India’s engineering goods exports grew robustly in January, with the US as the top destination. Exports to the US saw an 18% year-on-year increase, reaching $1.62 billion, while total engineering exports grew by 7.44% to $9.42 billion in January 2025, compared to $8.77 billion last year, according to the Engineering Exports Promotion Council (EEPC).

Despite geopolitical tensions and growing protectionism, India’s engineering exports have shown positive growth for the ninth consecutive month. EEPC India Chairman Pankaj Chadha noted that the sector managed to thrive despite global turmoil and protectionist measures by key export destinations.

This comes as U.S. President Donald Trump announced a hike in tariffs on Indian exports from April 2 as part of a reciprocal tariff policy. Chadha emphasized that changing trade policies and rising protectionism are pressuring global businesses, and the Indian government’s support in export credit and technology would be crucial for competitiveness.

India’s top engineering export destinations, such as Germany, Mexico, Turkey, and South Africa, saw growth in January, but exports to the UK, Saudi Arabia, Malaysia, China, Italy, and Spain declined.

January’s growth was mainly driven by exports of aircraft, electric machinery, automobiles, industrial machinery, iron and steel products, and medical instruments. Cumulatively, India’s engineering exports for the April-January period of FY25 reached $96.75 billion, a 9.82% increase from the previous year.

Engineering goods accounted for 25.86% of India’s total merchandise exports in January. The sector, which contributes 3.53% of India’s GDP, has seen remarkable growth, fueled by infrastructure investments and industrial production.

India has been a permanent member of the Washington Accord since June 2014, an agreement promoting the mobility of engineers and international standards in engineering education.

IANS