India’s Engineering Goods Exports to U.S. Rise Despite Global Headwinds
India’s engineering goods exports to the U.S. rose by 4.6% in May 2025, reaching $1.74 billion, despite uncertainties over tariff measures announced by former President Donald Trump. This reflects resilience in bilateral trade, especially in high-value engineering segments.
Exports to major European economies such as Germany, the UK, and the Netherlands also recorded steady growth, cushioning the impact of falling shipments to the Middle East, including the UAE, Saudi Arabia, and Turkey. Pankaj Chadha, Chairman of EEPC India, attributed the decline in Middle East exports to geopolitical tensions and emerging logistics challenges.
Overall engineering exports saw a marginal 0.82% dip, standing at $9.89 billion in May, but continued to account for 25.53% of India’s total merchandise exports, highlighting the sector’s growing strength.
Cumulatively, exports rose by 4.77% to $19.40 billion during April–May FY26. Out of 34 categories, 26 posted year-on-year growth, though machine tools, aircraft parts, ships, and non-ferrous metals like aluminium saw declines.
North America remained the top market with a 21.3% share, followed by the EU (17.7%) and WANA region (14.3%).
