Indian Engineering Exports Rebound in West Asia

Engineering exports to key West Asian markets, including the UAE and Saudi Arabia, experienced a strong recovery in May. This rebound followed earlier declines recorded in March and April due to regional conflict, with exporters successfully navigating alternative routes and ports. Shipments to the UAE grew by 81.7% to $1.24 billion in May, while those to Saudi Arabia saw an 11.6% increase, reaching $375.9 million.

This positive trend contributed to a substantial 24.4% year-on-year growth in overall engineering exports, which reached $12.3 billion in May. The United States, the sector's largest market, also demonstrated a pick-up in demand, with exports rising by 9.3% to $1.89 billion in May. Markets such as Sri Lanka and Malaysia exhibited exceptional growth rates, with exports soaring by 360% and 234%, respectively.

Diversification strategies by Indian engineering exporters have been crucial in navigating geopolitical uncertainties and supply chain realignments. Exports to China also showed significant promise, increasing by 63% in May. The automotive sector was the primary driver of these exports, with a 14% increase to $2.4 billion, particularly in car and motor vehicle shipments. Industrial machinery and iron and steel products were also significant contributors.