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Tariffs

India's Engineering Exports to US Rise Despite High Tariffs

Strategic Insights

— 2 min read

India's engineering exports to the US continued to rise in April-May despite the imposition of high tariffs, with a growth of 10.4% to $3.4 billion. The strong growth in steel, machinery, and auto parts exports contributed to this surge. However, exports to key countries in the Middle East, such as the UAE, Saudi Arabia, and Turkey, declined sharply due to geopolitical tensions.

Key Takeaways:

  • India's engineering exports to the US grew 10.4% to $3.4 billion in April-May, driven by strong growth in steel, machinery, and auto parts exports.
  • Exports of iron and steel to the US increased by 170% to $158.4 million, while products of iron and steel grew by 10% to $518.9 million in April-May.
  • Industrial machinery exports to the US rose by 17% to $774.1 million in the same period.
  • Auto components, including auto parts and auto tires, remained steady at $394.7 million.
  • The US President's additional duties of 25% on steel and aluminum and their products, which came into effect from March 12, did not deter exports growth from these articles.
  • The sector has weathered the impact of tariffs well, but geopolitical tensions in West Asia have led to a decline in exports to key countries in the region.
  • Exports to the UAE, Saudi Arabia, and Turkey declined sharply, with a drop of 15.8%, 42.6%, and 61.5% respectively in April-May.
  • Region-wise, North America maintained its spot as the number one export destination with a share of 21.3%, followed by the EU (17.7%) and West Asia and North Africa (14.3%) in April-May.

Statistics:

  • $3,394 million: India's engineering exports to the US in April-May 2025.
  • 10.4%: Growth in India's engineering exports to the US in April-May 2025.
  • 170%: Increase in iron and steel exports to the US in April-May 2025.
  • $774.1 million: Industrial machinery exports to the US in April-May 2025.
  • $394.7 million: Auto components exports to the US in April-May 2025.
  • $684.38 million: Exports to UAE in April-May 2025, a 15.8% decline year-on-year.
  • $337.1 million: Exports to Saudi Arabia in April-May 2025, a 42.6% decline year-on-year.
  • $176.2 million: Exports to Turkey in April-May 2025, a 61.5% decline year-on-year.

Sources:

  • "India's engineering exports to US rise 10.4% to $3.4 billion in Apr-May despite high tariffs" by IE Online Media Services Pvt. Ltd., distributed by Contify.com (2025).

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