New Delhi: Boosted by higher shipments to key markets such as the US, UK, Germany, Japan, Brazil and China, India’s engineering goods exports crossed $10 billion for the first time in the current fiscal 2025-26 in July.
Indian engineering exports in July 2025 stood at US$10.43 billion as against US$9.16 billion in July 2024, securing 13.81% year-on-year growth.
Engineering goods exports to the US rose 19% year-on-year to US$1.81 billion in July this year as against US$1.52 billion in July 2024.
During July 2025, engineering exports to Germany jumped 37.8% year-on-year to US$457.6 million. Shipments to the UK grew 46.5% year-on-year to US$402.5 million during this period. Engineering goods exports to Japan and Brazil increased 55.2% and 26.4% year-on-year in July this year to US$256.6 million and US$227.8 million respectively.
At US$263.9 million, engineering goods exports to China rose 35.8% year-on-year in July this year.
Engineering goods exports to some of the key countries like Turkey, UAE, Saudi Arabia and Singapore recorded de-growth in July 2025. The sharp year-on-year decline in exports to Turkey could be attributed to geopolitical tensions with India. In July this year, engineering goods exports to Turkey fell 31% to US$183.1 million as against US$265.8 million in July 2024.
In July 2025, as many as 29 out of 34 engineering panels witnessed positive year-on-year growth. Five engineering panels including mainly aircraft & spacecraft, ship & boats, zinc and its products witnessed decline in exports during July 2025 vis-à-vis July 2024.
On a cumulative basis, engineering exports recorded 6.1% year-on-year growth as it went up to US$39.34 billion in April–July period of 2025-26 from US$37.08 billion during the same period last fiscal.
The landscape of international trade in July 2025 was marked by tensions from escalating US tariff, regional divergence and heightened policy uncertainty. As per WTO,u global merchandise trade is projected to decline by 0.2% in 2025 with a possible deeper fall of up to 1.5% if trade tensions or new tariff measures intensify.
Commenting on engineering exports data, Mr Pankaj Chadha, Chairman, EEPC India said, “The world is witnessing realignment of supply chains, and growing inward-looking trade policy in major economies threatening established production network. India also faces a huge tariff imposition from the US which makes our future quite uncertain given that US is our major export partner. In this scenario we need to diversify our markets and products to survive and increase our global market share. The support of the Government of India both in terms of foreign policy and access to credit would be of great importance at this juncture.”
Region wise, North America maintained its spot as the number one engineering export destination with a share of 22% followed by EU (18%) and WANA (14%) in April-July 2025.
The share of engineering in total merchandise exports rose sharply to 28% in July 2025 from 26.4% in July 2024.
Going forward, engineering exports could take a major hit due to the Trump administration’s move to impose an additional 25% tariff on US-bound shipments from India effective August 27, 2025. The additional duty over and above 25% imposed earlier threatens to make many engineering items uncompetitive in the US market.