Decline in Engineering Exports
In October 2025, engineering exports faced a significant downturn of 16.71% compared to the same month last year. This drop is attributed to reduced shipments to 15 out of 25 major destinations. According to trade analysis from EEPC India, 23 of the 34 engineering panels exhibited negative growth year-on-year.
Impact on Key Markets
The U.S., EU, and ASEAN markets have all reported a decrease in exports. Pankaj Chadha, chairman of EEPC India, remarked, “We are experiencing increased competition from China and Vietnam, who are also trying to regain market footholds in the U.S. after losing ground.”
Factors Influencing the Decline
Trade diversion due to U.S. tariffs is believed to contribute significantly to the drop in exports. In this challenging environment, the EEPC India expressed gratitude for the allocation of over ₹25,000 crore for the Export Promotion Mission, with exporters eagerly awaiting its rollout.
Export Figures
October 2025 saw exports totaling $9.37 billion, a decrease from $11.25 billion in October 2024.
Regional Export Trends
While the U.S. and EU remain the top two regions for Indian engineering exports, both experienced a decline in shipments during October 2025. There were notable drops in regions like WANA, ASEAN, South Asia, Latin America, and CIS countries as well.
Growth Among Select Destinations
Among the top ten destinations for exports, only Saudi Arabia (16.4%), the UK (6.7%), and South Africa (14%) recorded growth.
Tariff Impacts
The decline in U.S. exports has been exacerbated by the effects of Section 232 tariffs and reciprocal tariffs. A manufacturer in Coimbatore, who supplies components to a major automobile firm in the U.S., mentioned that his orders have shifted to countries with lower tariffs, adding, “If tariffs diminish, I expect to receive orders again. Until then, shipments to the U.S. will remain minimal.”