During the April-January period of the current financial year 2024-25, India’s engineering exports to the US rose nearly 9% year-on-year to US$15.60 billion as compared to US$14.38 billion in the corresponding period of the previous year.
Engineering goods exports to UAE grew 56% year-on-year to US$610 million in January 2025. On a cumulative basis, it rose 45% to US$6.87 billion in the April-January period of FY25.
Among India’s top engineering export destinations, the countries that registered positive growth during January this year include Germany, Mexico, Turkey, South Africa, France, Japan, Nepal, and Bangladesh. Shipments to countries such as the UK, Saudi Arabia, Malaysia, China, Italy, and Spain registered negative growth.
Commenting on the January export numbers, Pankaj Chadha, chairman, EEPC India said, “Engineering exporting community has managed to record positive growth despite significant global turmoil in the form of continuing conflicts and increasing protectionism by some of our major export destinations. Global exports seem to be at the crossroads of major changes – with new geopolitical challenges. Trade policies worldwide are evolving to address national concerns but they are putting unprecedented pressure on businesses.”
It is estimated that in the year 2024 alone, over 3,000 trade restrictions were implemented globally. While the challenges to the multilateral trading system are not new, they are intensifying, with a significant risk of further erosion as per the Global Trade Outlook 2025 published by the International Chamber of Commerce (ICC).”Given the above scenario, the engineering industry is going to face significant challenges in the coming days – the latest US tariffs are a case in point. In this situation, the industry would need continuous government support in the fields of export credit and technology to remain competitive in the global market,” Mr Chadha said.Indian engineering exports continued their year-on-year growth run for the ninth straight month to January 2025 but the growth rate moderated slightly to 7.44% from 8.32% in December 2024 on a year-on-year basis.
Engineering exports from India in January 2025 were recorded at US$9.42 billion as against US$8.77 billion in the same month last year. However, engineering exports were higher at US$10.84 billion in December 2024.
The year-on-year growth in January 2025 was mainly driven by noticeable growth in exports of aircraft, spacecraft and parts, electric machinery and equipment, Automobile and auto components, industrial machinery, products of iron and steel, and ‘medical and scientific instruments. On the other hand, exports of ships, boats, and boating structures conceded a sharp fall in year-on-year shipments while iron and steel also recorded a noticeable decline in year-on-year exports during January 2025 like the previous month.
Cumulatively, engineering goods exports during the April-January period of FY25 stood at US$96.75 billion as against US$88.10 billion in the same period last financial year thus registering a growth of 9.82%.
