India’s Engineering Goods Exports Rise 2.93% In September, Extend Growth Streak To Fourth Month

Kolkata, October 31, 2025: Exports of engineering goods from India maintained their upward trajectory for the fourth consecutive month in September, registering a year-on-year growth of 2.93% to USD 10.11 billion, according to data released by the Engineering Exports Promotion Council (EEPC) India.

Even with shipments to the United States, the largest destination for engineering exports from the country, dropping sharply by 9.4%, the net outcome remained positive; exports passed the $10 billion mark for the second time in this fiscal year, although the momentum slowed from a nearly 5% increase in August 2025.

US and UAE Shipments Decline

US imports fell to USD 1.4 billion in September, down from USD 1.55 billion a year ago, as Trump’s tariffs continued to affect trade flows. Shipments to the UAE, India’s second-largest market for engineering goods, also declined to USD 636.86 million from USD 672.39 million last year.

China And Emerging Markets Drive Growth

China and other emerging markets are stepping in to fill the gap. Exports to China rose 14.4% to $302.21 million. At the same time, demand remained solid in regions such as ASEAN, Northeast Asia, Sub-Saharan Africa, Latin America, and South Asia. That boost helped offset the decline in exports to major Western markets.

EEPC India chairman Pankaj Chadha called the performance encouraging. He added that the sector’s resilience highlights the adaptability and determination of India’s engineering exporters in navigating a volatile market environment.

“In the coming years, South-South trade will play a crucial role in shaping global commerce, and India is well-positioned as it advances free trade agreements with Latin American nations like Chile, Peru, and the MERCOSUR bloc, as well as with GCC countries,” Chadha said.

Sector Challenges Remain

Chadha highlighted a few real challenges the industry faces right now. Raw material prices are still high. Export financing remains tough to get. And some countries have imposed restrictions on key inputs, such as rare earth elements, which China largely controls. All of this adds extra pressure.

Half-Yearly Performance

In the first half of FY26, engineering exports grew 5.35% year over year to $59.36 billion. That’s up from $56.34 billion in the same stretch the previous year. In September 2025, this sector accounted for 27.8% of India’s merchandise exports.

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