Special Feature

The global trade order is undergoing a major change ever since US President Donald Trump assumed office early this year and imposed tariffs on dozens of its trade partners. The world is facing massive disruption. The overall trade and global economic scenario remains volatile and uncertain. Mr Pankaj Chadha, Chairman, EEPC India spoke on annual trade data 2024-25: “Despite this and other back-to-back challenges stemming from geopolitical tensions, the Indian engineering exports sector has displayed immense resilience.”

Indeed, it is worth noting that engineering goods shipments have recorded 6.74% year-on-year growth in fiscal 2024-25 over the last year. As per data released by the Ministry of Commerce and Industry, India’s Engineering exports reached an all-time high of US$116.67 billion in 2024–25, marking a significant increase from US$109.3 billion recorded in 2023–24.

As a result of the combined efforts of the exporting community and the support of the government, the engineering exports sector has managed to perform well against all odds.

The additional duties imposed by the US on iron & steel and auto components are set to hit the engineering exports sector. There could be a potential annual drop of US$4-5 billion in engineering shipments to the US as a consequence of it. Besides, we are going to face massive competition from China in other markets as they vehemently push their products there as they chase new regions to de-risk the US.

Competition in markets like Latin America, Central America, the Middle East, and Africa is set to heat up as exporters explore new markets and further penetrate the existing ones. This could dent profit margins, leaving little funds for investment. At this juncture, we need constant support from the government, both fiscally and for making inroads in new markets.

The impact of the ongoing trade tariff war is, however, already visible. In March this year, the value of Indian engineering goods exports declined nearly 4% year-on-year to US$10.82 billion as compared to US$ 11.27 billion in the same month last year