Engineering exports increased by 29 per cent year-on-year in May to 3.2 billion dollars. The US largely made up for the drop in orders from crisis-ridden Europe.Engineering exports stood at 2.4 billion dollars in May 2009.Growth in these consignments was more or less in line with the total Indian merchandise exports of 16.1 billion dollars in May.Engineering Export Promotion Council Executive Director Suranjan Gupta said, they are getting good number of orders from the US, but very few orders from the European market. Of the total 32.5 billion dollars engineering exports in 2009-10, EU accounted for about 30 per cent.The exporters believe that the growth trend would continue, but fear that crisis in the European markets may impact it.A sharp erosion in the euro value has also reduced the margins for exporters. The euro has depreciated by about 17.5 per cent against the rupee since last November.To reduce dependence on traditional markets like the US and Europe, engineering exporters are exploring new markets in regions like Asean, the Middle East and Latin America.Engineering exports include heavy engineering goods, including transport equipments, capital goods, other machinery, equipments and light engineering products like castings, forgings and fasteners.