India's engineering goods exports to US surge 18% in Jan

CHENNAI: India's engineering goods exports to the US recorded 18% year-on-year growth in January this year to $1.62 billion even as overall engineering shipments increased at a more modest 7.44% clip during the month.
The US remained the top destination for India's engineering goods in January as well as in cumulative terms followed by the UAE, said EEPC (Engineering Exports Promotion Council) in a statement.
During the April-January period of the current financial year 2024-25, India's engineering exports to the US rose nearly 9% year-on-year to $15.6 billion as compared to $14.38 billion in the corresponding period of the previous year. Engineering goods exports to the UAE grew 56% year-on-year to $610 million in January 2025. On a cumulative basis, it rose 45% to nearly $7 billion in the April-January period of FY25.
Among India's top engineering export destinations, the countries that registered positive growth during January this year include Germany, Mexico, Turkey, South Africa, France, Japan, Nepal and Bangladesh.
Shipments to countries like the UK, Saudi Arabia, Malaysia, China, Italy, and Spain registered negative growth.
Pankaj Chadha, chairman, EEPC India, said, "Engineering exporting community has managed to record positive growth despite significant global turmoil in the form of continuing conflicts and increasing protectionism by some of our major export destinations. Global exports seem to be at the crossroad of major changes – with new geopolitical challenges.”
It is estimated that in the year 2024 alone, more than 3,000 trade restrictions were implemented globally. While the challenges to the multilateral trading system are not new, they are intensifying, with a significant risk of further erosion as per the Global Trade Outlook 2025 published by the International Chamber of Commerce (ICC).
"Given the above scenario, the engineering industry is going to face significant challenges in the coming days – the latest US tariffs are a case in point," Chadha added.
Indian engineering exports continued their year-on-year growth run for the ninth straight month to January 2025, but the growth rate moderated slightly to 7.44% from 8.32% in December 2024 on a year-on-year basis.
The year-on-year growth in January 2025 was mainly driven by noticeable growth in exports of 'Aircraft, spacecraft and parts', 'Electric machinery and equipment', 'Automobile and auto components', 'Industrial machinery', 'Products of iron and steel', and 'Medical and scientific instruments'. On the other hand, exports of ‘Ships, boats, and floating structures’ conceded a sharp fall in year-on-year shipments while ‘Iron and steel’ also recorded a noticeable decline in year-on-year exports during January 2025 like the previous month.
Cumulatively, engineering goods exports during the April-January period of FY25 stood at $96.75 billion as against $88.10 billion in the same period last financial year thus registering nearly 10% growth.