India’s engineering goods exports to the US declined 14.5 per cent (year-on-year) in October 2025 to $1.39 billion against $1.63 billion in October 2024 hit by the combined impact of reciprocal tariffs and sectoral tariffs (section 232) on items such as steel and auto parts.
Not just the US, exports of engineering goods — the country’s top export item — declined in October 2025 to as many as 15 of the 25 key destinations, per an analysis by the Engineering Export Promotion Council (EEPC) of India.
“Engineering goods exports to many key markets recorded negative growth in October this year, with the ASEAN region recording a nearly 50 per cent decline to $1.02 billion,” it noted.
Overall engineering goods exports in October 2025 declined 16.71 per cent (y-o-y) to $9.37 billion, pulled down largely by a sharp fall in shipments to the US and a high base effect, the council observed.
Segments hit
The fall in October 2025 was led by more than 80 per cent decline in exports of ‘aircrafts and spacecraft’ and ‘ships, boats and floating structures’, according to panel-wise analysis of the data.
The other key segments, such as ‘electrical machinery and equipment’, ‘products of iron and steel’, ‘industrial machinery’, and ‘aluminium and products’, also registered a fall. As many as 23 of 34 engineering panels witnessed a decline in October 2025.
“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 countries , among others. The industry believes that trade diversion due to US tariffs is one of the reasons behind the declining exports,” said Pankaj Chadha, Chairman, EEPC India.
The US imposed a total of 50 per cent tariffs on Indian goods, which include a 25 per cent penalty for Russian oil purchase, that got implemented in August-end this year.
In the case of the UAE, India’s second biggest market for engineering goods, exports fell 19.3 per cent (y-o-y) in October 2025 to $667 million.
Exporters welcomed the government’s approval to the ₹25,000 crore Export Promotion Mission (EPM) which will help them deal with the difficult times, Chadha said. “Exporters are eagerly anticipating its implementation. Additionally, the allocation of ₹20,000 crore for credit guarantee is also expected to boost the morale of the engineering industry,” he said.
The share of engineering in total merchandise exports was recorded at 27.27 per cent in October 2025, which was a bit lower than that of the previous month at 27.80 per cent, per quick estimates of the October data shared by the government.
Despite the sharp decline in October 2025, engineering exports posted an overall growth in the April–October 2025 period. In the first seven months of the fiscal, engineering exports registered a growth of 1.68 per cent at $68.73 billion against $67.60 billion in the same period last year.
