Burgeoning Trade: India's Engineering Exports Defy Global Turmoil

India's engineering exports to the US hit $1.62 billion in January 2025, with annual growth of 18%. Despite geopolitical tensions, exports have grown for nine consecutive months but are facing challenges from evolving trade policies. The latest US tariffs create additional hurdles for the engineering export sector.

India's engineering goods exports to the United States surged by 18% year-on-year in January 2025, totaling $1.62 billion, as overall engineering shipments grew by a modest 7.44%, according to EEPC India. This development coincided with US President Donald Trump's criticism of high tariffs imposed by India and other nations, leading to his announcement of reciprocal tariffs on countries taxing American goods, effective April 2.

During the April-January period, engineering exports to the US showed almost a 9% rise to $15.60 billion from last year's $14.38 billion. The UAE also marked a significant growth, with exports increasing by 56% year-on-year to $610 million in January and cumulative shipments rising to $6.87 billion in the fiscal year's first 10 months.

Despite geopolitical uncertainties and rising trade protectionism, India's engineering exports maintained a positive growth trajectory for the ninth consecutive month. However, the growth decelerated to 7.44% in January from 8.32% in December. Exports touched $9.42 billion in January 2025, rising from $8.77 billion the prior year. EEPC India chairman Pankaj Chadha highlighted the resilience of Indian exporters amidst external pressures, noting that changing global trade policies are imposing unprecedented challenges on businesses.

(With inputs from agencies.)