Nevertheless, greater shipments to key markets such because the US, UK, Germany, Japan, Brazil, and China, enabled India's engineering exports to cross $10 billion for the primary time within the present fiscal 2025-26 in July.
Indian engineering exports in July 2025 totaled US$10.43 billion, up from US$9.16 billion in July 2024, representing a 13.81% year-over-year development.
Engineering items exports to the US rose 19% year-on-year to US$1.81 billion in July this yr, as towards US$1.52 billion in July 2024.
Throughout July 2025, engineering exports to Germany jumped 37.8% year-on-year to US$457.6 million. Shipments to the UK grew 46.5% year-on-year to US$402.5 million throughout this era. Engineering items exports to Japan and Brazil elevated 55.2% and 26.4% year-on-year in July this yr to US$256.6 million and US$227.8 million, respectively.
At US$263.9 million, engineering items exports to China rose 35.8% year-on-year in July this yr.
In July 2025, as many as 29 out of 34 engineering panels witnessed constructive year-on-year development. 5 engineering panels, together with primarily plane & spacecraft, ship & boats, zinc and its merchandise, witnessed a decline in exports throughout July 2025 vis-à-vis July 2024.
On a cumulative foundation, engineering exports recorded 6.1% year-on-year development because it went as much as US$39.34 billion within the April–July interval of 2025-26 from US$37.08 billion throughout the identical interval final fiscal.
The panorama of worldwide commerce in July 2025 was marked by tensions from escalating US tariffs, regional divergence, and heightened coverage uncertainty. As per the WTO, world merchandise commerce is projected to say no by 0.2% in 2025, with a doable deeper fall of as much as 1.5% if commerce tensions or new tariff measures intensify.
Commenting on engineering exports information, Pankaj Chadha, Chairman, EEPC India, mentioned, “The world is witnessing realignment of provide chains, and rising inward-looking commerce coverage in main economies threatening established manufacturing networks. India additionally faces an enormous tariff imposition from the US, which makes our future fairly unsure, provided that the US is our main export companion. On this situation, we have to diversify our markets and merchandise to outlive and improve our world market share. The help of the federal government, each when it comes to overseas coverage and entry to credit score, could be of nice significance at this juncture.”
Area-wise, North America maintained its spot because the primary engineering export vacation spot with a share of twenty-two% adopted by the EU (18%) and WANA (14%) in April-July 2025.
The share of engineering in whole merchandise exports rose sharply to twenty-eight% in July 2025 from 26.4% in July 2024.
Going ahead, engineering exports might take a significant hit because of the Trump administration's transfer to impose a further 25% tariff on US-bound shipments from India efficient August 27, 2025. The extra responsibility over and above 25% imposed earlier threatens to make many engineering objects uncompetitive within the US market.
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