India’s engineering exports grew by over 20% to $6.48 billion in September from $5.38 billion in the same month of previous year mainly driven by high demand particularly in South Asia and Middle East nations. The country’s total engineering exports during April-September this fiscal aggregated to about $35 billion.
Engineering sector contributes about 25% in the country’s total outbound shipments. Engineering exports include transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners. The US and Europe account for around 60% of the country’s total engineering exports. However, over the past few months, engineering exports to south and Middle East Asian countries have been increasing at brisk pace.
According to engineering exporters’ body EEPC India, three south Asian countries such Nepal, Bangladesh and Sri Lanka are included in the top 25 destinations for India’s engineering exports, with Sri Lanka standing at No. 3 position after the US and the UAE. The top 25 destinations account for 74 per cent of the total engineering exports, which were $62 billion in 2013-14 and are expected to reach $70 billion in the current fiscal.