India's Engineering Exports: Navigating Geopolitical Challenges

In May 2025, India's engineering goods exports recorded a slight decrease of 0.82 per cent year-on-year, amounting to USD 9.89 billion. This decline was significantly influenced by rising geopolitical tensions in the Middle East and West Asia, coupled with a challenging comparison against last year's high figures, according to a report by EEPC India.

The contraction was primarily driven by a dramatic 85 per cent fall in exports of 'aircraft, spacecraft and parts' and a 25 per cent reduction in 'ships, boats, and floating structures'. Meanwhile, exports to the US, India's largest market for engineering goods, rose by 4.6 per cent, hitting USD 1.74 billion. However, other key markets such as the UAE, Saudi Arabia, and Turkey, witnessed substantial declines.

Shipments to China decreased by 5.1 per cent, reaching USD 207.36 million. Conversely, markets in Germany, the UK, and Japan displayed positive trends. Pankaj Chadha, Chairman of EEPC India, emphasized the necessity for India to proceed cautiously, highlighting the need for guidance from the Ministry of Commerce and Industry in technology development and market exploration.

(With inputs from agencies.)