India’s engineering exports soared to a historic high of USD 116.67 billion in the fiscal year 2024-25 (FY25), registering a year-on-year growth of 6.74 per cent, according to data released by the Engineering Export Promotion Council (EEPC) India. This marks a significant jump from USD 109.30 billion in FY24 and surpasses the previous record of USD 112.10 billion achieved in FY22.
Despite global headwinds, including geopolitical instability and economic slowdown in key markets, India’s engineering sector demonstrated resilience. Notably, the sector outperformed the broader merchandise exports, which grew marginally by 0.08 per cent during the same period. Consequently, engineering goods now constitute 26.67 per cent of India’s total merchandise exports, up from 25.01 per cent last year.
The United States continued to be the largest destination for Indian engineering goods, with exports growing 8.7 per cent to USD 19.15 billion from USD 17.62 billion in FY24. Other notable markets showing significant growth include the UAE, Singapore, Nepal, Japan, and France.
“The performance of Indian engineering exports was remarkable in 2024-25 as it came during a period of extreme global uncertainty,” said Pankaj Chadha, Chairman, EEPC India. He noted that disruptions were compounded by U.S. President Donald Trump’s decision to raise import duties on several trading partners, including India.
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Growth Across Key Markets and Sectors
Out of 34 engineering panels, 28 recorded positive growth, while six, including iron and steel, copper and aluminium products, office equipment, other construction machinery, and mica products, saw declines during FY25.
Regionally, North America remained the top market with a 20.5 per cent share of India’s engineering exports, followed by the European Union (17.1 per cent) and the West Asia and North Africa (WANA) region (16.7 per cent). While most regions registered cumulative growth, Oceania and the EU bucked the trend with declines of 10.4 per cent and 1.9 per cent, respectively.
However, despite the overall record performance, engineering exports witnessed a decline in March 2025. Exports in the month dropped to USD 10.82 billion compared to USD 11.27 billion in March 2024, registering a 3.92 per cent year-on-year fall.
Chadha warned that the outlook remains uncertain due to changing global trade dynamics. “In the coming days, the engineering exporting community of India needs to prepare for the continually changing and uncertain global trade dynamics,” he said.
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Global Trade Challenges Loom Large
The announcement of the “Liberation Day Tariff” by U.S. President Trump has sparked retaliatory measures from other nations and raised concerns about the stability of global trade. The World Trade Organization (WTO) has forecasted a 0.2 per cent decline in the volume of global merchandise trade in 2025 under current conditions.
While a temporary pause in new tariffs could slow the contraction, the WTO cautioned that risks remain high, with potential policy uncertainty and retaliations possibly slashing global trade volumes by up to 1.5 per cent. This, experts warn, could particularly harm export-oriented economies, especially least developed countries.
The EEPC Chairman emphasized the need for strategic action. “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,” Chadha said. He welcomed the government’s move to negotiate a bilateral trade agreement with the U.S. and stressed the importance of diversifying India’s export destinations.
As global trade faces increasing turbulence, India’s engineering sector — a key contributor to the country’s export basket — will need to remain agile and proactive to sustain its growth momentum in the coming years.
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