April 28, 2025
The US remained the top export destination, with shipments rising 8.7% to US$19.15 billion
Engineering exports outperformed broader merchandise exports, whose overall growth was a marginal 0.08%
The share of engineering goods in total merchandise exports rose to 26.67% from 25.01% the previous year
EEPC India stressed the need for new strategies, including trade diversification and bilateral agreements, to counter global trade uncertainties
Engineering goods exports from India grew 6.74% year over year in fiscal 2024-25, reaching an all-time high of US$116.67 billion, surpassing the previous peak of US$112.10 billion achieved in 2021-22.
The total value of engineering exports stood at US$109.30 billion in 2023-24. While the US remained the leading destination for Indian engineering exports, significant growth was also recorded in the UAE, Singapore, Nepal, Japan, and France, according to the Engineering Exports Promotion Council (EEPC) India, which issued a statement on Sunday.
Exports of engineering goods to the US grew 8.7% to US$19.15 billion in 2024-25, compared to US$17.62 billion in 2023-24. Engineering goods exports outpaced the broader merchandise exports, which registered only a marginal 0.08% year-on-year increase in 2024-25.
As a result, the share of engineering exports in India’s overall merchandise exports rose to 26.67% in 2024-25 from 25.01% in the previous fiscal.
EEPC India Chairman Pankaj Chadha noted that the performance of Indian engineering exports was remarkable, given the global uncertainties caused by geopolitical tensions and economic slowdowns in major economies. He pointed out that the situation had been further complicated by US President Donald Trump’s decision to increase import duties on several trade partners, including India.
The Council reported that of the 34 engineering panels, 28 registered positive growth, while six panels—including iron and steel, copper and aluminium products, office equipment, other construction machinery, and mica products—witnessed negative growth during April-March 2024-25.
North America maintained its position as the top regional destination for Indian engineering goods, accounting for 20.5% of total exports. It was followed by the European Union at 17.1% and West Asia and North Africa at 16.7% in 2024-25.
In cumulative terms, all regions saw growth except Oceania, which declined by 10.4%, and the EU, which slipped by 1.9% during the financial year ending March 2025.
However, despite achieving a record high for the year, Indian engineering exports declined every month in March 2025. Exports during the month dropped to US$10.82 billion, down from US$11.27 billion in March 2024, marking a 3.92% year-over-year decrease.
Looking ahead, Chadha said the Indian engineering export community must prepare for evolving global trade dynamics. He warned that global trade is undergoing major disruptions, especially with the US “Liberation Day Tariff” announcement, which has already triggered retaliatory actions and concerns over economic stability.
The World Trade Organization (WTO) has also flagged risks, indicating that global merchandise trade volume could shrink by 0.2% in 2025 under current conditions. A temporary pause in US tariffs could slow down this contraction. Still, there remains a threat of a 1.5% decline due to potential retaliatory moves and policy uncertainties, particularly impacting the least developed, export-oriented countries.
Chadha added that the new tariffs are yet another challenge amid ongoing global conflicts and rising protectionism. He emphasised that it is crucial for the government and industry to develop strategies that turn this situation to India’s advantage. The decision to negotiate a bilateral trade agreement with the US was seen as a welcome move, alongside efforts to diversify export destinations.
Source: Economic Times