India’s engineering goods exports rise 3.66% in July on strong US, UAE demand

India’s engineering goods exports increased by 3.66% in July, reaching $9.04 billion, up from $8.72 billion in the same month last year, according to the Engineering Export Promotion Council (EEPC) of India. This growth was driven by increased shipments to key markets such as the US, UAE, Saudi Arabia, and Singapore. The rise was attributed to higher exports of electrical machinery, automobiles and auto components, and construction machinery including cranes, lifts, and winches.

For the April-July period, cumulative engineering exports amounted to $36.97 billion, up 4.18% from $35.49 billion in the same period last fiscal year. In July, exports to the US grew by 4.2% year-on-year, reaching $1.5 billion. Exports to the UAE surged by 65.6% to $625.78 million, while exports to Saudi Arabia rose by 9.2% to $412.30 million.

Of the 25 key destinations for Indian engineering goods, positive export growth was recorded in 10 countries, while 15 countries saw declines. These top 25 countries account for 75.5% of India’s total engineering exports.

Arun Kumar Garodia, Chairman of EEPC India, expressed optimism about prospects, noting that global GDP growth forecasts remain at around 3% for 2024. The Union Budget 2024-25 is expected to significantly support MSMEs and export finance, with promises of rationalized basic customs duties on key inputs, which could further boost engineering exports.

However, engineering exports to Bangladesh fell by 11.8% year-on-year to $153.78 million in July, compared to $174.35 million in the same month last year.

According to the Department of Commerce, engineering goods accounted for 26.6% of India’s total merchandise exports in July. Out of 34 engineering panels, 24 saw positive year-on-year growth, while 10 experienced a decline.