West Asia and North Africa emerge top market for engineering exports

West Asia and North Africa (WANA) emerged as the biggest buyer of engineering products from India for the first time ever in December pushing North America to the second slot, the commerce ministry data showed.

WANA region’s share in India’s total engineering exports was 20.8% in December 2024 followed by North America at 19.1% and European Union 17.1%. In November  the share of North America in total exports of engineering products was 20% and the European Union 17%.

Overall engineering exports in December were $10.84 billion, up 8.35% on year. Among countries the US remained the top buyer at $ 1.64 billion during the month, 5% more than the same month last year. . On a cumulative basis, exports to the US during April-December rose 7% to$13.97 billion as compared to $13 billion in the corresponding period a year ago.

“Going forward, global trade trends are expected to be largely influenced by protective measures by the developed nations, especially the US, and the threat of possible trade wars,” chairman of Engineering Export Promotion Council Pankaj Chadha said.

“In the wake of this challenging environment, we need to diversify our trade presence in new markets, especially those in Latin America, Africa, and even Oceania. The government’s support will be crucial in this. Additionally, government support is needed in importing critical raw materials where domestic supply at affordable cost is not adequate,” he added.

Significantly high growth in engineering exports was noted in France, Saudi Arabia, South Africa, and Sri Lanka on a year-on-year basis during December 2024.

On a cumulative basis, growth in engineering exports is spiraling in April-December was recorded at $87.21 billion as against $79.33 billion during the same period of the last fiscal, registering a growth of 9.94%.

As many as 27 out of 34 engineering panels recorded positive growth during the April-December period of 2024-25 and the remaining 7 engineering panels including iron and steel, some non-ferrous sectors including copper, aluminium, and zinc products, office equipment, and mica products recorded negative growth.

According to the quick estimates of the Department of Commerce the share of engineering in India’s total merchandise exports was recorded at 28.53% in December 2024 as against 26.07% in December 2023. The share was 27.71% in November and 28.72% in October 2024. On a cumulative basis, the share of the engineering sector in total merchandise exports was recorded at 27.11% in April-December.