India’s engineering exports recorded a solid 7.44% year-on-year growth in January 2025, with shipments to the US leading the way. Exports to America rose 18% to $1.62 billion, even as key markets like the UK and China posted declines.
Engineering goods continue to be the staple for the Indian industrial machinery manufacturing sector, and January’s numbers underscored the resilience of this sector. The US continued to drive demand, with shipments climbing sharply in categories like:
- Aircraft and aerospace components
- Electrical machinery
- Auto parts and components
Industry experts credit India’s focus on quality manufacturing and reliable supply chains as reasons for the consistent appetite in the US market.
EEPC India Chairman Pankaj Chadha stated in the context of high export values in January, “Engineering exporting community has managed to record positive growth despite significant global turmoil in the form of continuing conflicts and increasing protectionism by some of our major export destinations.”
Shipments to the US rose nearly 9% year-on-year, climbing to USD 15.60 billion from USD 14.38 billion a year earlier. At the same time, the Gulf is emerging as a bright spot. Engineering exports to the UAE jumped 56% year-on-year to USD 610 million in January 2025, and on a cumulative basis for April to January, they surged 45% to USD 6.87 billion.
Pressures For the Industrial Machinery Manufacturing Sector from Other Markets
Exports declined in some markets like China and the UK. Exporters face ongoing hurdles, including:
- Cost pressures from logistics and raw materials
- Trade policy uncertainties in Europe and Asia
- Slowing demand in select markets
The Engineering Sector Has Room to Grow
Despite these challenges, the industrial machinery manufacturing sector has shown it can weather external shocks. Engineering exports form one of India’s largest export segments, and the recent growth indicates:
- Diversification is paying off, with strong traction in high-value products.
- US demand remains robust, making it a reliable growth engine.
- Innovation and quality continue to strengthen India’s reputation.
According to analysts, short-term volatility in exports may persist. However, the engineering sector in India is in a position to expand its presence in advanced markets.
Attribution:
Source: This article is adapted from original reporting by The Economic Times, published on 5 March, 2025.
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