India’s engineering exports rose 4.91% in August to $9.9 billion, driven by strong demand for automobiles, auto components, industrial machinery, and basic metals
New Delhi
The United States has remained the leading destination for India’s engineering exports, with shipments rising 7.2 percent year-on-year to $1.68 billion in August, according to the Engineering Export Promotion Council of India (EEPC India). Annual engineering exports to the US average nearly $20 billion, though they remain vulnerable to the 50 percent tariff imposed by the Trump administration.
Overall, India’s engineering exports grew 4.91 percent in August, reaching $9.9 billion compared to $9.4 billion a year earlier. The growth was mainly driven by strong demand for automobiles, auto components, industrial machinery, and basic metals.
EEPC India Chairman Pankaj Chadha said the rise in exports is encouraging, especially as exporters face global challenges such as potential reciprocal tariffs from the US, high logistics costs, and geopolitical uncertainties. He added that the recently signed Free Trade Agreement (FTA) with the UK would help strengthen India’s foothold in that market, while ongoing FTA talks with the European Union should address non-tariff barriers like CBAM.
Chadha also urged government support to improve marketing of Indian products abroad, highlighting the importance of diversifying both products and destinations. He stressed the need for measures to ease export credit, rising raw material prices, and shipping costs.
Other key markets showing positive growth in August included the UK, Germany, the UAE, Italy, South Africa, Bangladesh, France, and the Netherlands.
For April–August 2025, engineering exports rose 5.86 percent to $49.24 billion, up from $46.52 billion in the same period last year. The sector’s share in total merchandise exports also increased to 28.2 percent in August, compared to 26.74 percent cumulatively during the current fiscal year.
