KOLKATA, Jan 5: Driven by exceptionally high growth in exports of aircraft, spacecraft and parts and ships, boats and floating structures, Indian engineering exports continued its growth run for the 7th straight month to November 2024, according to EEPC India.
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 per cent.
” India’s engineering exports continued its stellar performance for
the seventh straight month in November, 2024. Barring a few
non-ferrous metals (copper, lead and zinc) and a few industrial
machinery sectors, all other sectors experienced growth in November
- This is a very positive outcome for the exporters who have faced
several challenges including logistics issues, protectionist stances
by the importing countries, geopolitical tensions etc,” EEPC India
chairman Pankaj Chadha said.
He also noted uncertainties going forward and said that the possible
trade policy shift by the US under the Trump administration could
disrupt global trade and impact key partners including India.
“The engineering exports have been on the rise but there is a need to
stay cautious. USA is one of the most important markets for the Indian
engineering industry,” Chadha added.
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 the 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 pc 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 pc 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
chain.
(UNI)
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