EEPC India President Pankaj Chadha said that India exports USD 20 billion worth of engineering products to the US annually, of which USD 5 billion would be directly affected by the tariffs. However, Chadha expressed optimism that the improved trade dialogue following Prime Minister Narendra Modi's visit to the US could mitigate the impact of these tariffs.
US President Donald Trump's additional tariffs on steel and aluminum as of March 12 are expected to affect global supply chains. Especially countries like Canada, Brazil and Mexico are expected to suffer the most.
Hope for a Trade Agreement
India is trying to convince the US to waive tariffs on steel and aluminum imports as part of bilateral trade agreement (BTA) negotiations. EEPC President Chadha stated that they believe that the trade agreement, which is expected to be signed by the end of the year, will have a positive impact on exports in general.
Engineering Exports Continue to Grow
Exports of engineering products grew for the ninth consecutive month in January 2025, up 7.4% year-on-year to USD 9.41 billion. In the April 2024-January 2025 period, total engineering exports rose 9.8% to USD 96.74 billion. In the same period, India's total merchandise exports increased by 1.39% to USD 358.91 billion.
While the US remained India's largest export market, the West Asia and North Africa (WANA) region stood out as the largest regional market. While 21% of India's engineering exports went to this region, Latin America also showed significant growth. Chadha emphasized that market diversification strategies played an important role in the export growth in these regions.
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