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India Gazette
3 days ago
- Business
- India Gazette
Indian engineering exports face headwinds in May 2025 amid geopolitical tensions
New Delhi [India] June 26 (ANI): India's engineering goods exports experienced a marginal 0.82 per cent year-on-year dip in May 2025, to USD 9.89 billion, weighed down by escalating geopolitical tensions in the Middle East and West Asia, and a high statistical base from the previous year, according to a recent report by EEPC India. A significant factor in the overall decline was the sharp fall in exports of 'aircraft, spacecraft and parts,' which slumped by 85 per cent, and 'ships, boats and floating structures,' down by 25 per cent year-on-year in May 2025. The report also mentions that, shipments to the US, India's top engineering export destination, remained positive with a 4.6 per cent year-on-year growth to USD 1.74 billion, exports to other major markets showed a mixed trend. While, engineering exports to the UAE, Saudi Arabia, and Turkey saw a substantial decline. 'The decline can be explained by the growing geopolitical tensions in the area and the rising threat to logistics. Export of aluminium and its products was also hit due to increased competition in the ASEAN region. Decline was also noted in exports of metals like zinc and lead, and aircraft, spacecraft, and parts,' said Pankaj Chadha, Chairman, EEPC India. Additionally, exports to China also registered a 5.1 per cent year-on-year decline, reaching USD 207.36 million in May 2025. However, countries like Germany, the UK, Japan, Italy, Nepal, Brazil, South Africa, and the Netherlands recorded positive growth. Conversely, Mexico, Turkey, and Vietnam experienced negative growth in engineering exports. However, despite the monthly dip, India's engineering exports showed resilience on a cumulative basis, recording a 4.77 per cent growth to USD 19.40 billion during the April-May period of 2025-26, up from USD 18.52 billion in the same period last fiscal. 'In these circumstances, India has to adopt a cautious approach. The guidance and support from the Ministry of Commerce and Industry would be crucial for the industry, especially in developing new technologies in upcoming areas, including rare earth magnets and exploring new markets,' said Pankaj Chadha. (ANI)
Time of India
3 days ago
- Business
- Time of India
Engineering goods exports dip 0.82% in May, shipments to US stay positive
New Delhi: India's engineering exports conceded a marginal 0.82% year-on-year decline to $9.89 billion in May 2025 due to a higher statistical base and geopolitical tensions in the Middle East and West Asia, but its share in the country's total merchandise exports increased to 25.53% during this period. Among the major product groups, exports of 'aircraft, spacecraft and parts' slumped by 85% and that of 'ships, boats and floating structures' dropped by 25% year-on-year in May 2025, which mainly caused the decline in overall engineering exports. Country-wise analysis showed a substantial decline in engineering exports to the UAE and Saudi Arabia in May this year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo India's engineering exports to the US, top destination among major exporting countries, remained positive in May 2025 with total shipments growing 4.6% year-on-year to $1.74 billion. Engineering shipments to China registered a 5.1% year-on-year decline to $207.36 million in May 2025 as compared to $218.59 million in May 2024. Live Events Engineering goods exports to countries such as Germany, the UK, Japan, Italy, Nepal, Brazil, South Africa, and the Netherlands showed positive growth in May this year. Among key markets, engineering exports to Mexico, Turkey, and Vietnam registered negative growth. On a cumulative basis, India's engineering exports recorded 4.77% growth as it went up to $19.40 billion during the April-May period of 2025-26 from $18.52 billion during the same period last fiscal. Commenting on May trade data, Pankaj Chadha, Chairman, EEPC India , said, in a statement, "While India's engineering exports to the US and EU grew, a significant decline was noted in UAE, Saudi Arabia, and Turkey, which are significant markets for India and feature prominently in India's top 25 destinations. The decline can be explained by the growing geopolitical tensions in the area and the rising threat to logistics. Export of aluminium and its products was also hit due to increased competition in the ASEAN region. Decline was also noted in exports of metals like zinc and lead, and aircraft, spacecraft, and parts." The global trade is currently going through a phase of uncertainty. The European Central Bank has revised the global trade growth down by 0.4% to reach 3.1%. They have also revised down the global trade growth in 2026 to 1.7% after which it is expected to grow. "The reasons behind this dismal trade performance are explained by the growing geopolitical tensions across the Middle East and West Asia, policy uncertainty in the US, and protectionist measures by some of the major markets. In these circumstances, India has to adopt a cautious approach. The guidance and support from the Ministry of Commerce and Industry would be crucial for the industry, especially in developing new technologies in upcoming areas, including rare earth magnets and exploring new markets," Chadha said. In May 2025, as many as 26 out of 34 engineering panels witnessed positive year-on-year growth, while 8 engineering panels, including mainly non-ferrous metals like aluminium, zinc, lead, tin, machine tools, aircraft and spacecrafts, ship and boats, witnessed a decline in exports. On a cumulative basis, 29 out of 34 engineering panels recorded positive growth, and the remaining 5 engineering panels, including aluminium products, zinc products, aircraft and spacecrafts, cranes and winches, recorded negative growth during the April-May period of 2025-26. 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 WANA (14.3%) in Apr-May 2025.
United News of India
4 days ago
- Business
- United News of India
EEPC India urges Govt to include sectoral tariffs in BTA with US
Mumbai, June 25 (UNI) The proposed India-US bilateral trade agreement (BTA) should include sectoral tariffs like steel, aluminium, and auto parts as it is crucial for engineering goods exports which account for nearly one-fourth of the country's total merchandise exports, according EEPC India chairman Pankaj Chadha. Speaking at the EEPC India Regional Award Presentation ceremony for the fiscal year 2021–22 here, Chadha today said, "It would be unfair on engineering exporters if there is a BTA done without looking at sectoral tariffs. Sector tariff happens to be an important facet of India's exports. We are doing more than around 20 billion dollars of exports to USA. "So they can't overlook us and do a deal. As and when the first tranche of BTA is done, we hope the sectoral tariff and auto component tariff is part of it."He expressed hope that a free trade agreement (FTA) with the European Union (EU) could be signed as early as this year considering that a trade deal with the UK has already been finalised and seen as a template for FTA with major developed countries. "We are hopeful that in this year, we are going to sign. We are very close to it. I would say that one of the closest FTAs we have at the moment is the EU FTA," he said. Chadha noted that while India-UK FTA has been finalised its implementation may take about a year. "The FTA with the UK has to be passed in the UK parliament and then there is a cooling off period for getting reservations from the general public and then it will be passed and then it will come into effect. So the earliest we are looking at using the UK FTA is 12 months from now if everything goes well," he said. Chadha suggested a three-year moratorium for Indian MSMEs from carbon tax proposed by EU under Carbon Border Adjustment Mechanism (CBAM) which would come into force in January 2026. He also flagged off the EU's extension of safeguard duty on certain steel products and requested the government to find a solution to it while finalising trade deal with the EU. The EEPC India chairman also raised concerns of the mica industry and said that the mineral has been categorised as a rare earth mineral and as a result impacting its exports. "Mica has been classified as rare earth. That makes it difficult for the industry to trade in mica. I don't think mica is a rare earth. It is commonly available. India has 85% of mica deposits. In view of that we may possibly remove it from the rare earth category. Otherwise, it gets restricted for exports," he noted. Maharastra Development Commissioner ( industries) Deependra Singh Kushwah said "We are trying our best to support exports from Maharashtra and it is our duty. But the main role comes from your side (exporting community). We just facilitate and support. Actual exports are done by you and that is why Maharashtra is the second largest exporting state in the country. Engineering sector plays a very important part in exports from Maharashtra." "Last year we released our export policy under which there are multiple provisions for setting up export-oriented parks and exports-oriented special projects. The government is providing subsidy upto Rs 50 crore and Rs 100 crore for each project. And 30 such projects are to be set up in Maharashtra under this policy over a period of five years. He urged exporters to avail the benefits of the state government's exports policy. Kushwah also said that the state government is implementing a 10-point programme to boost exports. The 10-point programme is aimed at product diversification, capacity building, market access and institutional support among others. While congratulating award winners for fiscal 2021-22 at the event, Anoop Marwaha, Regional Chairman (Western Region), EEPC India said that FY22 marked a significant milestone for India, with engineering exports surpassing $100 billion for the first time, reaching an impressive US$ 112.16 billion. "This achievement reflects the resilience, adaptability, and innovation of the exporting community," he said. Marwaha recalled how global economic activities virtually came to a halt in the beginning of 2020 as countries across the world imposed complete lockdown in the wake of Covid pandemic. "It was indeed a tough job, and the awards are much deserved," he said. As many as 90 awards across seven categories were presented to the most dedicated and high-performing member exporters. Hindalco Industries, JSW Steel Industries, Tecnimont Pvt Ltd, JSW Steel Coated Products Ltd, Fiat India Automobiles Pvt Ltd, Jaydeep Industries, Jekson Vision Pvt Ltd, Federal Engineers and Oilex Engineers (India) Pvt Ltd were among the winners under different categories. UNI PC BM
United News of India
7 days ago
- Business
- United News of India
EEPC India suggests 3-year moratorium for MSMEs from EU's carbon tax
Kolkata, June 22 (UNI) Engineering Exports Promotion Council of India ( EEPC India) has suggested the Centre for a three-year moratorium for Indian MSMEs from the carbon tax proposed by the European Union (EU) under Carbon Border Adjustment Mechanism (CBAM), which would come into force in January 2026. Talking about the ongoing free trade agreement with the European Union (EU), EEPC India chairman Praksh Chadha underlined the need for a three-year delay for country's MSME sector from the carbon tax proposed by the EU under Carbon Border Adjustment Mechanism (CBAM), which would come into force in January 2026. EEPC India is the trade and investment promotion organization for the engineering sector sponsored by the Ministry of Commerce & Industry. Set up in 1955, EEPC India now has a membership base of over 12,000 out of whom 60 PC are SMEs. Under the Ministry of Commerce and Industry EEPC India, an umbrella organisation for trade and investment promotion, has about 12000 members, of which 60 percent are SMEs. Chadha was speaking in an award giving ceremony organised by EEPC India in Mumbai on Saturday evening where they conferred the National Awards for Excellence in Engineering Exports to 111 entrepreneurs across the country. He highlighted that the EU's extension of safeguard duty on certain steel products has also been hurting the local industry and requested the Centre to find a solution to it while finalising the trade deal with the EU. He urged the Ministry of Commerce and Industry to take up the interest of the Indian engineering industry while negotiating trade deals with the US and Mexico. The EEPC chairman called for bold reforms and deepening integration with global value chains. In order to improve Maharashtra as a manufacturing destination, Chadha urged the state government to make the land acquisition process easier. "Plan passing is also an issue, and a one-stop window could be provided. Also, Maharashtra is the only place where there is the Mathadi Act. We have gone into the age of mechanisation. I think most steel is being handled mechanically. No manual labour is used. Mathadi Act has lost its significance and hence should be repealed," Chadha pointed out. Earlier Maharastra Minister of Information Technology & Cultural Affairs Ashish Minal Babaji Shelar conferred EEPC India National Awards for Excellence in Engineering Exports to 111 awardees. EEPC India National Awards are presented annually to celebrate the engineering goods exporters' resilience, creativity, and ambition. JSW Steel, John Deere India, Cummins Technologies India, Larsen & Toubro, BEML, Thermax, and Apar Industries are among the winners in different categories of EEPC India National Awards for the financial year 2022-23. In FY 2022–23, India's engineering exports stood at $107 billion, contributing nearly 24 percent to the country's total merchandise exports. UNI PC BM
United News of India
17-06-2025
- Business
- United News of India
India's engineering goods export sector continues to show resilience: EEPC India
Kolkata, June 17 (UNI) India's engineering goods export sector continues to show resilience despite persistent global challenges, though it recorded a marginal dip in shipments during May 2025, the cumulative number stays positive, according to EEPC India. As per the official data, engineering goods exports declined 0.8 per cent year-on-year in May-25 to $9.89 billion as compared to $9.97 billion in the same month last year. Cumulatively, engineering goods exports during April-May period of FY26 stand at $19.40 billion as against $18.52 billion in the same period last year thus registering a growth of 4.7 pc, EEPC India chairman Pankaj Chadha said on Tuesday. Overall global situation, however, remains volatile. Uncertainty has only been mounting due to geopolitical tensions in the key parts of the world. The latest Israel-Iran conflict threatened to multiply the challenges for the exporting community. Apart from rise in input costs as a result of a jump in crude prices, there was heightened concern around blocking of Straits of Hormuz by Iran in case tensions further intensify. In that case, logistics costs could surge significantly, Chadha said. The doubling of tariff by the US on steel, steel products, and aluminum to 50 pc is already threatening to impact engineering shipments during the current fiscal. It is expected that once India and the US reach an agreement, the tariffs will be reduced, he added. UNI PC PRS
