India’s engineering goods exports increased by 13.81% in July 2025, crossing the $10 billion mark for the first time this fiscal year. Export earnings rose to $10.43 billion, compared to $9.16 billion in July 2024. This robust growth happened despite global trade tensions, including new tariffs from the US and uncertainty in international policies.
Top Importers: US and Germany
The United States and Germany emerged as the leading importers of Indian engineering products in July 2025. Shipments to the US saw a significant increase of 19% year-on-year, reaching $1.81 billion, while exports to Germany jumped by an impressive 37.8% to $457.6 million. Other key destinations included the UK, Japan, Brazil, and China, all showing notable positive growth. However, exports to countries like Turkey, UAE, Saudi Arabia, and Singapore saw a decline during the month.
Sector Trends and Global Outlook
Out of 34 engineering sectors, 29 reported positive export growth, including machinery, automobiles, and electronics. Only five areas, such as aircraft and spacecraft, ships and boats, and zinc products, witnessed declines. Region-wise, North America kept its position as the top destination for Indian engineering goods, followed by the EU and West Asia-North Africa. Economic experts warned that additional tariffs from the US could challenge future growth, making diversification and government support even more important for exporters in coming months.