Engineering is India’s largest industrial sector, accounting for 3.53% of the country’s gross domestic product (GDP). The country’s engineering sector includes the production of iron, steel, related products, nonferrous metals, industrial machines, automobiles, auto components and other Engineering Goods Export. The main export commodities in the industrial machinery category are internal combustion engines and their parts, dairy products industrial machinery, food industry, textiles, and industrial machineries such as boilers, parts, injection moulding machines, valves and ATMs.
India became a permanent member of the Washington Agreement. It is now part of an exclusive group of 17 countries that are permanent signatories to the Washington Accord, an elite international agreement on engineering research and engineer mobility. India’s engineering sector has experienced tremendous growth in recent years, driven by increased investment in infrastructure and industrial production. In 2019, the government announced an investment of Rs 100 lakh crore (US$1.5 trillion) in infrastructure development over the next five years in Engineering Product Export From India.
In the 2022-2023 Union budget, the government has given a huge boost to the infrastructure sector by allocating Rs. 199,107 crore ($26.52 billion) to upgrade transport infrastructure. The engineering sector is an important part of the overall manufacturing sector and the share of engineered products in the total manufacturing output is quite significant. It is also a highly organized sector, dominated by large players employing over 4 million skilled and semi-skilled workers.
Table of content
- More about the Export Trends in India in Engineering Goods Export
- The Top Exporting Countries in Engineering Goods Export
- List of documents you need when Engineering Goods Export from India
More About Export Trend in India in Engineering Goods Export
India’s exports of engineering goods accounted for 23.77% of the country’s total exports in April-September 2022. Exports of engineering goods rose to US$54.45 billion in April-September 2022, compared to US$54.52 billion in the same period last year. The impressive growth in Engineering Goods Export of engineered goods in recent years is largely due to the Ministry of Trade and Industry’s Export Promotion Scheme for Duty-Free Capital Goods (EPCG), which is part of the Government of India’s Foreign Trade Policy (FTP).
Exports of capital goods account for about half of India’s total machinery exports. Exports of primary iron, steel and products and durable goods accounted for 21% and 20%, respectively, while exports of metals and non-ferrous products accounted for 9% of Engineering Product Export From India in 2020-21.
India’s exports of iron, steel and products are expected to reach US$18.6 billion in 2020-21, representing 14.5% year-on-year growth. Among the main exports of nonferrous metals and nonferrous metal products, exports of aluminium and products were the highest with US$5.8 billion in 2020-21, up 13.2% year-on-year. Industrial machinery recorded exports of US$11.7 billion, while exports of electrical machinery are expected to reach US$8.1 billion in 2021-22.
The Top Exporting Countries in Engineering Goods Export
India exports engineering products to the following regions: ASEAN, Northeast Asia, Africa, EU, North America, CIS, Latin America, South Asia, Africa, the Middle East, West Asia, etc. India’s biggest engineering goods importing countries are the US, UAE, China, Italy and Germany. 23 out of 25 countries recorded positive cumulative growth in engineering exports in April-March 2022 compared to April-March 2021.
The share of the top 25 machinery importing countries in India accounts for 74.6% of India’s total machinery exports in 2022-23. This very high proportion shows the dependence of India’s mechanical Engineering Goods Export on traditional markets. Italy, UAE and Belgium were the top three importers of Indian iron and steel in 2022-23, while the US, Germany and the UK were the top three importers of Indian “iron and steel products” during the same period compared to 2022-23.
In 2022-23, India’s top three importers of non-ferrous metals and products were China, South Korea and the US, while Engineering Product Export From India top three importers of electrical machinery and components during the same period were the US, Germany and France.
List of Documents you need when Engineering Goods Export from India
Bill of Lading (BL)
A Bill of lading is one of the main documents for cargo destined for Engineering Goods Export. It is issued by the carrier to establish the contract and receipt between the shipper and the carrier. With this invoice, the carrier confirms that the goods have been received by the exporter in good condition and are ready to be shipped.
The commercial invoice with a packing list
Recently, as per government guidelines, the two documents, Packing List and Commercial Invoice, requested by Customs have been merged into one document.
Commercial Invoice: This is a required document when exporting. Once the product is ready, the exporter creates a commercial invoice and sends it to customs. A Customs signature is required before shipment begins. For Engineering Product Export From India the company have to produce it.
Packing List: This document is required if the load contains more than one product. A proper packing list will be prepared to detail each export item.
Bill of shipping or Export Invoice
A Bill of shipping is a customs document required to obtain export permits from customs. It is issued by the Indian Customs e-Gateway (ICEGATE) which allows sending of transport invoices electronically. Exporters can only ship goods after showing a bill of lading as a mandatory document. It is an important document for Engineering Product Export from India.
Proforma Invoice
A proforma invoice is an invoice that is required when you request a prepayment from an involved customer. The Proforma Invoice contains product details, prices, shipping, payment transactions, etc. It is an agreement between a buyer and a seller based on trust.
Export Orders
After the proforma invoice is issued, the buyer confirms the order with a purchase order (PO) with the exporter. The order contains the details of the buyer providing details about the item such as price, currency, shipping details and terms.
Conclusion
For any kind of Export/Import business, it can be tough to Export Engineering Products. You need to get it done quickly and efficiently for growth. EximIntell understands how to Export Engineering Products with the best tips and tricks from experience.
