New Delhi— India’s engineering goods exports to the United States rose by 4.6% year-over-year in May 2025, reaching $1.74 billion, even as exporters navigated uncertainties stemming from recent tariff hikes announced by former U.S. President Donald Trump.
Engineering exports to several European markets also recorded growth during the same period, with Germany, the United Kingdom, and the Netherlands seeing increased shipments from India.
“While exports to the U.S. and EU grew, we observed a notable decline in shipments to key markets like the UAE, Saudi Arabia, and Turkey,” said Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC) India. “These declines are largely due to escalating geopolitical tensions in the region and growing threats to shipping routes. Aluminium and related products were particularly affected by intensified global competition.”
The reduced demand from Middle Eastern countries contributed to a slight overall decline of 0.82% in engineering exports, which totaled $9.89 billion in May.
Despite the monthly dip, engineering goods continued to account for a growing portion of India’s total merchandise exports, rising to 25.53% in May. This uptick points to a strengthening domestic manufacturing sector and a shift toward higher-value goods in India’s export portfolio.
For the first two months of the fiscal year (April–May 2025–26), India’s engineering exports increased by 4.77% to $19.40 billion, compared to $18.52 billion in the same period last year. In April alone, exports jumped by 11.28% to $9.51 billion from $8.55 billion in April 2024.
In May, 26 out of 34 engineering product categories posted year-over-year growth. However, exports of eight categories — including non-ferrous metals like aluminum, zinc, lead, and tin, as well as machine tools, aircraft and spacecraft, and ships and boats — saw declines.
Regionally, North America remained India’s top engineering export destination, accounting for 21.3% of total shipments, followed by the European Union at 17.7%, and the West Asia and North Africa (WANA) region at 14.3% during the April–May period. (Source: IANS)
