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India's Engineering Exports Defy Tariffs, Grow 3.88% to $90.73 Billion

India's engineering exports demonstrated resilience, growing 3.88% year-on-year to $90.73 billion during the April-December period of FY26. Shipments to the United States grew by about 5% in the first nine months despite punitive tariffs, while exports to the European Union surged 9%. Notably, engineering goods exports to China saw a dramatic 42% jump in December 2025. The growth was driven by strong performance in copper, iron and steel, and automobiles, with engineering accounting for an impressive 28.5% of India's total merchandise exports in December.

Key Points: India Engineering Exports Grow 3.88% in FY26, Defy US Tariffs

  • 3.88% growth to $90.73B in Apr-Dec
  • US exports up 5% despite tariffs
  • EU shipments surge 9% in same period
  • China exports jump 42% in December
3 min read

India's engineering exports grow 3.88 pc in April-Dec 2025

India's engineering goods exports hit $90.73B in Apr-Dec 2025, growing 3.88% YoY. Exports to US & EU show resilience despite protectionism.

"Despite growing protectionism... India's engineering exports to the US and major EU economies remained positive... a significantly positive indicator - Pankaj Chadha, EEPC India"

New Delhi, Jan 30

India's engineering exports grew by 3.88 per cent to $90.73 billion during the April-December period in 2025, from $87.34 billion of the previous year, a report said on Friday.

India's engineering exports to the United States grew 1 per cent year-on-year to $1.66 billion in December 2025, despite punitive tariffs imposed by the US administration, the report from Engineering Export Promotion Council of India (EEPC India) said.

India's overall engineering goods exports worldwide grew 1.28 per cent YoY during the month to $10.98 billion -- up from $10.84 billion in previous year. In the first nine months of FY26, shipments to the US increased by about 5 per cent year-on-year to $14.68 billion.

Engineering goods exports to the European Union (EU) grew 7.5 per cent YoY to $1.99 billion in December. On a cumulative basis, shipments to the EU during the April-December period of 2025-26 increased 9 per cent YoY to $16.34 billion.

Meanwhile, engineering goods exports to China jumped 42 per cent to $357.9 million during the month while the April-December period of FY26 posted a 16.4 per cent surge.

Among other key markets, exports to the UAE and Saudi Arabia continued to decline, while exports to Singapore more than doubled in December 2025, the report noted.

The engineering shipments in December was the second highest in FY26 after $11.01 billion of exports in November 2025. "While the high growth of November 2025 resulted from a lower statistical base, the slower year-on-year growth in December 2025 was due to a higher base," the trade promotion organisation said.

The growth was also led by high copper exports along with a decent to sizeable increase in exports of iron and steel, aluminium and products, motor vehicles/cars, other construction machinery, and ships, boats, and floating structures, among others.

"Despite growing protectionism in the developed countries, India's engineering exports to the US and major EU economies remained positive in December 2025, which is a significantly positive indicator at this difficult time," said Pankaj Chadha, Chairman, EEPC India.

Chadha said the free trade agreement (FTA) with the EU is likely to result in significant gains for the exporting community.

The share of engineering in total merchandise exports was recorded at an impressive 28.5 per cent in December, as per government data.

Shipments to top two export destinations, the US and the EU, saw decent growth, while exports to ASEAN countries grew 46.4 per cent YoY. Exports to WANA (West Asian and North Africa), South Asia, and other European countries, however, declined in shipments during December 2025, the report noted.

- IANS

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Reader Comments

P
Priya S
Good to see growth despite US tariffs. But the decline in exports to UAE and Saudi Arabia is worrying. Our trade diplomacy needs to focus on these traditional markets too. The FTA with EU can't come soon enough!
R
Rohit P
As someone in the auto components industry, I can feel this uptick. Orders from Europe have been steady. The 46.4% growth to ASEAN is the real story here - we are finally making inroads in our own neighborhood. More power to 'Make in India'!
S
Sarah B
While the headline numbers look positive, a 3.88% growth over nine months is modest. We need double-digit growth to truly transform the economy and absorb the millions of engineers we produce every year. The base effect mentioned is a valid point.
K
Karthik V
The growth in copper, steel, and vehicle exports is key. It means we are moving up the value chain from raw materials to finished goods. Hope this translates into better salaries for engineers on the shop floor. Jai Hind!
M
Michael C
Interesting data. The resilience shown in the US and EU markets is commendable given the global protectionist trends. However, the decline in West Asia and South Asia needs a strategic review. Can't ignore our immediate neighbors and old partners.

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