New Delhi [India], November 29 (ANI): Primarily driven by a sharp fall in shipments to the United States and a high base effect, India’s engineering goods exports dropped 16.71 percent year-over-year in October 2025 to USD 9.37 billion, the Engineering Export Promotion Council of India (EEPC) said on Saturday.
Engineering goods exports to several key markets recorded negative growth in October, with the ASEAN region seeing a nearly 50 percent decline to USD 1.02 billion, EEPC said in a statement.
Exports to 15 of the 25 major destinations registered year-on-year declines during October 2025. The United States remained the top market, followed by the UAE and Germany, but shipments to all three fell compared to the same month last year. Among other major destinations, exports to Saudi Arabia and the United Kingdom recorded decent growth.
Regionally, North America and the European Union remained the top two destinations for Indian engineering exports, though both experienced year-on-year declines for the second consecutive month. Significant drops were also reported in West Asia and North Africa, South Asia, Latin America, and the Commonwealth of Independent States.
The decline in shipments to the US was attributed to the combined impact of Section 232 tariffs and reciprocal tariff measures. Engineering exports to the US totaled USD 1.39 billion in October 2025, down from USD 1.63 billion in October 2024—a 14.5 percent decline. Exports to the UAE, India’s second-largest engineering market, also fell 19.3 percent to USD 667 million.
“While a high base effect was one of the reasons for the drop in exports during October this year, it was also a result of the US-administered reciprocal tariffs. Decline was also noted in other prominent export destinations, including the UAE, EU countries, and ASEAN nations. The industry believes that trade diversion due to US tariffs is one of the reasons behind the declining exports,” said Pankaj Chadha, Chairman of EEPC India.
He added, “In this difficult time, we are thankful to the government for approving more than Rs 25,000 crore for the Export Promotion Mission. Exporters are eagerly anticipating its implementation. Additionally, the allocation of Rs 20,000 crore for credit guarantee is expected to boost the morale of the engineering industry.”
Engineering exports posted a year-on-year decline in October 2025 after four consecutive months of growth. This marked the second monthly drop in the 2025–26 fiscal year, following a decline in May.
Panel-wise data showed that the overall downturn was led by more than an 80 percent fall in exports of aircraft and spacecraft, as well as ships, boats, and floating structures. Other major segments, including electrical machinery, iron and steel products, industrial machinery, and aluminum products, also recorded year-on-year declines. In total, 23 of 34 engineering panels saw negative growth in October.
According to government quick estimates cited by EEPC, engineering exports accounted for 27.27 percent of India’s total merchandise exports in October 2025, slightly below the previous month’s 27.80 percent.
Despite the monthly setback, engineering exports grew on a cumulative basis. During April–October 2025, exports stood at USD 68.73 billion, up from USD 67.60 billion during the same period last fiscal, registering 1.68 percent year-on-year growth. Over this seven-month span, 27 out of 34 engineering panels recorded positive growth, while the remaining seven, including aluminum and nickel products, posted declines, EEPC said. (ANI)
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