Kolkata, Mar 5 (UNI) India's engineering goods exports to the US
recorded an impressive 18 per cent year-on-year growth in January (2025) this year to US$1.62 billion even as overall engineering shipments increased at a modest 7.44 per cent during the month, according to EEPC India.
The US remained the top destination for India's engineering goods
during January as well as in cumulative terms followed by UAE, EEPC
India
chairman Pankaj Chadha said on Wednesday.
During the April-January period of the current financial year 2024-25,
India's engineering exports to the US rose nearly 9 pc year-on-year to
US$15.60 billion
as compared to US$14.38 billion in the corresponding period of the
previous year.
Engineering goods exports to UAE grew 56 pc year-on-year to US$610
million in January 2025. On a cumulative basis, it rose 45 pc to
US$6.87 billion in the April-January period of FY25.
Among India's top engineering export destinations, the countries that
registered positive growth during January this year include Germany,
Mexico, Turkey, South Africa, France,
Japan, Nepal, and Bangladesh. Shipments to countries such as the UK,
Saudi Arabia, Malaysia, China, Italy, and Spain registered negative
growth.
Commenting on the January exports numbers, Chadha said, "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 crossroad of major changes – with new
geopolitical challenges. Trade policies worldwide are evolving to
address
national concerns but they are putting unprecedented pressure on businesses."
It is estimated that in the year 2024 alone, over 3,000 trade
restrictions were implemented globally. While the challenges to the
multilateral trading system
are not new, they are intensifying, with a significant risk of further
erosion as per the Global Trade Outlook 2025 published by the
International Chamber of Commerce (ICC).
"Given the above scenario, the engineering industry is going to face
significant challenges in the coming days – the latest US tariffs are
a case in point. In this situation,
the industry would need continuous government support in the fields
of export credit and technology to remain competitive in the global
market," Chadha maintained.
Indian engineering exports continued their year-on-year growth run for
the ninth straight month to January 2025 but the growth rate moderated slightly to 7.44 pc from 8.32 pc in December 2024 on a year-on-year basis.
Engineering exports from India in January 2025 were recorded at
US$9.42 billion as against US$8.77 billion in the same month last
year.
However, engineering exports were higher at US$10.84 billion in December 2024.
The year-on-year growth in January 2025 was mainly driven by
noticeable growth in 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'.
On the other hand, exports of ‘Ships, Boats, and Floating Structures’
conceded a sharp fall in year-on-year shipments while ‘Iron and Steel’
also recorded
a noticeable decline in year-on-year exports during January 2025 like
the previous month.
Cumulatively, engineering goods exports during the April-January
period of FY25 stood at US$96.75 billion as against US$88.10 billion
in the
same period last financial year thus registering a growth of 9.82 pc.
According to the Quick Estimates of the Department of Commerce,
Government of India, the share of engineering in India's total
merchandise exports
was recorded at 25.86% in January 2025. On a cumulative basis, the
share was recorded at 26.96 pc during the April-January period of
FY2024-25.
UNI PC KK