How Did India's Engineering Goods Exports Surge by 13.81% in July?

New Delhi, Aug 30 (NationPress) India's engineering goods exports experienced a remarkable growth of 13.81 percent (year-on-year) in July 2025, as highlighted by a report on Saturday. This impressive rise was fueled by increased shipments to the US, UK, Germany, Japan, Brazil, and China.

For the first time this fiscal year, Indian engineering exports surpassed $10 billion, reaching $10.43 billion in July, compared to $9.16 billion in July 2024, according to data from the Engineering Export Promotion Council of India (EEPC).

This growth occurred despite the ongoing tensions in international trade, resulting from escalating US tariffs, regional disparities, and increased policy uncertainty.

Exports of engineering goods to the US saw a 19 percent year-on-year increase, totaling $1.81 billion in July. Exports to Germany surged by 37.8 percent, reaching $457.6 million. Shipments to the UK rose significantly by 46.5 percent, amounting to $402.5 million; exports to Japan increased by 55.2 percent, totaling $256.6 million; and exports to Brazil advanced by 26.4 percent.

Exports to China also witnessed a substantial rise, reaching $263.9 million in July, marking a 35.8 percent increase.

On the contrary, exports to Turkey faced a sharp decline of 31 percent, likely attributed to geopolitical tensions with India. Additionally, exports to the UAE, Saudi Arabia, and Singapore also saw a downturn during this month.

Out of 34 engineering panels, 29 reported positive growth for the month. However, five product categories, including aircraft and spacecraft, ships and boats, and zinc and its products, experienced declines in July 2025 compared to the previous year.

From April to July of FY26, engineering exports grew by 6.1 percent year-on-year, totaling $39.34 billion, an increase from $37.08 billion during the same period last year.

Addressing the tariff tensions, Pankaj Chadha, Chairman of EEPC India, stated, "We need to diversify our markets and products to thrive and enhance our global market share. The Government of India's support, particularly in foreign policy and access to credit, will be crucial at this critical juncture."

Regionally, North America retained its position as the top destination for engineering exports, accounting for 22 percent, followed by the EU at 18 percent and West Asia-North Africa at 14 percent in the April-July 2025 period.

The WTO forecasts a 0.2 percent decline in global merchandise trade for CY 2025, with a more significant drop of up to 1.5 percent if trade tensions escalate.