India’s Engineering Exports to U.S. Climb in May Despite Trade Headwinds

India’s Engineering Exports to U.S. Climb in May Despite Trade Headwinds

Diplomat Today0

India’s exports of engineering goods to the United States rose by 4.6% in May, reaching $1.74 billion, despite ongoing uncertainty surrounding tariff policies introduced under President Donald Trump. The growth highlights the strength and adaptability of bilateral trade, especially in high-value sectors of the engineering industry.

Engineering exports to key European markets such as Germany, the UK, and the Netherlands posted solid gains, providing a cushion against steep declines in shipments to major Middle Eastern destinations like 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 Shifts in regional trade contributed to a slight 0.82% dip in India’s total engineering exports, which totaled $9.89 billion in May 2025. Even so, engineering goods solidified their role in the country’s export mix, comprising 25.53% of all merchandise exports for the month — an indicator of India’s advancing industrial capabilities and the growing global appetite for its technologically sophisticated products.

Cumulatively, engineering exports grew by 4.77% to reach $19.40 billion in the April–May period of FY 2025–26, compared to $18.52 billion during the same period last year. The increase was especially strong in April 2025, when exports surged by 11.28% to $9.51 billion.

In May, 26 out of 34 engineering export categories experienced year-on-year growth. Conversely, sectors like machine tools, aircraft and spacecraft parts, maritime vessels, and non-ferrous metals including aluminium and zinc faced a drop in export volumes.

North America continued to be the largest market for India’s engineering exports, accounting for 21.3% of the share, followed by the European Union at 17.7% and the West Asia and North Africa region at 14.3%.

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