The new Financial Year started with a positive note for the Indian engineering community. As per the latest data, in the first month of the Financial Year 2025-26, India’s engineering exports registered a double-digit growth of 11.28 percent, reaching USD 9.5 billion. This comes after Indian engineering exports achieved a 6.74 percent growth in exports in the last Fiscal, 2024- 25, but experienced a decline of around 3.92 percent in March- 2025 exports . The export growth was noted in almost all panels and destinations which is a very positive sign. The export growth exceeded the merchandise exports which grew by 9.02 percent in April 2025.

The export performance comes at a time when India and the whole world is going through geo-political transformations that are also reshaping the global trade dynamics. As per the latest WTO Global Trade Update, while the WTO economists were confident of a gradual trade recovery in the beginning of 2025, a slew of protective tariff measures majorly adopted by the US has prompted them to re-look at the trade landscape – this has also resulted in a downward revision of the global merchandise trade. While earlier Baseline projections suggested a growth of 2.7 percent in 2025 and 2.9 percent in 2026, the revised suggestions indicate a 0.2 percent contraction in merchandise trade in 2025 followed by a 2.5 percent increase in 2026. The possible “reinstatement of reciprocal tariffs” by the US has emerged as the most significant threat that can impact global trade – if enacted fully this can bring down global merchandise trade by 0.6 percent in 2025. This accompanies with the growing trade policy uncertainty across the world could result in almost 1.5 percent decline in global trade in 2025. Given these uncertainties and risks the performance of the Indian engineering exporters are indeed laudable.

I would also like to take this opportunity to congratulate our Government for concluding the crucial India-UK Free Trade Agreement on May 6th 2025. These FTAs create opportunities for Indian exporters in major trade destinations despite the growing challenges of non-tariff barriers. I am aware of the fact that India is also speedily negotiating the India-EU FTA. I am very hopeful that conclusion of this FTA along with the UK trade deal will strengthen our position in the Europe even when the countries there are becoming more protectionist. India is also negotiating a Bilateral Trade Agreement (BTA) with the US. While previously significant gain was anticipated from this deal given the high reciprocal tariffs imposed by US on China. However, both the US and China have mutually agreed to reduce excessively high tariffs for 90 days that have been imposed earlier on imports of each other. On the other hand this may create some opportunities for our exporters in China as they ramp up their finished goods production for the US market.

Within our neighbourhood too, the trade dynamics has been transforming following the new geo-political alliances. The recent port restrictions imposed by Bangladesh on selected Indian exports and the retaliatory measures adopted by India restricting Bangladeshi imports across land ports is an indicator of such changes. The industry is watching cautiously to understand the full impact of these frequent fluctuations in global trade dynamics. We at EEPC are also trying to provide our inputs and suggestions to the Government to the best of our abilities to veer through this global trade scenario.

At this moment when global trade relations are getting re-defined, it is important for us to showcase our capability to the global markets to strengthen our position in the global trade. With this objective, EEPC India is continuing to participate in a number of global exhibitions to give our exporting community a chance to display their products in some of the major global markets. EEPC India has been in constant touch with the Government of India for support in these endeavours. Some of the major exhibitions that EEPC will be participating in the coming months include CWIEME, Berlin, world’s largest exhibition for coil winding, transformer, generator and electric motor manufacturing, and e-mobility, SUBCON 2025 in UK, JIMEX in Jordan and EUROBIKE in Frankfurt. I urge our exporters to come and participate in such events through EEPC and showcase their expertise to the global buyers.