KOLKATA, Mar 5: India’s engineering goods exports to the US achieved an impressive 18% year-on-year growth in January 2025, totaling US$1.62 billion, despite overall engineering shipments increasing modestly by 7.44% during the same month, according to EEPC India.
The US continued to be the primary destination for India’s engineering goods in January and cumulatively, followed closely by the UAE, as mentioned by EEPC India Chairman Pankaj Chadha on Wednesday.
From April to January of the ongoing financial year 2024-25, India’s engineering exports to the US grew nearly 9% year-on-year to US$15.60 billion, up from US$14.38 billion in the same period last year.
Exports of engineering goods to the UAE surged by 56% year-on-year to US$610 million in January 2025. Cumulatively, exports to the UAE rose 45% to US$6.87 billion during the April-January period of FY25.
Among India’s leading engineering export markets, countries such as Germany, Mexico, Turkey, South Africa, France, Japan, Nepal, and Bangladesh reported positive growth in January this year. Conversely, countries including the UK, Saudi Arabia, Malaysia, China, Italy, and Spain experienced negative growth.
Commenting on the export figures for January, Chadha stated, “The engineering export community has managed to achieve positive growth despite significant global challenges, including ongoing conflicts and an increase in protectionism from some of our major export destinations.
Global exports appear to be at a crossroads amid substantial changes due to new geopolitical challenges. Trade policies worldwide are evolving to address national concerns, exerting unprecedented pressure on businesses.”
It is estimated that over 3,000 trade restrictions were implemented globally in 2024 alone. While challenges to the multilateral trading system are not new, they are intensifying, posing a significant risk of further erosion, as highlighted in the Global Trade Outlook 2025 report by the International Chamber of Commerce (ICC).
“Given the current scenario, the engineering industry will face substantial challenges in the forthcoming days; the latest US tariffs exemplify this situation. In response, continued government support in export credit and technology will be crucial for the industry to maintain its competitive edge in the global market,” Chadha emphasized.
Indian engineering exports sustained their year-on-year growth for the ninth consecutive month as of January 2025, though the growth rate slightly moderated to 7.44% from 8.32% in December 2024.
Engineering exports from India for January 2025 were recorded at US$9.42 billion, compared to US$8.77 billion in the same month the previous year.
However, engineering exports were higher at US$10.84 billion in December 2024. The year-on-year growth in January 2025 was primarily driven by significant increases 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’.
Conversely, exports of ‘Ships, Boats, and Floating Structures’ saw a sharp decline in year-on-year shipments, while ‘Iron and Steel’ also experienced a noticeable decrease in year-on-year exports during January 2025, similar to the previous month.
Cumulatively, engineering goods exports for the April-January period of FY25 amounted to US$96.75 billion, up from US$88.10 billion in the same period of the previous financial year, marking a growth of 9.82%.
According to the Quick Estimates from the Department of Commerce, Government of India, the share of engineering in India’s total merchandise exports was reported at 25.86% in January 2025. Cumulatively, the share was recorded at 26.96% during the April-January period of FY2024-25. (UNI)
