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India’s Engineering Exports Slip 0.8% in May as US Shipments Rise

Resilient US demand propelled a 4.8% rise in shipments over April-May despite a 0.8% drop in May.

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India’s engineering goods exports to US rose 4.6% in May despite tariff turmoil

Overview

  • India’s engineering exports fell 0.82% year-on-year to $9.89 billion in May 2025, weighed down by geopolitical tensions in West Asia and a high statistical base.
  • Cumulative shipments for April-May 2025-26 grew 4.77% to $19.40 billion, signaling underlying resilience in the sector.
  • Exports to the US climbed 4.6% to $1.74 billion in May, and key European markets such as Germany, the UK and the Netherlands also posted gains.
  • Shipments to the UAE and Saudi Arabia declined sharply, while exports of aircraft and spacecraft parts plunged 85%, driving the overall downturn.
  • Engineering goods accounted for 25.53% of India’s total merchandise exports in May, underscoring the sector’s expanding importance.