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?India’s Engineering Exports Up 2.9% in September Despite US Drop?

India’s engineering goods exports rose 2.93% year-on-year to $10.11 billion in September 2025, supported by strong demand from Europe and emerging markets, even as shipments to the US fell 9.4%, according to the Engineering Export Promotion Council of India (EEPC).

????The sector — which makes up about 25% of India’s total exports — saw strong growth in iron and steel (up 17%) and automobiles (up 33%) , offsetting an 18% fall in industrial machinery.

????Exports to the US stood at $1.4 billion , while those to the UAE fell 5.3% to $637 million. Meanwhile, shipments to Germany, the UK, Saudi Arabia, Singapore, and Italy jumped between 18% and 45%.

????EEPC said the rupee’s 5.38% year-on-year depreciation to ?88.79 per dollar supported exporters despite global trade tensions. The fall was driven by capital outflows, higher borrowing, and rising gold imports.

????Globally, trade grew by about $500 billion in the first half of 2025, showing steady 2–2.5% quarterly growth despite protectionist policies and geopolitical risks.

????India’s engineering exports have now grown for four straight months, driven by stronger trade with S ub-Saharan Africa, ASEAN, and Latin America, in line with UNCTAD’s view of South–South trade as a key global growth driver.

????Despite reciprocal tariffs, EEPC noted that US imports of Indian steel and aluminium still rose during September, showing limited impact from Section 232 tariffs.

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