For a better experience, Read this story in our App
TO ENJOY ADDITIONAL BENEFITS
Connect With Us
Get BusinessLine apps on
Export of aluminium and its products was also hit due to increased competition in the ASEAN region | Photo Credit: DHIRAJ SINGH
India's engineering goods exports experienced a marginal 0.82 per cent year-on-year dip in May 2025, to $9.89 billion, weighed down by escalating geopolitical tensions in the Middle East and West Asia, and a high statistical base from the previous year, according to a recent report by EEPC India
.A significant factor in the overall decline was the sharp fall in exports of 'aircraft, spacecraft and parts,' which slumped by 85 per cent, and 'ships, boats and floating structures,' down by 25 per cent year-on-year in May 2025.
The report also mentions that the shipments to the US which is India's top engineering export destination, remained positive with a 4.6 per cent year-on-year growth to $1.74 billion, exports to other major markets showed a mixed trend.
While, engineering exports to the UAE, Saudi Arabia, and Turkey saw a substantial decline. "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," said Pankaj Chadha, Chairman, EEPC India.
Additionally, exports to China also registered a 5.1 per cent year-on-year decline, reaching $207.36 million in May 2025.
However, countries like Germany, the UK, Japan, Italy, Nepal, Brazil, South Africa, and the Netherlands recorded positive growth.
Conversely, Mexico, Turkey, and Vietnam experienced negative growth in engineering exports.
However, despite the monthly dip, India's engineering exports showed resilience on a cumulative basis, recording a 4.77 per cent growth to $19.40 billion during the April-May period of 2025-26, up from $18.52 billion in the same period last fiscal.
"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," said Pankaj Chadha.
Published on June 26, 2025
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.