Key Points

India’s annual engineering exports to the US average around $20 billion, which remain exposed to the 50 per cent tariff imposed by the Trump administration.

Driven primarily by higher shipments of automobiles, auto components, industrial machinery, and some basic metals, India's engineering goods exports recorded 4.91 per cent (year-on-year) growth in August.

Engineering exports in August 2025 were recorded at $9.9 billion, as against $9.4 billion in the same month last year.

"The positive growth in August is very encouraging for the exporting community, given that the industry has been facing significant global challenges, especially the threat of reciprocal and 232 tariffs from the US and increasing logistics and shipping costs due to growing geopolitical tensions," EEPC India Chairman Pankaj Chadha said.

Therefore, it is a significant achievement for the exporting community. In these difficult times, the FTA signed with the UK will become a major benefit to the industry as it will further pave our presence in the UK market, he added.

As India negotiates another FTA with the EU, we hope it will address the non-tariff barrier concerns, such as CBAM, to make the FTAs truly effective, said Chadha.

"Additionally, we urge the government to provide us with support for the better marketing of Indian products abroad, as diversification of products and destinations is key. The support of the government will also be crucial to address the issues of export credit, rising raw material prices, and rising logistics costs," he added.

Among the key markets for Indian engineering exports, which saw positive growth during August 2025, were the UK, Germany, the UAE, Italy, South Africa, Bangladesh, France, and the Netherlands.

On a cumulative basis, engineering exports recorded 5.86 per cent year-on-year growth during the first five months of fiscal 2025-26 as they went up to $49.24 billion in the April-August period of 2025-26 from $46.52 billion during the same period last fiscal.

The share of engineering in total merchandise exports rose to 28.2 per cent in August 2025 from 28 per cent in July 2025. The share was recorded at 26.74 per cent on a cumulative basis during the April–April-August period of 2025-26.

- IANS