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India’s engineering goods exports grow in September despite decline in shipments to US: EEPC
Oct-31-2025

The Engineering Exports Promotion Council (EEPC) has said that India’s engineering goods exports maintained a growth trajectory for the fourth consecutive month in September, with a 2.93 per cent rise year-on-year to $10.11 billion. It said despite a sharp 9.4 per cent decline in shipments to the US, the largest market for Indian exporters of engineering goods, the growth was achieved. According to the EEPC, while overall exports crossed the $10 billion mark for the second time this fiscal, the growth rate moderated from the nearly 5 per cent witnessed in August 2025.

It said the US, which remains the top destination for Indian engineering goods, saw imports drop to $1.4 billion in September from $1.55 billion in the same month last year, reflecting the ‘impact of punitive tariffs imposed by the Donald Trump administration’. Shipments to the second-largest market, the UAE, also declined to $636.86 million from $672.39 million a year ago. However, a 14.4 per cent year-on-year jump in exports to China, which reached $302.21 million, and decent growth in shipments to ASEAN, North-East Asia, Sub-Saharan Africa, Latin America, and South Asia helped the sector stay in positive territory.

EEPC India chairman Pankaj Chadha said it is a ‘good sign’ that overall engineering exports grew despite the tariff-related challenges in the US market. He said ‘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 (free trade agreements) with Latin American countries such as Chile, Peru, and MERCOSUR (South American trade bloc) and GCC (Gulf Cooperation Council) countries’. However, he flagged several challenges for the sector, including high raw material prices, lack of access to export funding, and export controls by other countries on critical raw materials, such as ‘the rare-earth export controls by China’.

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