Indian Engineering Exports Surge 11.28% in April 2025, US Market Shines with 17% Growth
New Delhi, May 22, 2025 – Indian engineering goods exports kicked off the fiscal year 2025-26 with robust growth, recording an 11.28% year-on-year increase to reach US$9.51 billion in April 2025, up from US$8.55 billion in April 2024, according to the Quick Estimates of the Department of Commerce, Government of India. The stellar performance was driven by strong demand from key markets such as the United States, United Arab Emirates (UAE), United Kingdom, Singapore, Brazil, and Australia, despite headwinds in global trade dynamics.
Key Market Highlights
The United States emerged as a standout destination, with engineering goods exports rising 17% to US$1.66 billion in April 2025, compared to US$1.42 billion in the same month last year. The UAE also registered impressive growth, with shipments soaring 37.3% to US$538.8 million, up from US$392.5 million in April 2024. Other markets, including the UK, Singapore, Brazil, and Australia, also recorded high double-digit growth, underscoring India’s growing competitiveness in these regions.
However, exports to certain major markets faced challenges. Shipments to China declined 21.7% to US$164.8 million in April 2025, down from US$210.5 million in April 2024. Similarly, exports to Turkey, Mexico, and Italy recorded negative growth, reflecting the uneven impact of global economic conditions and geopolitical shifts.
Sectoral Performance
The double-digit growth in April 2025 was fueled by strong performances across several product categories. Key contributors included electric machinery and equipment, ships, boats, and floating structures, motor vehicles, and copper products. Notably, iron and steel exports rebounded after months of decline, adding to the positive momentum. However, six out of 34 engineering panels, including aluminium products, zinc products, aircraft and spacecraft, railway and transport equipment, and cranes, lifts, and winches, experienced a year-on-year decline.
Regional Insights
Regionally, North America retained its position as the top export destination, accounting for 21.1% of India’s engineering exports in April 2025. The European Union followed with a 17.4% share, while West Asia and North Africa contributed 14.1%. Significant growth was observed in Oceania (36.4%), Sub-Saharan Africa (31.6%), and Latin America (27.2%), reflecting India’s expanding footprint in these emerging markets. However, exports to Other Europe and the Commonwealth of Independent States (CIS) saw a decline.
Share in Total Exports
Engineering goods accounted for 24.71% of India’s total merchandise exports in April 2025, a slight increase from 24.21% in April 2024. This underscores the sector’s pivotal role in driving India’s export economy, even amidst global uncertainties.
Industry and Government Perspectives
Commenting on the export figures, Mr. Pankaj Chadha, Chairman of the Engineering Export Promotion Council of India (EEPC India), hailed the achievement as a testament to the resilience of Indian exporters. “Despite multiple global challenges, including geopolitical transformations and supply chain disruptions, our exporters have delivered commendable growth. The support of the Government of India remains critical in navigating these difficult times,” he said. Chadha also highlighted the recently concluded India-UK Free Trade Agreement as a significant step toward bolstering India’s position in the UK market, expressing optimism for sustained growth in the coming months.
Industry experts attribute the strong performance to a combination of factors, including a lower base effect from the previous year, increased global demand for Indian engineering products, and proactive government policies. Initiatives such as the Production-Linked Incentive (PLI) scheme, export promotion programs, and trade agreements have enhanced the competitiveness of Indian engineering goods on the global stage.
Challenges and Outlook
Despite the positive start to the fiscal year, exporters face ongoing challenges, including rising raw material costs, logistical bottlenecks, and geopolitical uncertainties impacting key markets like China and Turkey. The EEPC India has urged the government to continue providing targeted support, including easier access to credit, incentives for technology adoption, and measures to mitigate freight costs.
Analysts remain cautiously optimistic about the sector’s outlook for FY26. “The engineering goods sector is a cornerstone of India’s export economy, and its ability to adapt to changing global dynamics will be key,” said Dr. Anupam Sharma, a trade economist. “Sustained government support, coupled with efforts to diversify markets and product offerings, could help maintain this growth trajectory.”
Conclusion
The 11.28% growth in engineering goods exports in April 2025 signals a promising start to the fiscal year, reinforcing India’s position as a global manufacturing hub. With strong performances in key markets and sectors, and continued government backing, the engineering sector is poised to navigate global challenges and contribute significantly to India’s economic growth. The EEPC India remains committed to working with stakeholders to sustain this momentum and explore new opportunities in the global market.
For further details on India’s export performance, visit the Department of Commerce’s official website or contact EEPC India.
