Engineering items exports to US surge 18pc in Jan, however tariff menace looms massive: EEPC

India’s engineering items exports to the USA recorded an 18 per cent year-on-year development in January 2025, reaching USD 1.62 billion, whilst general engineering shipments grew at a modest 7.44 per cent, in line with EEPC India. This comes on a day US President Donald Trump criticised the excessive tariffs charged by India and different nations, terming them as “very unfair” and introduced reciprocal tariffs from April 2 on nations that impose levies on American items.

Through the April-January interval of the present monetary yr, engineering exports to the US rose practically 9 per cent to USD 15.60 billion from USD 14.38 billion within the corresponding interval final yr, it mentioned.

Exports to the UAE grew 56 per cent year-on-year to USD 610 million in January, whereas cumulative shipments rose 45 per cent to USD 6.87 billion through the 10-month interval of FY25.

Regardless of geopolitical tensions and rising commerce protectionism, India’s engineering exports have maintained constructive development for the ninth consecutive month. Nevertheless, the tempo of development slowed to 7.44 per cent in January from 8.32 per cent in December, it added.

Complete engineering items exports stood at USD 9.42 billion in January 2025, in comparison with USD 8.77 billion in the identical month final yr, it added.

EEPC India chairman Pankaj Chadha acknowledged the resilience of Indian exporters however warned that evolving world commerce insurance policies are including unprecedented strain on companies. “Engineering exporting neighborhood has managed to file constructive development regardless of important world turmoil within the type of persevering with conflicts and growing protectionism by a few of our main export locations. International exports appear to be on the crossroads of main adjustments with new geopolitical challenges. Commerce insurance policies worldwide are evolving to handle nationwide issues, however they’re placing unprecedented strain on companies,” Chadha mentioned. EEPC India, beneath the Union ministry of commerce, facilitates sourcing from India and encourages MSMEs to lift their commonplace on a par with worldwide greatest practices. It additionally encourages MSMEs to combine their enterprise with the worldwide worth chain.

Chadha cautioned that the most recent US tariffs spotlight the challenges exporters are more likely to face within the coming days, including that steady authorities help in export credit score and know-how could be vital to sustaining competitiveness.

Globally, greater than 3,000 commerce restrictions have been applied in 2024 alone, posing dangers to the multilateral buying and selling system, in line with the International Commerce Outlook 2025 revealed by the Worldwide Chamber of Commerce (ICC), he added.

India’s prime engineering export locations Germany, Mexico, Turkey, South Africa, France, Japan, Nepal and Bangladesh registered constructive development in January. Nevertheless, shipments to the UK, Saudi Arabia, Malaysia, China, Italy, and Spain recorded unfavorable development.

Indian engineering exports continued their year-on-year development streak for the ninth straight month in January, however the development price moderated to 7.44 per cent from 8.32 per cent in December, EEPC mentioned.

January development was primarily pushed by exports of plane, spacecraft and components, electrical equipment and gear, car and auto parts, industrial equipment, merchandise of iron and metal, and medical and scientific devices, it added.

In the meantime, shipments of ships, boats, and floating constructions registered a pointy decline, together with iron and metal exports.

Cumulatively, engineering exports through the April-January interval of FY25 stood at USD 96.75 billion, reflecting a 9.82 per cent development over USD 88.10 billion in the identical interval final yr.

The share of engineering items in India’s whole merchandise exports was 25.86 per cent in January and 26.96 per cent within the April-January interval of FY25, in line with fast estimates from the division of commerce, it mentioned.