NEW DELHI– The United States continued to be the largest destination for India’s engineering exports in August, with shipments climbing 7.2 percent year-on-year to $1.68 billion, according to new data released Wednesday by the Engineering Export Promotion Council of India (EEPC India).
On an annual basis, India’s engineering exports to the U.S. average about $20 billion, though they remain exposed to the 50 percent tariff imposed by the Trump administration.
Overall, India’s engineering goods exports grew 4.91 percent in August, reaching $9.9 billion compared with $9.4 billion a year earlier. Growth was led by higher shipments of automobiles, auto components, industrial machinery, and select basic metals.
“The positive growth in August is very encouraging for the exporting community, given that the industry has been facing significant global challenges, especially the threat of reciprocal and 232 tariffs from the U.S. and rising logistics costs from geopolitical tensions,” said EEPC India Chairman Pankaj Chadha.
Chadha called the export momentum a “significant achievement” and pointed to the recently signed free trade agreement with the U.K. as a key benefit for the industry. He also expressed hope that ongoing talks with the European Union will address non-tariff barriers such as the Carbon Border Adjustment Mechanism (CBAM).
“Additionally, we urge the government to provide us with support for better marketing of Indian products abroad. Diversification of products and destinations is key. The government’s support will also be crucial to address issues of export credit, rising raw material prices, and increasing logistics costs,” Chadha added.
Besides the U.S., other key markets showing growth in August included the U.K., Germany, the UAE, Italy, South Africa, Bangladesh, France, and the Netherlands.
For the April–August period of FY26, engineering exports rose 5.86 percent year-on-year to $49.24 billion, compared with $46.52 billion in the same period last year. Engineering goods accounted for 28.2 percent of total merchandise exports in August, up from 28 percent in July, and 26.74 percent cumulatively over the first five months of the fiscal year. (Source: IANS)
