India's engineering goods exports rise 13.81 pc in July; US, Germany lead as top importers

New Delhi, Aug 30 (IANS) India's engineering goods exports surged 13.81 per cent (year-on-year) in July 2025, driven by increased shipments to the US, the UK, Germany, Japan, Brazil, and China, a report said on Saturday.

Indian engineering exports crossed $10 billion for the first time this fiscal, reaching $10.43 billion in July, up from $9.16 billion in July 2024, according to data from the Engineering Export Promotion Council of India (EEPC).

The growth is despite the international trade facing tensions from escalating US tariffs, regional divergence, and heightened policy uncertainty.

Engineering goods exports to the US rose 19 per cent YoY to $1.81 billion in July. Engineering exports to Germany increased by 37.8 per cent YoY, reaching $457.6 million. Shipments to the UK rose 46.5 per cent YoY, reaching $402.5 million; exports to Japan increased 55.2 per cent YoY, reaching $256.6 million; and exports to Brazil advanced by 26.4 per cent YoY.

Engineering goods exports to China reached $263.9 million in July, a 35.8 per cent surge YoY.

However, exports to Turkey sharply declined by 31 per cent, likely due to geopolitical tensions with India. Engineering goods exports to the UAE, Saudi Arabia, and Singapore had also declined during the month.

During the month, 29 of 34 engineering panels reported positive growth. Five product categories, primarily aircraft and spacecraft, ships and boats, and zinc and its products, fell in July 2025 compared to the previous year.

For the April–July period of FY26, engineering exports grew 6.1 per cent YoY, reaching $39.34 billion, up from $37.08 billion during the same period last year.

Regarding the tariff tensions, Pankaj Chadha, Chairman, EEPC India, said, "We need to diversify our markets and products to survive and increase our global market share. The support of the Government of India, both in terms of foreign policy and access to credit, would be of enormous importance at this juncture."

Region-wise, North America maintained its spot as the number one engineering export destination with a share of 22 per cent, followed by the EU (18 per cent) and West Asia-North Africa (14 per cent) in April-July 2025.

The WTO projects a 0.2 per cent decline in global merchandise trade for CY 2025 and a deeper drop of up to 1.5 per cent if trade tensions escalate.

--IANS

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