India's Engineering Exports Defy Challenges, Charting Growth Ahead

India's engineering goods exports demonstrated resilience and growth for the fourth straight month in September, with a 2.93% year-on-year increase to $10.11 billion, reported EEPC India.

The growth occurred despite a sharp 9.4% decline in shipments to the United States, India's largest market for engineering goods, attributed to punitive tariffs imposed during the Trump administration. Though overall exports surpassed the $10 billion threshold for the second time this fiscal year, the pace of growth moderated compared to a nearly 5% surge in August 2025, according to the Engineering Exports Promotion Council (EEPC).

Exports to the United Arab Emirates also saw a decline, but a significant 14.4% increase in exports to China, along with positive growth in shipments to ASEAN, North-East Asia, Sub-Saharan Africa, Latin America, and South Asia, contributed to the sector's growth. EEPC India Chairman Pankaj Chadha emphasized the importance of South-South trade and free trade agreements with Latin American and GCC countries, despite challenges like high raw material prices, limited export funding, and export controls on critical raw materials.