How Did India’s Engineering Goods Exports to the US Fare Amid Tariff Turmoil?
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Synopsis
India's engineering goods exports to the US saw a notable growth of 4.6% in May, totaling $1.74 billion despite tariff challenges. This article delves into the implications of trade dynamics and geopolitical factors affecting exports to key markets.
Key Takeaways
- 4.6% increase in exports to the US.
- Positive growth in engineering exports to Europe.
- Declines observed in Middle Eastern markets.
- Engineering goods comprise 25.53% of total merchandise exports.
- April-May period showed 4.77% cumulative growth.
New Delhi, June 27 (NationPress) India's exports of engineering goods to the US saw a remarkable 4.6 percent increase, reaching $1.74 billion in May this year compared to the same month last year, despite the tariff challenges imposed by President Donald Trump.
Additionally, exports to European nations like Germany, the UK, and the Netherlands also demonstrated positive growth during May.
Pankaj Chadha, Chairman of EEPC India, commented on the trade statistics for May, stating: "While there was growth in India's engineering exports to both the US and EU, we observed a notable decline in markets such as UAE, Saudi Arabia, and Turkey, which are critical for India and rank among its top 25 export destinations.
"This decline can be attributed to escalating geopolitical tensions and increased risks to logistics. The export of aluminium and related products also faced challenges due to heightened competition."
The reduction in shipments to the Middle East led to a slight overall decrease of 0.82 percent in total engineering goods exports, which amounted to $9.89 billion in May 2025.
Conversely, the proportion of engineering goods within India's total merchandise exports rose to 25.53 percent, indicating a strengthening of the nation's manufacturing sector and the growing significance of high-value goods in the export portfolio.
On a cumulative scale, India's engineering exports grew by 4.77 percent, totaling $19.40 billion during the April-May period of 2025-26, an increase from $18.52 billion during the same timeframe last fiscal year.
Engineering goods exports surged by 11.28 percent to $9.51 billion in April compared to $8.55 billion in April of the previous year.
In May 2025, 26 out of 34 engineering panels experienced positive year-on-year growth, while 8 panels, particularly non-ferrous metals like aluminium, zinc, lead, tin, machine tools, and aircraft, saw a decline in exports.
Regionally, North America retained its position as the top export destination, accounting for 21.3 percent of total exports, followed by the EU at 17.7 percent and WANA (West Asia & North Africa) at 14.3 percent for April-May 2025.
Point of View
It is crucial to recognize the resilience shown by India's engineering sector in the face of tariff instability. While growth in exports to the US and EU is promising, the decline in the Middle East markets signals the need for strategic adjustments. Continuous monitoring of geopolitical developments will be essential for sustaining export growth.
NationPress
27/06/2025
Frequently Asked Questions
What was the percentage increase in India's engineering goods exports to the US in May?
India's engineering goods exports to the US increased by 4.6 percent in May this year.
What was the total value of engineering goods exports to the US in May?
The total value of engineering goods exports to the US in May was $1.74 billion.
Which regions saw a decline in India's engineering goods exports?
India experienced a significant decline in engineering goods exports to the UAE, Saudi Arabia, and Turkey.
What was the overall trend of engineering goods exports in May 2025?
Overall engineering goods exports experienced a slight decline of 0.82 percent, totaling $9.89 billion.
What percentage of India's total merchandise exports do engineering goods represent?
Engineering goods accounted for 25.53 percent of India's total merchandise exports during this period.
