Engineering Goods Exports Reach All-Time High in FY25, Hitting
$116.67 billion
Trade talks with the US and efforts to diversify
exports are key to boost India's global market presence: EEPC India Chairman
·
The
value of total engineering exports had stood at US$109.30 billion in 2023-24.
·
Engineering
goods exports to the US grew 8.7% to US$19.15 billion in FY25 from US$17.62
billion in FY24.
·
Share
of engineering exports in India’s overall merchandise exports increased to
26.67% in 2024-25 from 25.01% in the previous fiscal.
·
Indian
engineering exports declined on a monthly basis in March 2025. Engineering
exports in March 2025 were recorded at US$10.82 billion as against US$11.27
billion in March 2024, registering a decline of 3.92% year-on-year.
Registering
a year-on-year growth of 6.74%, engineering goods exports from India reached
its all-time high of US$116.67 billion in fiscal 2024-25 (FY25), surpassing the
previous high of US$112.10 billion achieved in fiscal 2021-22.
The
value of total engineering exports had stood at US$109.30 billion in 2023-24.
While
the US remained the number one destination for Indian engineering exports in
FY25, significant export growth was noted in the UAE, Singapore, Nepal, Japan
and France.
Engineering
goods exports to the US grew 8.7% to US$19.15 billion in FY25 from US$17.62
billion in FY24.
Notably,
engineering exports outweighed the broader merchandise exports in terms of
growth as India’s exports saw a marginal 0.08% year-on-year increase in
2024-25. As a result, the share of engineering exports in India’s overall
merchandise exports increased to 26.67% in 2024-25 from 25.01% in the previous
fiscal.
"The
performance of Indian engineering exports was remarkable in 2024-25 as it came
during a period of extreme global uncertainty following geopolitical
disturbances and economic slowdown in major developed and emerging nations.
This was further aggravated by US President Donald Trump's decision to raise
import duty on dozens of its trade partners, including India," said Mr
Pankaj Chadha, Chairman, EEPC India.
As
many as 28 out of 34 engineering panels recorded positive growth, and the
remaining six engineering panels, including iron and steel, some non-ferrous
sectors, including copper and aluminium products, office equipment, other
construction machinery, and mica products, recorded negative growth during
April-March 2024-25.
North
America maintained its spot as the number one export destination with a share
of 20.5%, followed by the EU (17.1%) and WANA (16.7%) in 2024-25.
In
cumulative terms, all regions experienced growth, barring Oceania (-10.4%) and
the EU (-1.9%) in the financial year ending March 2025.
Despite
achieving a record high figure in 2024-25, Indian engineering exports declined
on a monthly basis in March 2025. Engineering exports in March 2025 were
recorded at US$10.82 billion as against US$11.27 billion in March 2024,
registering a decline of 3.92% year-on-year.
"In
the coming days, the engineering exporting community of India needs to prepare
for the continually changing and uncertain global trade dynamics. The global
trade is undergoing significant disruptions, the most important being the
announcement of US President Donald Trump’s “Liberation Day Tariff,” which has
already sparked retaliatory measures from other countries and concerns about
global economic stability," said Mr Chadha.
The
WTO has already sounded caution, stating that under the current conditions, the
volume of global merchandise trade is likely to fall by 0.2% in 2025.
As
per the WTO, a temporary tariff pause by the US may arrest some trade
contraction, there are significant downside risks, including retaliation by
other countries and policy uncertainty, which may further impact global trade
volume by around 1.5%, particularly hurting the export-oriented least developed
countries.
The
tariffs are a new addition to the list of trade disruptions that have been
ongoing in recent years, including global conflicts and the rise of
protectionism.
"In
this situation, it is important for the government and the industry to adopt
strategies that will help us mitigate the issue to our advantage. The decision
to negotiate a bilateral trade agreement with the US is a welcome step.
Simultaneous to this, it is also essential for us to diversify our export
destinations," said the EEPC India Chairman.