As the recent WTO Trade Update maintains that the global merchandise trade is now projected to grow at 0.9 percent in 2025 which is slightly up from the negative or -0.2 percent growth predicted in April 2025. While this paints a positive picture, economists are quite apprehensive – according to them this surge is a result of higher trade activities in the US before the tariffs kick in. The economists caution that the impact of higher tariff will definitely impact trade and will be visible next year – next year’s expected trade growth has been brought down to 1.8 percent from the earlier 2.5 percent. The shadow of tariff uncertainty remains the most disruptive force impacting global trade activities. The situation has been further exacerbated by ongoing conflicts across the globe. All in all, as I write this, global trade continues to remain fraught with challenges.

It gives me some pleasure to say that even in this adverse situation, India has continued its export growth journey. In April-August 2025, India’s merchandise exports grew by 2.31 percent. This growth has been driven by several sectors including electronics, pharmaceuticals, chemicals and of course Engineering. India’s engineering exports continued its growth journey in the month of August recording a growth of 4.9percent over last year. In cumulative terms, it recorded a growth of 5.86 percent which is higher than the merchandise export growth of 2.52 percent during the same period. This growth comes at a time when our exporters are facing significant challenges in the largest export market for Indian engineering industry – USA due to Section 232 and reciprocal tariffs. Exports to USA increased by 11.53 per cent in Apr-August 2025 which indicates a significant achievement for the exporting community given the above background. India’s exports also increased in the EU region by around 13 percent in during April-August 2025 – export growth was noted in Germany, Italy, Netherlands, France, Belgium, etc. Ex ports to UK also exhibited a positive growth of 18.7 percent. This becomes more relevant, as India recently signed an FTA with UK. Panel-wise growth was exhibited by both ferrous and non-ferrous metals barring aluminium, nickel and zinc. Overall, India’s performance remains fairly positive in August 2025.

I am also delighted to mention that EEPC India celebrated70 glorious years in September. This is a testament of the journey that began in 1955 when India’s engineering exports stood at a modest 10 million US dollars and grew to a whopping USD 116.7 billion in 2024-25. This achievement is not just about numbers. It reflects the resilience, innovation, and excellence of Indian engineering. It is the story of countless entrepreneurs, engineers, and workers who believed in India’s potential and made it a reality.

However, along with this celebration, we must also acknowledge the challenges that lay ahead as mentioned in the beginning. I strongly believe that in this challenging time the FTA signed with UK will bring major benefit to the industry as it will further pave our presence in the UK market although, the FTA does not address the CBAM concerns which may act as a significant barrier. As India negotiates another FTA with EU, we hope it would address the non-tariff barrier concerns such as CBAM to make the FTAs truly effective.

In this context, let me also thank the Government for rationalising the GST rates. We are very hopeful that this step will not only increase domestic demand but also encourage more domestic manufacturing and import substitution. Furthermore the recent extension of RoDTEP for DTA units, Advance Authorization holders, SEZs, and EOUs until 31st March 2026 would also be a significant support for the exporting community. Let me also add showcasing India’s engineering prowess has also become critical in the current context and EEPC as the leading export promotion council is taking this very seriously. In coming months, we are participating in Bharat Health Global Expo which is happening in September 2025. EEPC India is also part of the India MSME Defence Week 2025 which is also taking place in September. We are also taking part in Alumex India which is also happening in Delhi in September. Oth er than that, EEPC India is also organising the India Pavilion in International fastener Expo in Las Vegas, USA. You all are requested to participate in the relevant exhibitions, to gain more recognition for your products in the global market.