According to a study released on Monday, exports of engineering items increased 4.34 percent to $27.93 billion in the April–June quarter (year over year), from $26.77 billion in the same time the previous year.
According to EEPC India, the US, UAE, Saudi Arabia, and the UK were among the top recipients of Indian engineering goods during the June quarter of the current fiscal year.
After a resurgence in May, Indian engineering exports saw double-digit increase in June, rising by 10.27% (year over year).
June exports of engineering were $9.39 billion, up from $8.52 billion in the same month the previous year.
“The engineering export community has benefited from the Free Trade Agreement (FTA) with the United Arab Emirates, and we believe that the ongoing FTA negotiations with the Gulf Cooperation Council (GCC) once concluded would further favor the community,” stated Arun Kumar Garodia, Chairman of EEPC India.
In the first quarter of 2024, there was a 1% year-over-year increase in global goods trade, and this trend is anticipated to continue in the upcoming months.
“This would also benefit the exporting community in India,” stated Garodia.
The UAE and Saudi Arabia saw a 38.2% and 42.4% increase in engineering exports, totaling $1.99 billion and $1.4 billion, respectively.
In the quarter, engineering exports to the United States reached $4.65 billion, up 8.2% from $4.3 billion during the same period in FY2023–2024.
EEPC India reports that during this time, engineering exports to the UK increased by 21% year over year to $1.01 billion.
Notably, in the June quarter of the current fiscal year, engineering exports to China increased by 10.4% (year over year) to $619.2 million.
The nation’s MSMEs are expected to benefit greatly from the initiatives announced in the Union Budget 2024–2025.
“The exporting community would greatly benefit from further actions like the establishment of e-commerce export hubs in the PPP model or favorable customs tariff regulations. In line with the EU’s CBAM regulations, investment-grade energy audits conducted throughout 60 conventional industry clusters will improve operational effectiveness and lower carbon emissions, according to Garodia.
In the first quarter of this year, 23 out of 34 engineering panels showed positive growth.
June’s engineering export growth was ascribed, among other things, to a respectable increase in shipments of electrical machinery, automobiles and motor vehicles, iron and steel goods, auto parts and components, and industrial machinery.
With the exception of the export of iron and steel, engineering exports increased significantly both monthly and cumulatively, according to EEPC India.
