India’s Engineering Exports to US, Europe Rise in May; Exports to Gulf Markets Dip

27 Jun 2025 , 03:35 PM

India’s engineering exports to the United States grew by 4.6% in May this year, reaching $1.74 billion, despite global uncertainty and concerns linked to tariff actions from the US administration.

Exports to key European markets including Germany, the UK, and the Netherlands also showed improvement during the month, offering some relief to exporters.

According to Engineering Export Promotion Council (EEPC) India, shipments to the UAE, Saudi Arabia, and Turkey saw a notable decline in May. These three countries are among India’s major export destinations for engineering goods.

Pankaj Chadha, Chairman of EEPC India, said the drop in exports to these Middle Eastern markets could largely be attributed to rising geopolitical tensions and the increasing risks to regional logistics.

He also pointed out that the aluminium segment took a hit due to intensifying global competition, adding to the headwinds. Because of these mixed trends, India’s total engineering exports for May 2025 saw a marginal decline of 0.82%, landing at $9.89 billion for the month.

Still, there was one positive signal. The share of engineering goods in India’s overall merchandise exports rose to 25.53%, reflecting a shift towards more value-added, industrial-grade exports in the country’s trade profile.

Over the first two months of FY26, engineering exports recorded a 4.77% rise, touching $19.40 billion during April–May, compared to $18.52 billion in the same period last year. Looking at April alone, exports had shown a much stronger performance, rising 11.28% year-on-year to $9.51 billion, up from $8.55 billion in April 2024.

A breakdown of product segments showed that 26 out of 34 engineering panels registered growth in May. However, eight panels, which include non-ferrous metals like aluminium, zinc, lead, and tin, as well as categories such as machine tools, ships, boats, and aerospace components, saw exports fall.

Regionally, North America remained the biggest buyer of India’s engineering goods, accounting for 21.3% of total exports in April–May. It was followed by the European Union, contributing 17.7%, and the WANA region (West Asia and North Africa), which had a 14.3% share during the same period.

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