Indian exports of engineering products including iron, steel and automobile components risk facing an estimated decline of $5 billion per year following the additional tariff imposed by the US, the Engineering Export Promotion Council (EEPC), a statutory industry-government body, said in a statement on Tuesday, April 22.
Engineering exports during 2024-25, as per the government’s trade data, hit an all-time high of $116.67 billion, marking a significant increase from $109.3 billion recorded in 2023-24.
“The additional duties imposed by the US on iron and steel and auto components are set to hit the engineering exports sector. There could be a potential drop of $5 billion in engineering shipments to the US as a consequence of it,” EEPC chairman Pankaj Chadha said in the statement.
“Besides, competition from China in other markets will emerge very strongly as they will try to push their products there with the aim to de-risk the US market,” Mr. Chadha said.
He stated that competition in markets like Latin America, Central America, the Middle East and Africa is set to heat up as exporters seek to explore new markets and this could dent profit margins. Support from the government is needed in terms of fiscal incentives and help in market access will be needed, he noted.