Engineering Goods Exports Surge 7.39% In May To $9.99 Bn

Engineering goods exports surged in May 2024, posting a year-on-year growth of 7.39 per cent, reaching USD 9.99 billion, following a decline in the previous month, according to industry analysis.

Key sectors, including automobile, electrical machinery, and aircraft products, played a crucial role in driving this revival. Notably, exports to the US, Turkey, Saudi Arabia, the UAE, as well as the West Asia North Africa (WANA) and Latin American regions increased significantly. However, exports to the EU saw a notable decline, as reported by EEPC India.

“Overall, engineering goods exports revived in May this year compared to the previous month, and we are hopeful that the positive track will continue despite global geo-economic concerns. We also hope that the government will continue to support us in our future endeavours, especially in the upcoming budget,” said EEPC India Chairman Arun Kumar Garodia.

Despite the overall positive trend, a decline in metal exports, particularly iron and steel, was a significant area of concern. Exports of iron and steel and related products fell 21 per cent in May 2024, amounting to USD 1.56 billion.

The report attributes this decline to increased competition from China, which is experiencing a downturn in domestic demand and is flooding global markets with cheaper metals, particularly targeting Southeast Asia and the Middle East. Additionally, Indian metal producers face market access issues in developed regions like the EU and North America.

With domestic demand in India on the rise, EEPC India proposed that the inclusion of steel in the RoDTEP scheme could provide greater incentives for Indian steel exporters.

Regional Export Growth
Exports of engineering goods to the US, India's top export destination, rose 14.4 per cent in May 2024, reaching USD 1.65 billion. Exports to Turkey more than doubled to USD 457.5 million. Engineering exports to Saudi Arabia and the UAE grew by 81 per cent USD 617 million) and 43.2 per cent USD 927 million), respectively. Additionally, exports to China recorded a 13 per cent growth, totaling USD 218.6 million.

Cumulative Growth
In the April-May 2024 period, engineering exports grew by 1.57 per cent, amounting to USD 18.53 billion. The share of engineering exports in India's total merchandise exports during May 2024 was recorded at a higher 26.61 per cent, up from 24.76 per cent in April 2024. On a cumulative basis, the share was 25.51 per cent during April-May 2024-25, according to government figures.