Unpacking the Growth: Insights on Higher Shipments to the US, UK, and UAE

KOLKATA : Owing to increased demand from countries like the US, UK, UAE, Germany, and Mexico, engineering goods exports from India recorded double-digit growth in September this year, the fifth straight month of positive growth during the current fiscal year 2024-25, according to EEPC India.

In September 2024, engineering exports increased to US$9.82 billion from US$8.89 billion in the same month last fiscal year, securing 10.55 percent year-on-year growth.

Cumulative engineering exports during April-September 2024-25 were recorded at US$ 56.23 billion as against US$ 53.42 billion during the same period of the last fiscal, registering an increase of 5.25 percent.

The decline in iron and steel exports moderated to just 2 percent during September 2024, contributing to higher overall growth of engineering exports in the month concerned. Excluding the export of iron and steel, engineering exports recorded a higher growth both on a monthly as well as a cumulative basis. Exports of iron and steel conceded a 2.1 percent year-on-year decline in September 2024 and a 26.1 percent year-on-year decline during April-September 2024-25.

Notably, the share of engineering in India’s total merchandise exports in September 2024 increased to 28.41 percent from 27.20 percent in August 2024 and 26.60 percent in July 2024. Cumulative share stood at 26.37 percent during April-August 2024-25.

“The increase in shipments in September this year was majorly on account of industrial machinery, electrical machinery, automobile and auto components, medical devices, etc. The decline in both monthly and cumulative terms was evident in the ferrous and non-ferrous metal sectors. This can be mainly attributed to global uncertainties, shifting trade policies, and in some instances rising domestic demand.” EEPC India chairman Arun Kumar Garodia said in a statement on Friday.

“As the time is fraught with both certain challenges and uncertainty we urge the Government to continue their support for the industry such that exporters can remain competitive in the global market,” Garodia said.

In September 2024, as many as 26 out of 34 engineering panels witnessed positive year-on-year growth, while 8 remaining engineering panels experienced a decline. Exports of iron and steel, products of iron and steel, non-ferrous products including copper, aluminium, and lead products, other products including railway and transport equipment, ship and boats, and floating bodies dropped.

On a cumulative basis, 25 out of 34 engineering panels recorded positive growth and the remaining 9 engineering panels including iron and steel, products of iron and steel, some non-ferrous sectors including copper, aluminium and zinc products, IC engines, office equipment, and prima mica products recorded negative growth during April-September 2024-25.

Region-wise, North America and the European Union remained India’s topmost destinations for engineering exports with a share of around 21 pc and 17 pc respectively in India’s total engineering exports during the April-September period of FY25. West Asia and North Africa (WANA)

with a share of 16% registered the highest growth of 24.1 pc during April-September 2024-25 vis-?-vis the same period last year followed by CIS (growth of 13.3 pc), other Europe (growth of 11.1 pc), North America (growth of 8 pc) and North East Asia (growth of 7.3 pc).

Among top exporting destinations, the USA, UAE, Saudi Arabia, Germany, Singapore, UK, Mexico, etc. experienced positive growth in April-September 2024-25. Engineering goods exports to the US registered 8 pc year-on-year growth in September this year at US$1.55 billion. During the April-September period of FY25, shipments to the US were higher by 6.2 pc year-on-year at US$9.28 billion.

Engineering exports to the UAE surged 49.9 pc year-on-year to US$672.1 million in September 2024. In the first six months of the fiscal, shipments to the UAE grew 44.8 pc year-on-year to US$3.90 billion. Engineering exports to China grew marginally by 1.5 pc year-on-year to US$264.2 million in September this year while growth was 9.3 pc on a cumulative basis.