Engineering Exports To US Surge 18% In January Despite Trade Tensions

New Delhi, Mar 6 (KNN) India's engineering goods exports to the United States demonstrated robust growth of 18 percent year-on-year in January 2025, reaching USD 1.62 billion, according to data released by EEPC India. 

This performance stands in contrast to the more modest overall engineering export growth rate of 7.44 percent during the same period.

The announcement coincides with US President Donald Trump's criticism of what he termed "very unfair" high tariffs charged by India and other countries. 

President Trump has announced plans to implement reciprocal tariffs beginning April 2 on nations that impose levies on American goods, potentially escalating trade tensions.

For the April-January period of the current financial year, engineering exports to the US increased by nearly 9 percent to USD 15.60 billion from USD 14.38 billion during the corresponding period last year. 

Concurrently, exports to the UAE exhibited substantial growth of 56 percent year-on-year to USD 610 million in January, while cumulative shipments to the UAE rose 45 percent to USD 6.87 billion during the 10-month period of FY25.

Despite prevailing geopolitical tensions and increasing trade protectionism, India's engineering exports have maintained positive growth for nine consecutive months. 

However, the pace of growth decelerated to 7.44 percent in January from 8.32 percent in December. Total engineering goods exports amounted to USD 9.42 billion in January 2025, compared to USD 8.77 billion in the same month of the previous year.

EEPC India chairman Pankaj Chadha acknowledged the resilience demonstrated by Indian exporters while cautioning about the mounting pressures from evolving global trade policies. 

"Engineering exporting community has managed to record positive growth despite significant global turmoil in the form of continuing conflicts and increasing protectionism by some of our major export destinations. 

Global exports seem to be at the crossroads of major changes with new geopolitical challenges. Trade policies worldwide are evolving to address national concerns, but they are putting unprecedented pressure on businesses," Chadha stated.

He referenced the Global Trade Outlook 2025 published by the International Chamber of Commerce (ICC), which reported that more than 3,000 trade restrictions were implemented globally in 2024 alone, posing substantial risks to the multilateral trading system.

Among India's top engineering export destinations, Germany, Mexico, Turkey, South Africa, France, Japan, Nepal, and Bangladesh registered positive growth in January. 

However, shipments to the UK, Saudi Arabia, Malaysia, China, Italy, and Spain experienced negative growth during the same period.

The January growth was primarily driven by exports of aircraft, spacecraft and parts, electric machinery and equipment, automobile and auto components, industrial machinery, products of iron and steel, and medical and scientific instruments. 

Conversely, shipments of ships, boats, and floating structures registered a sharp decline, along with iron and steel exports.

Cumulatively, engineering exports during the April-January period of FY25 stood at USD 96.75 billion, reflecting a 9.82 percent growth compared to USD 88.10 billion in the same period last year. 

According to quick estimates from the department of commerce, the share of engineering goods in India's total merchandise exports was 25.86 percent in January and 26.96 percent in the April-January period of FY25.

(KNN Bureau)