The US continued to be the top destination for India’s engineering goods exports in December 2024 while West Asia and North Africa (WANA) emerged as the top region for the first time, according to an analysis by EEPC India.
While engineering exports have grown for eight consecutive months despite looming uncertainties, future prospects may be largely influenced by protective measures by developed nations, particularly the US, and possible trade wars, it said.
“In December 2024, engineering exports were recorded at $10.84 billion registering a growth of 8.35 per cent year-on-year….In April-December 2024-25, engineering exports registered a growth of 9.94 per cent at $87.21 billion registering a growth of 9.94 per cent,” per the analysis shared on Thursday.
Engineering goods exports to the US registered 5 per cent year-on-year growth to $1.64 billion in December 2024 and a 7 per cent increase in the April-December period to $13.97 billion.
“While growth continues, there is growing uncertainty and the same has been highlighted by UNCTAD in its recent report. Going forward, global trade trends are expected to be largely influenced by protective measures by the developed nations, especially the USA, and the threat of possible trade wars,” said Pankaj Chadha, Chairman, EEPC India.
The WANA region’s share in India’s total engineering exports was 20.8 per cent in December 2024 followed by North America (19.1 per cent) and European Union (17.1 per cent). Engineering goods exports to France, Saudi Arabia, South Africa, and Sri Lanka posted a significant increase during December 2024, the analysis noted.
The share of engineering goods in India’s total goods exports expanded to 28.53 per cent in December 2024 from 26.07 per cent in December 2023, per government data. The share was recorded at 27.71 per cent in November 2024 and 28.72 per cent in October 2024. On a cumulative basis, the share was recorded at 27.11 per cent during April-December 2024-25.
