India’s engineering exports in October 2023 demonstrated a complex pattern of growth and decline across various global markets, as reflected in reports from the Engineering Export Promotion Council (EEPC) of India and other sources.
In October 2023, India’s engineering exports rose by 7.2% to USD 8.1 billion, contributing significantly to the nation’s overall exports of USD 62.26 billion for the month. This increase is notable, especially considering that 26 out of 34 engineering sub-sectors recorded positive year-on-year growth. The top five markets contributing to this growth were the USA, Saudi Arabia, UAE, Germany, and Turkey.
Despite this positive trend in October, the cumulative growth for the first seven months of the 2023-24 financial year contracted by 1.6%. However, October marked the third consecutive month of positive year-on-year growth for India’s engineering exports. The overall engineering exports from India during April to October 2023 were down by 1.61% at USD 61.63 billion, compared to USD 62.63 billion in the same period the previous year.
A closer look at specific markets reveals diverse trends. The USA saw an increase of 2.2% in engineering exports from India, amounting to USD 1.39 billion. Similarly, exports to the UAE rose by 2.9% to USD 348.6 million, while Germany’s exports increased significantly by 20% to USD 342.7 million.
On the other hand, certain countries reported a decrease in engineering shipments from India, including China, Italy, Singapore, and Indonesia. This decline in exports to some countries indicates the divergent trends characterizing India’s engineering exports during this period.
An important factor contributing to these trends is the performance of specific product categories. For instance, exports of metal products, including those made of iron, steel, aluminium, and zinc, experienced a decline in October 2023. This decrease was attributed to market barriers faced by Indian exporters and a downturn in demand in developed countries, particularly the European Union.
In summary, India’s engineering exports in October 2023 highlight a complex picture of growth in some markets and sectors, alongside challenges and declines in others. These trends reflect the dynamic nature of global trade and the varying demand across different regions and product categories.