India’s engineering exports to US rise in May despite tariff challenges

India’s engineering exports to US rise in May despite tariff challenges

India’s engineering goods exports to the United States saw a 4.6 per cent increase in May this year, reaching $1.74 billion, even as exporters navigated uncertainty over tariff measures announced by President Donald Trump. The uptick reflects resilience in bilateral trade, particularly in high-value engineering segments.

Exports to major European economies also showed a positive trend. Shipments to Germany, the United Kingdom and the Netherlands recorded healthy growth, helping offset a sharp decline in engineering exports to key Middle Eastern markets such as the UAE, Saudi Arabia and Turkey.

Pankaj Chadha, Chairman of EEPC India, attributed the fall in Middle East-bound shipments to escalating geopolitical tensions and emerging risks in the logistics chain. He added that aluminium exports also faced pressure due to heightened global competition.

This shift in regional trade dynamics contributed to a slight 0.82 per cent drop in overall engineering exports, which stood at $9.89 billion in May 2025. Despite this, engineering goods strengthened their position in India’s export basket, accounting for 25.53 per cent of total merchandise exports in May — a sign of the country’s growing manufacturing capabilities and rising demand for technologically advanced products.

On a cumulative basis, engineering exports rose by 4.77 per cent to $19.40 billion during the April-May period of FY 2025-26, up from $18.52 billion during the same period last year. The growth was more pronounced in April 2025, when engineering exports jumped 11.28 per cent to $9.51 billion.

Out of the 34 engineering export categories tracked in May, 26 showed positive year-on-year growth. Sectors such as machine tools, aircraft and spacecraft components, ships and boats, as well as non-ferrous metals like aluminium and zinc, recorded a decline in exports.

North America remained India’s top export destination for engineering goods with a 21.3 per cent share, followed by the European Union at 17.7 per cent and the West Asia and North Africa region at 14.3 per cent.