India’s Engineering Goods Exports to US Jump 4.6% in May Despite Tariff Pressures

India recorded a 4.6% increase in exports of engineering goods to the United States in May 2025 at $1.74 billion, up from the corresponding month last year, despite volatility originating from tariffs increases implemented under President Donald Trump's term.

Exports were also seen improving in major destinations in Europe like Germany, Britain, and the Netherlands in the same period.

Sharing the latest trade data, EEPC India Chairman Pankaj Chadha said: "Whereas India's engineering exports to the US and EU registered growth, there was a steep fall in UAE, Saudi Arabia, and Turkey, the large markets for India and high on India's top 25 destinations.".

The fall can be attributed to the increasing geopolitical tensions in the region and the increased threat to logistics. Export of aluminium as well as its products was also affected because of the increased competition."

A steep decline in imports to Middle Eastern nations added to a marginal 0.82% year-on-year decline in total engineering exports, which was at $9.89 billion in May 2025.

Notwithstanding this marginal decline, engineering goods consolidated their position in India's overall exports. Their percentage increased to 25.53% of the overall merchandise exports during the month, signaling the widening of the country's industrial output and an increasing contribution of high-value industries.

Taking the April–May 2025–26 period as a whole, engineering exports increased by 4.77%, reaching $19.40 billion from $18.52 billion in the corresponding period in the last fiscal year.

In April 2025, engineering exports alone had risen by 11.28% year-on-year, reaching $9.51 billion against $8.55 billion in April 2024.

In May 2025, 26 of the 34 engineering product groups saw growth over last year's corresponding month. Exports fell in eight major segments, however, led by non-ferrous metals like aluminum, zinc, lead, and tin as well as machine tools, aircraft and spacecraft, and ships and boats under marine vessels.

Regionally, North America continued to hold its position as India's largest engineering export destination, with 21.3% of the shipments. It was closely followed by the European Union at 17.7%, and the West Asia and North Africa (WANA) region at a 14.3% share in April–May 2025.