India’s engineering exports soared by 15.9% year over year in February 2024, marking the third consecutive month of growth and reaching a record high of $9.94 billion for the fiscal year 2023–2024. Notably, this growth surpassed December 2023 figures.
Top Importers: UAE, Russia, and Saudi Arabia
- The UAE, Russia, and Saudi Arabia emerged as key importers of Indian engineering goods, showcasing robust growth trends.
- Engineering exports to the UAE reached $5.22 billion, making it India’s second-largest market, while shipments to Saudi Arabia surged by 75% to $4.62 billion, securing its position as the third largest market.
- Russia experienced a remarkable 99% increase in imports from India, amounting to $1.22 billion, attributed to the rupee payment mechanism established amidst economic sanctions.
Shifts in Export Dynamics
- Despite a 7% decline in engineering product exports to the UAE in February 2024, other markets such as the USA, Saudi Arabia, Italy, Germany, and China exhibited positive growth trends.
- Engineering exports constituted a larger portion of India’s total goods exports, increasing from 23.75% in January 2024 to 24.01% in February 2024.
Sectoral Analysis
- Out of 34 engineering panels, 28 reported higher exports in February 2024, with notable growth in various sectors.
- However, certain sectors such as products made of zinc and nickel, automobiles, railway parts, transportation, boats, ships, and office equipment witnessed a decline in exports.
- Similarly, from April to February 2023–24, 20 engineering panels saw increased exports , while sectors like iron and steel, specific non-ferrous sectors, industrial machinery, and automotive sectors faced setbacks.