Did India’s engineering goods exports really hit an all-time high of $116.7 billion in 2024-25?

New Delhi, April 28 (NationPress) India’s engineering goods exports have achieved a remarkable milestone, experiencing a growth of 6.74 percent to reach an unprecedented $116.67 billion for the fiscal year concluding on March 31, 2025, as reported by the Engineering Export Promotion Council (EEPC). The previous year’s total engineering exports were valued at $109.30 billion, with the former record standing at $112.10 billion during the financial year 2021-22.

The United States remained the top market for Indian engineering exports in FY25, with notable increases in exports to the UAE, Singapore, Nepal, Japan, and France.

Exports of engineering goods to the US surged by 8.7 percent, climbing from $17.62 billion in FY24 to $19.15 billion in FY25.

The proportion of engineering exports in India’s overall merchandise exports rose to 26.67 percent in 2024-25, up from 25.01 percent the previous year.

“The exceptional performance of Indian engineering exports in 2024-25 is noteworthy, especially amid significant global uncertainty driven by geopolitical tensions and economic slowdowns in major economies. This was intensified by US President Donald Trump’s decision to increase import duties on several trade partners, including India,” stated Pankaj Chadha, Chairman of EEPC India.

Out of 34 engineering panels, 28 demonstrated positive growth, while six panels—including iron and steel, certain non-ferrous sectors, office equipment, construction machinery, and mica products—witnessed declines during April-March 2024-25.

North America retained its position as the leading export destination, accounting for 20.5 percent, followed by the EU at 17.1 percent and WANA (West Asia and North Africa) at 16.7 percent in 2024-25.

In cumulative terms, all regions demonstrated growth except for Oceania (-10.4 percent) and the EU (-1.9 percent) for the fiscal year ending March 2025.

Despite setting a record figure in 2024-25, Indian engineering exports saw a month-on-month decline in March 2025, with exports recorded at $10.82 billion, down from $11.27 billion in March 2024, marking a year-on-year decrease of 3.92 percent.

“In the future, the Indian engineering export sector must adapt to the continuously evolving and uncertain global trade landscape. The global trade scenario is facing significant disruptions, notably due to US President Donald Trump’s ‘Liberation Day Tariff,’ which has incited retaliatory actions from other nations and raised concerns regarding global economic stability,” Chadha added.

The WTO has issued warnings that under the current circumstances, the global merchandise trade volume is expected to decline by 0.2 percent in 2025.

According to the WTO, a temporary pause on tariffs by the US could mitigate some trade contractions, but there are considerable risks, including retaliatory measures from other countries and policy uncertainties, which could further reduce global trade volumes by approximately 1.5 percent, particularly affecting export-driven least developed countries.

“In this context, it is crucial for both the government and the industry to implement strategies that can turn challenges into advantages. The decision to pursue a bilateral trade agreement with the US is commendable. Concurrently, diversifying our export markets is essential,” concluded the EEPC India Chairman.