Engineering exports see a decline in 15 key markets

The 16.71 % decline of engineering exports in October 2025 as against October last year is driven by the fall in shipments to 15 of the 25 key destinations. Among the export products, 23 of the 34 engineering panels registered year-on-year negative growth, according to trade analysis by the EEPC India.

Exports to the U.S., EU, and ASEAN markets have seen a drop. “I think we are facing tougher competition from China and Vietnam who have also lost markets in the U.S. and are trying to make up in the Asian region,” said Pankaj Chadha, chairman of EEPC India.

“The industry believes that trade diversion due to the U.S. tariffs is one of the reasons behind the declining exports. In this difficult time, we are thankful that the DGFT allocated more than ₹25,000 crore for Export Promotion Mission. Exporters are eagerly anticipating its implementation,” said the EEPC India in a press statement.

The exports in October 2025 were $9.37 billion as against $11.25 billion in October 2024.

The U.S. and the EU remained the top two exporting regions for Indian engineering but shipments to both the regions declined in October 2025. Significant decline is also noted in WANA, ASEAN, South Asia, Latin America and CIS countries.

Among the top 10 destinations, only exports to Saudi Arabia (16.4 %), the UK (6.7 %), and South Africa (14%) grew.

The decline in exports to the U.S. is fuelled by the combined impact of Section 232 tariffs and the reciprocal tariff, it said.

In Coimbatore, a component manufacturer who supplies to an automobile major in the U.S. said, his orders have moved to countries with a lower tariff. “If the tariffs reduce, I will get back the orders. However, till then, shipments to the U.S. will be minimal,” he said.