India’s engineering goods exports grew 4.91 per cent year-on-year in August 2025, supported by higher shipments of automobiles, auto components, industrial machinery and some basic metals, according to data shared by EEPC India.
Exports in August were valued at USD 9.9 billion compared to USD 9.4 billion in the same month a year earlier. The US remained the top market, with shipments rising 7.2 per cent year-on-year to USD 1.68 billion. However, on a sequential basis, exports fell 5 per cent from July when shipments had touched USD 10.4 billion.
EEPC India Chairman Pankaj Chadha said the growth was encouraging despite global headwinds such as reciprocal and 232 tariffs from the US and rising logistics costs. “In these difficult times, the FTA signed with the UK will become a major benefit to the industry as it will further pave our presence in the UK market,” he said.
He added that ongoing negotiations for an FTA with the European Union should also address non-tariff barriers like CBAM to make such agreements more effective. Chadha urged the government to support Indian exporters in overseas marketing efforts and to address challenges, including export credit, rising raw material costs and shipping expenses.
Among key markets, exports to the UK, Germany, Italy, the UAE, South Africa, Bangladesh, France and the Netherlands reported positive growth. By contrast, shipments to Turkey fell 42.3 per cent year-on-year to USD 162 million, while exports to Indonesia dropped 65.6 per cent to USD 103.6 million. Exports to China also declined 7.4 per cent to USD 242.5 million.
Cumulatively, engineering exports for April to August 2025-26 rose 5.86 per cent to USD 49.24 billion from USD 46.52 billion in the same period last year. The sector’s share in India’s total merchandise exports was 28.2 per cent in August.
Automobiles and auto components led growth in August, recording a 21 per cent rise to USD 2.38 billion. Out of 34 engineering panels, 27 registered positive growth during the month, though categories such as nickel products, electrical machinery, aircraft, ships and hand tools reported declines.
