India’s engineering goods exports maintained their growth trajectory for the seventh consecutive month in November 2024, driven by robust performances in key product categories such as aircraft, spacecraft and parts, and ships, boats, and floating structures, according to the Engineering Export Promotion Council (EEPC) of India.
Export growth extended across various sectors, including iron and steel, which turned positive for the second consecutive month in FY2024-25. Other contributors to this impressive performance included electric machinery and automobiles, which showed significant year-on-year increases during the period.
In November 2024, engineering goods exports grew 13.75% year-on-year to $8.90 billion, up from $7.82 billion in the same month of the previous year. For the April-November period of FY25, cumulative engineering goods exports reached $75.47 billion, reflecting an 8.87% growth compared to $69.32 billion during the same period in FY24.
EEPC India Chairman Pankaj Chadha remarked that, this consistent growth in engineering exports, even amidst global challenges like logistical hurdles, protectionist trade policies, and geopolitical tensions, is a testament to the resilience of Indian exporters. He also cautioned about potential uncertainties, including the possibility of a trade policy shift in the US under the Trump administration, which could impact global trade dynamics and India’s exports.
The United States remains India’s largest market for engineering goods, with cumulative exports to the country reaching $12.12 billion during the April-November FY25 period. North America and the European Union continued to be the primary destinations for India’s engineering exports, accounting for approximately 20% and 17% of total exports, respectively.
Among the standout performers, exports of aircraft and spacecraft parts surged 206% year-on-year in November 2024 to $781 million. Meanwhile, exports of ships, boats, and floating structures rose 92% year-on-year to $208.7 million during the same month.
On a sectoral basis, 24 out of 34 engineering panels reported positive year-on-year growth in November 2024, with 27 panels recording cumulative growth for FY25. Engineering goods accounted for a remarkable 27.71% share of overall merchandise exports in November 2024 and 26.87% on a cumulative basis.
Despite the optimistic performance, global trade remains under scrutiny. The World Trade Organization (WTO) has projected a modest 2.7% growth in merchandise trade volume for 2024, with a slight increase to 3.0% in 2025. The latest UNCTAD Trade Update issued in December 2024 also highlighted uncertainties for 2025, particularly around potential policy shifts in the US, including broader tariffs that could disrupt global value chains.
TRADE TECH | China Proposes Tech Export Rule Updates to Boost Global Collaboration
