India's engineering exports conceded a marginal 0.82% year-on-year decline to $9.89 billion in May 2025 due to a higher statistical base and geopolitical tensions in the Middle East and West Asia, but its share in the country's total merchandise exports increased to 25.53% during this period.
Among the major product groups, exports of aircraft, spacecraft and parts slumped by 85% and that of ships, boats and floating structures dropped by 25% year-on-year in May 2025, which mainly caused the decline in overall engineering exports.
Country-wise analysis showed a substantial decline in engineering exports to the UAE and Saudi Arabia in May this year.
India's engineering exports to the US, top destination among major exporting countries, remained positive in May 2025 with total shipments growing 4.6% year-on-year to $1.74 billion.
Engineering shipments to China registered a 5.1% year-on-year decline to $207.36 million in May 2025 as compared to $218.59 million in May 2024.
Engineering goods exports to countries such as Germany, the UK, Japan, Italy, Nepal, Brazil, South Africa, and the Netherlands showed positive growth in May this year. Among key markets, engineering exports to Mexico, Turkey, and Vietnam registered negative growth.
On a cumulative basis, India’s engineering exports recorded 4.77% growth as it went up to $19.40 billion during the April-May period of 2025-26 from $18.52 billion during the same period last fiscal.
Commenting on May trade data, Pankaj Chadha, Chairman, EEPC India, said, "While India’s engineering exports to the US and EU grew, a significant decline was noted in UAE, Saudi Arabia, and Turkey, which are significant markets for India and feature prominently in India’s top 25 destinations. The decline can be explained by the growing geopolitical tensions in the area and the rising threat to logistics. Export of aluminium and its products was also hit due to increased competition in the ASEAN region. Decline was also noted in exports of metals like zinc and lead, and aircraft, spacecraft, and parts."
The global trade is currently going through a phase of uncertainty. The European Central Bank has revised the global trade growth down by 0.4% to reach 3.1%. They have also revised down the global trade growth in 2026 to 1.7% after which it is expected to grow.
"The reasons behind this dismal trade performance are explained by the growing geopolitical tensions across the Middle East and West Asia, policy uncertainty in the US, and protectionist measures by some of the major markets. In these circumstances, India has to adopt a cautious approach. The guidance and support from the Ministry of Commerce and Industry would be crucial for the industry, especially in developing new technologies in upcoming areas, including rare earth magnets and exploring new markets," Mr Chadha said.
In May 2025, as many as 26 out of 34 engineering panels witnessed positive year-on-year growth, while 8 engineering panels, including mainly non-ferrous metals like aluminium, zinc, lead, tin, machine tools, aircraft and spacecrafts, ship and boats, witnessed a decline in exports.
On a cumulative basis, 29 out of 34 engineering panels recorded positive growth, and the remaining 5 engineering panels, including aluminium products, zinc products, aircraft and spacecrafts, cranes and winches, recorded negative growth during the April-May period of 2025-26.
Region-wise, North America maintained its spot as the number one export destination with a share of 21.3% followed by the EU (17.7%) and WANA (14.3%) in Apr-May 2025.
Among the major product groups, exports of aircraft, spacecraft and parts slumped by 85% and that of ships, boats and floating structures dropped by 25% year-on-year in May 2025, which mainly caused the decline in overall engineering exports.
Country-wise analysis showed a substantial decline in engineering exports to the UAE and Saudi Arabia in May this year.
India's engineering exports to the US, top destination among major exporting countries, remained positive in May 2025 with total shipments growing 4.6% year-on-year to $1.74 billion.
Engineering shipments to China registered a 5.1% year-on-year decline to $207.36 million in May 2025 as compared to $218.59 million in May 2024.
Engineering goods exports to countries such as Germany, the UK, Japan, Italy, Nepal, Brazil, South Africa, and the Netherlands showed positive growth in May this year. Among key markets, engineering exports to Mexico, Turkey, and Vietnam registered negative growth.
On a cumulative basis, India’s engineering exports recorded 4.77% growth as it went up to $19.40 billion during the April-May period of 2025-26 from $18.52 billion during the same period last fiscal.
Commenting on May trade data, Pankaj Chadha, Chairman, EEPC India, said, "While India’s engineering exports to the US and EU grew, a significant decline was noted in UAE, Saudi Arabia, and Turkey, which are significant markets for India and feature prominently in India’s top 25 destinations. The decline can be explained by the growing geopolitical tensions in the area and the rising threat to logistics. Export of aluminium and its products was also hit due to increased competition in the ASEAN region. Decline was also noted in exports of metals like zinc and lead, and aircraft, spacecraft, and parts."
The global trade is currently going through a phase of uncertainty. The European Central Bank has revised the global trade growth down by 0.4% to reach 3.1%. They have also revised down the global trade growth in 2026 to 1.7% after which it is expected to grow.
"The reasons behind this dismal trade performance are explained by the growing geopolitical tensions across the Middle East and West Asia, policy uncertainty in the US, and protectionist measures by some of the major markets. In these circumstances, India has to adopt a cautious approach. The guidance and support from the Ministry of Commerce and Industry would be crucial for the industry, especially in developing new technologies in upcoming areas, including rare earth magnets and exploring new markets," Mr Chadha said.
In May 2025, as many as 26 out of 34 engineering panels witnessed positive year-on-year growth, while 8 engineering panels, including mainly non-ferrous metals like aluminium, zinc, lead, tin, machine tools, aircraft and spacecrafts, ship and boats, witnessed a decline in exports.
On a cumulative basis, 29 out of 34 engineering panels recorded positive growth, and the remaining 5 engineering panels, including aluminium products, zinc products, aircraft and spacecrafts, cranes and winches, recorded negative growth during the April-May period of 2025-26.
Region-wise, North America maintained its spot as the number one export destination with a share of 21.3% followed by the EU (17.7%) and WANA (14.3%) in Apr-May 2025.
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