India’s engineering goods exports achieved an all-time high of USD 116.67 billion in the financial year 2024–25, marking a year-on-year growth of 6.74 per cent.
This figure surpassed the previous record of USD 112.10 billion set in 2021–22, highlighting the sector’s strong performance despite ongoing global uncertainties.
The total value of engineering exports in 2023–24 stood at USD 109.30 billion. While the United States continued to be the top destination for Indian engineering products, significant growth was also witnessed in the United Arab Emirates, Singapore, Nepal, Japan and France, according to a statement released by the Engineering Export Promotion Council (EEPC) of India on Sunday.
Exports of engineering goods to the United States rose by 8.7 per cent, reaching USD 19.15 billion in 2024–25, up from USD 17.62 billion in the previous financial year. Notably, engineering exports outpaced the growth of overall merchandise exports, which recorded a marginal year-on-year increase of just 0.08 per cent in 2024–25.
Consequently, the share of engineering exports within India’s total merchandise exports rose to 26.67 per cent in 2024–25, compared to 25.01 per cent in the preceding year.
“The performance of Indian engineering exports was remarkable in 2024–25, particularly given the extreme global uncertainty resulting from geopolitical tensions and economic slowdowns in major developed and emerging economies. These challenges were further compounded by President Donald Trump's decision to raise import tariffs on goods from several trade partners, including India,” said Pankaj Chadha, Chairman of EEPC India.
Of the 34 engineering panels tracked by the Council, 28 recorded positive growth over the year. However, six panels — including those covering iron and steel, non-ferrous sectors such as copper and aluminium products, office equipment, construction machinery, and mica products — experienced a decline during the April–March 2024–25 period.
North America maintained its position as India’s leading export destination for engineering goods, accounting for 20.5 per cent of total exports. It was followed by the European Union with a 17.1 per cent share, and West Asia and North Africa, which collectively accounted for 16.7 per cent.
In cumulative terms, all regions registered growth except Oceania, which saw a decline of 10.4 per cent, and the European Union, which recorded a fall of 1.9 per cent in 2024–25.
Despite the record performance during the full financial year, March 2025 witnessed a decline in engineering exports. They fell to USD 10.82 billion, down from USD 11.27 billion in March 2024, representing a year-on-year decrease of 3.92 per cent.
Looking ahead, Chadha warned of challenges stemming from global trade uncertainties. “The engineering export community in India must prepare for the rapidly evolving and unpredictable global trade environment. Significant disruptions, such as the announcement of President Trump’s ‘Liberation Day Tariff’, have already prompted retaliatory measures from several nations and raised concerns about the stability of the global economy,” he said.
The World Trade Organisation (WTO) has already cautioned that, under current conditions, global merchandise trade volume is projected to fall by 0.2 per cent in 2025. However, the WTO noted that a temporary tariff pause by the US could prevent further trade contraction, although risks remain high.
Retaliatory tariffs and policy uncertainties could potentially reduce global trade volumes by around 1.5 per cent, disproportionately affecting export-oriented and least developed countries.
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