Business EconomyPosted at: Oct 30 2025 3:59PM


Engineering goods exports rise in Sep-25 despite a sharp 9.4 percent drop in shipments to US

Kolkata, Oct 30 (UNI) India's engineering goods exports continued their growth run for the fourth straight month in September 2025, but shipments to the US declined during the month, reflecting the impact of punitive tariffs imposed by the Trump administration.
The total engineering goods exports to the US, the largest market, declined 9.4 percent year-on-year to USD 1.40 billion in September 2025 as compared to USD 1.55 billion in September 2024. Engineering exports to the UAE, the second biggest market for Indian engineering goods, also registered a decline in September this year.
The value of total engineering goods exports to the UAE in the month of September this year stood at USD 636.86 million as against USD 672.39 million in the same month last year.
Notably, engineering goods exports to China recorded a 14.4 pc year-on-year rise to US$302.21 million in September 2025 as compared to USD 264.15 million in September 2024.
Overall, engineering goods exports grew 2.93 pc year-on-year in September 2025 to US$10.11 billion as compared to USD 9.83 billion in the corresponding month last year. The growth in September, however, showed moderation compared to the previous month when it had increased by nearly 5 pc in August, according to EEPC India today.
Engineering exports recorded an increase on a month-on-month basis, also as it crossed USD 10 billion for the second month in this fiscal after July 2025 but the higher base of September 2024 resulted in a slower growth rate on a year-on-year basis.
The growth in September 2025 was basically attributed to growth in shipments of lead and products of lead, motor vehicles/cars, two and three wheelers, iron and steel, and electric machinery, among others.
Region-wise, decent growth in exports to ASEAN, North-East Asia, Sub-Saharan Africa, Latin America, and South Asia helped engineering exports grow during the month of September 2025.
"It is definitely a good sign that despite a 9.4 pc decline in engineering exports to the USA due to the tariff escalation from the end of August 2025, engineering exports from India are still growing," said EEPC India chairman Pankaj Chadha.
He stated that in the coming years, South-South trade will be a major driver of global trade, and India is in the right direction as it negotiates key FTAs with Latin American countries such as Chile, Peru, and MERCOSUR and GCC countries.
"Going forward, several challenges are still plaguing the domestic engineering sectors, including high raw material prices, lack of access to export funding, export controls by other countries on critical raw material, such as the Rare-Earth export controls by China, etc. We are, though hopeful that with proper guidance from the Government, we will be able to face these challenges and continue the growth streak." Chadha said.
In September 2025, 23 out of 34 engineering panels witnessed positive year-on-year growth, while 11 engineering panels, including mainly industrial boilers, pumps and valves, air-conditioning and refrigeration machinery, and aircraft and spacecrafts, witnessed a decline in exports.
On a cumulative basis, engineering exports recorded 5.35 pc year-on-year growth during the first half of fiscal 2025-26 as it went up to USD 59.36 billion in April–September period of 2025-26 from USD 56.34 billion during the same period last fiscal.
The share of engineering in total merchandise exports was recorded at 27.8 pc in September 2025, while it was recorded at around 27 pc on a cumulative basis during April–September 2025-26.
The latest version of UNCTAD’s Global Trade Update, published this month, paints a significantly positive picture of global trade when compared to its previous updates.
It mentions that global trade expanded by almost USD 500 billion in the first six months of 2025 despite significant threats regarding the USA’s tariff imposition, protectionist policies in the EU, and ongoing geographical conflicts.
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