Driven by high growth in exports of ‘aircraft, spacecraft and parts’ and ‘ships, boats and floating structures’, Indian engineering exports continued its growth run for the seventh straight month to November 2024, according to Engineering Export Promotion Council (EEPC). Other than these two product groups, exports of iron and steel turned positive for the second straight month in fiscal 2024-25 (FY25) and helped engineering exports to achieve higher growth. Electric machinery and automobiles also supported this high growth of overall engineering exports by showing noticeable increase in exports during November 2024.
Export growth was evident in major global regions including North America, EU, ASEAN and North East Asia. Engineering goods exports grew 13.75 per cent year-on-year in November 2024 to $8.90 billion as compared to $7.82 billion in the same month of the previous year. Cumulatively, engineering goods exports during April-November period of FY25 stood at $75.47 billion as against $69.32 billion thus registering a growth of 8.87 percent. The USA remains top destination for Indian engineering exports with cumulative exports during April-November period of FY25 estimated at $12.12 billion.
According to the Quick Estimates of Department of Commerce, Government of India, Share of engineering in overall merchandise exports was at an impressive 27.71 percent in November 2024 and at 26.87 percent on a cumulative basis. In November 2024, as many as 24 out of 34 engineering panels witnessed positive year-on-year growth. On a cumulative basis, 27 out of 34 engineering panels recorded positive growth.
Exports of ‘aircrafts and spacecraft parts and products’ in November 2024 surged 206% year-on-year to $781 million. At $208.7 million, exports of ‘ships, boats and floating products and parts’ recorded 92% year-on-year growth in November 2024.
Region wise, North America and European Union remained India’s topmost destinations for engineering exports with a share of around 20 per cent and 17 per cent respectively, in India’s total engineering exports. The World Trade Organization (WTO) has forecast moderate growth in global trade, with a projected 2.7% increase in merchandise trade volume in 2024 and 3.0% in 2025. The recent UNCTAD Trade Update published in December 2024 mentioned that 2025 remains uncertain due to anticipations regarding USA’s policy shift including broader tariffs that could impact global value chains.
