According to the note, unlike most other global markets, engineering exports to the world's largest economy remained in positive territory both for June and the first quarter of the current fiscal.
The US had ended preferential treatment to various goods supplied from India from June 5, 2019.
"Though our engineering exports to the US went up to $990.5 million in June 2019 from $913 million in the same month of 2018, registering a growth of 8.5 per cent, we have got to be watchful whether and how the withdrawal of the GSP by the US is panning out," EEPC India Chairman Ravi Sehgal said in the note.
As per data for the cumulative three-month period ending June, shipments of engineering goods to the US went up to $2.92 billion, showing a growth of 5.2 per cent year on year from $2.78 billion in the April-June period of 2018-19.
However, contrary to this trend, India's overall engineering exports during June 2019 fell by 2.31 per cent to $6.36 billion from $6.51 billion, while for the April-June period the decline was by 1.85 per cent to $20 billion, from $20.04 billion.
"The termination of US-GSP on June 5, 2019, does not seem to have an overly negative impact on Indian exports, at least in June 2019. This could be because exports have already been contracted out and the margins lost may have been shared by both the exporters and importers. We will need to monitor the trend in the next few months," the report said.
Besides, the report pointed out that the major dent in the engineering exports has been witnessed for the European Union (EU), where Indian shipments were down by over 17 per cent in June, 2019 to $1.14 billion from $1.38 billion in the same month of the previous fiscal.
"Several restrictions in the EU markets which are kind of tariff and non-tariff barriers have impacted our exports to the European markets and we have been urging the government to take up the issue with the EU headquarters," the apex organisation of Indian engineering exporters said.
( With inputs from IANS )