Engineering exports to US rise 18% despite tariffs
New Delhi, Nov. 5 -- India's engineering goods exports to the US rose 18% year-on-year to $12.16 billion in the first half of the current financial year, despite Washington imposing steep tariffs on steel, aluminium and their derivatives, according to provisional government and industry data.
The US remained the top destination for Indian engineering goods in September as well as during April-September 2026, the Engineering Export Promotion Council of India (EEPC India) said. Shipments to the US surged 55.7% year-on-year to $2.19 billion in September despite punitive tariffs on iron and steel and aluminium, it said.
Under Section 232 of the US Trade Expansion Act of 1962, Washington imposed a 25% tariff on Indian steel and raised the levy on aluminium from 10% to 25% in February 2025. In June that year, it increased tariffs on both metals and their derivatives to 50%. Section 232 allows the US President to restrict imports deemed to "threaten to impair" national security.
India exported iron and steel worth $1.09 billion to the US in April-September 2026, compared with $394 million in the same period last year, a jump of 176.6%, according to detailed export data. Exports of certain iron and steel products also rose more than 15% year-on-year to $1.8 billion during the period. Shipments of aluminium and its products to the US increased more than 48% to about $747 million.
Engineering goods consistently account for around one-fourth of India's merchandise exports, with their share rising from 24% in 2016-17 to an estimated 28% in 2025-26, EEPC India said.
Commerce ministry data show engineering goods contributed $70.87 billion of India's total merchandise exports of $259.89 billion in the first half of 2026-27, making the sector the largest export category. The US accounts for about 16% of India's engineering goods exports.
Major engineering export products include copper and copper products, iron and steel, electrical machinery and equipment, aluminium and its products, and vehicles such as two-wheelers and three-wheelers. China, South Korea and the UK are also major markets.
India's engineering exports continued to grow for the sixth consecutive month in 2026-27, with shipments estimated at $12.17 billion in September, up 20.91% from $10.06 billion a year earlier, EEPC India said. Thirty of 34 engineering product panels recorded year-on-year growth in September, while office equipment, machine tools, lead and products, and zinc and products registered declines, it said.
Engineering exports to China rose 42% to $430.1 million in September, from $302.3 million a year earlier. Shipments to the United Arab Emirates fell 4.5% during the month, while exports to Saudi Arabia dropped 26.2%, reflecting continued logistics disruptions in the region due to the ongoing conflict, EEPC India said. Exports to Oman, however, rose 59% year-on-year to $136.3 million, which the council attributed to safer transport routes and the India-Oman free trade agreement that came into force in June....
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