Strong Growth Markets
In February 2024, India’s engineering exports grew year over year for the third consecutive month, reaching a record-breaking growth rate of 15.9 per cent during the fiscal year 2023–2024. The investigation showed that engineering exports reached $ 9.94 billion in February 2024, making it the second-highest export in the fiscal year 2023–2024 after December 2023.
Between April and February of 2023–2024, engineering exports to the US decreased 7 per cent to $15.95 billion, but the US remained the top destination. China, which ranks twelfth in terms of shipments, saw a 1 per cent decrease to $2.38 billion over that same time frame.
With engineering exports jumping 11 per cent to $5.22 billion in the first eleven months, the UAE was India’s second-largest market. From April to February of 2023–24, engineering item shipments to Saudi Arabia increased by 75 per cent to $4.62 billion, making it the third largest market.
Russia Ramps Up Imports from India
Russia experienced a 99 per cent increase to $1.22 billion as a result of the rupee payment mechanism that was put in place to counter the economic sanctions imposed by the West on the country. Russia aims to import more from India in order to have a more balanced trade. The shipments towards Australia increased by 5 per cent to $1.3 billion.
Arun Kumar Garodia, Chairman of EEPC India, stated that as a result of the successful FTA (Free Trade Agreement) with the UAE and the GCC discussions, India’s engineering export basket now accounts for 15 per cent of its total exports, up from 12 per cent last year due to increases in West Asia and North Africa. This achievement is attainable in spite of the challenging state of global trade.
A reliable source stated that the engineering products exports to the UAE decreased 7% to $499 million in February 2024. Also, in February 2024, the UAE, Singapore, and the Netherlands showed negative export growth, while the USA, Saudi Arabia, Italy, Germany, South Korea, Mexico, Malaysia, the UK, and China saw growth among top exporting destinations.
From 23.75 per cent in January 2024 to 24.01 per cent in February 2024, engineering exports made up a larger portion of India’s overall goods exports. From April to February of 2023–2024, the share was 24.82 per cent.
Most Engineering Panels See Growth
Up to 28 of the 34 engineering panels reported higher exports in February 2024, with the remaining panels reporting lower exports. The export of products made of zinc and nickel, automobiles, railway parts, transportation, boats, ships, and office equipment decreased.
From April to February 2023–24, 20 out of 34 engineering panels saw an increase in exports; the remaining panels, which included iron and steel, specific non-ferrous sectors including aluminium, zinc, and nickel, as well as the industrial machinery and automotive sectors, saw a loss. According to a report given by the Commerce Department, India’s total goods exports from April to February 2023–24 decreased 3.45 per cent (year over year) to $394.99 billion.
