Engineering goods exports to US surge 18% in January, but tariff threat looms large: EEPC
The Engineering Export Promotion Council of India (EEPC India) has said that Indian engineering goods exports to the United States exhibited 18 per cent year-on-year growth in January 2025, reaching $1.62 billion, even as overall engineering shipments grew at a modest 7.44 per cent. This comes on a day US President criticized the high tariffs charged by India and other countries, terming them as 'very unfair' and announced reciprocal tariffs from April 2 on nations that impose levies on American goods.
EEPC has said that during the April-January period of the current financial year, engineering exports to the US has rose nearly 9 per cent to $15.60 billion from $14.38 billion in the corresponding period last year. It added that Indian engineering exports have maintained positive growth for the ninth consecutive month despite geopolitical headwinds and growing trade protectionism by some of India's major export destinations. The total engineering goods exports stood at $9.42 billion in January 2025, compared to $8.77 billion in the same month last year.
EEPC India chairman Pankaj Chadha has acknowledged the resilience of Indian exporters but warned that evolving global trade policies are adding unprecedented pressure on businesses. Chadha cautioned that the latest US tariffs highlight the challenges exporters are likely to face in the coming days, adding that continuous government support in export credit and technology would be critical to maintaining competitiveness. He added that Global Trade Outlook 2025 published by the International Chamber of Commerce (ICC) reported more than 3,000 trade restrictions were implemented globally in 2024 alone posing risks to the multilateral trading system.
EEPC, while indicating toward moderation in engineering exports, has said that Indian engineering exports continued their year-on-year growth streak for the ninth straight month in January, but the growth rate moderated to 7.44 per cent from 8.32 per cent in December. It added that the January growth was primarily driven by exports of aircraft, spacecraft and parts, electric machinery and equipment, automobile and auto components, industrial machinery, products of iron and steel, and medical and scientific instruments. Meanwhile, shipments of ships, boats, and floating structures registered a sharp decline, along with iron and steel exports. It also added that the cumulative engineering exports during the April-January period of FY25 stood at $96.75 billion, reflecting a 9.82 per cent growth over $88.10 billion in the same period last year.
