New Delhi, Sep 24 (NationPress) The United States has maintained its position as the leading destination for engineering exports from India, with shipments increasing by 7.2 percent year-on-year, reaching $1.68 billion in August this year, as reported by the Engineering Export Promotion Council of India (EEPC India).

India's yearly engineering exports to the US average around $20 billion, which are still affected by the 50 percent tariff imposed during the Trump administration.

The growth was primarily fueled by higher exports of automobiles, auto components, industrial machinery, and select basic metals, resulting in an overall growth of 4.91 percent in engineering goods exports in August.

Engineering exports in August 2025 were noted at $9.9 billion, compared to $9.4 billion in the same month last year.

"The encouraging growth observed in August is significant for the exporting community, especially as the industry faces substantial global challenges, including the threat of reciprocal tariffs and rising logistics costs due to escalating geopolitical tensions," stated EEPC India Chairman Pankaj Chadha.

This achievement is noteworthy for the exporting community. The recently signed FTA with the UK is expected to greatly benefit the industry by enhancing our market presence in the UK, he added.

As India pursues another FTA with the EU, there is hope that it will tackle non-tariff barriers like CBAM to ensure the effectiveness of these agreements, Chadha remarked.

"Moreover, we strongly urge the government to assist in better marketing of Indian products overseas, as diversifying products and markets is crucial. Government support is also essential for tackling challenges related to export credit, increasing raw material prices, and logistics expenses," he added.

Among key markets for Indian engineering exports, notable growth in August 2025 was seen in the UK, Germany, UAE, Italy, South Africa, Bangladesh, France, and the Netherlands.

On a cumulative basis, engineering exports recorded a 5.86 percent year-on-year growth during the first five months of fiscal year 2025-26, climbing to $49.24 billion in the April-August period of 2025-26, up from $46.52 billion during the same timeframe last fiscal.

The share of engineering in total merchandise exports increased to 28.2 percent in August 2025, up from 28 percent in July 2025. On a cumulative basis during the April-August period of 2025-26, it was recorded at 26.74 percent.