Engineering exports from India turned out quite impressive in the month of July 2025 with shipments crossing USD 10 billion for the first time in fiscal 2025-26 and recorded highest year-on-year growth on a monthly basis in the current fiscal so far. Indian engineering exports in July 2025 stood at USD 10.43 billion as against USD 9.16 billion in July 2024, securing 13.81 percent growth. On a cumulative basis, engineering exports recorded 6.1 percent year-on-year growth as it went up to USD 39.34 billion in Apr –Jul 2025-26 from USD 37.08 billion during the same period last fiscal. The share of engineering in total merchandise exports rose sharply to 28 percent in July 2025 from 26.4 percent in July 2024 and also went up on a cumulative basis to 26.4 percent during Apr-Jul 2025-26 from 25.6 percent during the same period last fiscal. The growth run of engineering exports in this fiscal was attributed to good performances of product segments namely Electric machinery and equipment, Motor vehicles/Cars, Products of Iron and steel, and Industrial machinery among others while Aircrafts and spacecraft was the biggest spoilsport. North America remained the top export destination followed by the European Union, both showing healthy growth in this fiscal till date. Latin America and Sub-Saharan Africa stood out with impressive double-digit growth while Northeast Asia also performed well with a double digit growth. CIS, WANA and Other Europe were the damagers with negative cumulative export growth. However, within CIS, engineering exports to Russia witnessed excellent growth during July 2025. Among the top destination countries, UAE, Saudi Arabia and Singapore conceded decline in engineering exports from India during this fiscal.
| Trade Flow | Export figures(in $ billion) | Growth (%) | ||||
|---|---|---|---|---|---|---|
| Jul-2024 | Jul-2025 | Apr-Jul 2024-25 | Apr-Jul 2025-26 | Jul-2025 over Jul-2024 | Apr-Jul 2024-25 over Apr-Jul 2025-26 | |
| Engineering exports | 9.16 | 10.43 | 37.08 | 39.34 | 13.81% | 6.08% |
| Overall merchandise exports | 34.71 | 37.24 | 144.76 | 149.20 | 7.29% | 3.07% |
| Share of engineering (%) | 26.41% | 28.00% | 25.62% | 26.36% | --- | --- |
| Service Exports | 30.60 | 31.03 | 119.07 | 128.43 | 1.41% | 7.86% |
Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India.
The monthly engineering export figures for 2025-26 vis-à-vis 2024-25 are shown below as per the latest DGCI&S estimates:
US$ million
| Month | 2024-25 | 2025-26 | Growth (%) |
|---|---|---|---|
| April | 8557.11 | 9512.84 | 11.17 |
| May | 9974.13 | 9889.11 | -0.85 |
| June | 9386.21 | 9506.26 | 1.28 |
| April - June | 27917.46 | 28908.21 | 3.55 |
| July | 9162.17 | 10427.22 | 13.81 |
| April - July | 37079.63 | 39335.43 | 6.08 |
Source : DGCIS, Govt. of India
We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during June 2025 over June 2024 as well as in cumulative terms during April-July 2025-26 vis-à-vis April-July 2024-25. The data clearly shows that top 25 countries contribute 74.5% of total engineering exports.
(US$ million)
| Countries | Jul-2024 | Jul-2025 | Growth (%) | April-July 2024-25 | April-July 2025-26 | Growth (%) |
|---|---|---|---|---|---|---|
| U S A | 1523.14 | 1815.78 | 19.21% | 6174.54 | 6952.01 | 12.59% |
| U ARAB EMTS | 629.78 | 574.44 | -8.79% | 2623.27 | 2427.23 | -7.47% |
| GERMANY | 332.07 | 457.56 | 37.79% | 1343.9 | 1616.83 | 20.31% |
| U K | 274.75 | 402.5 | 46.49% | 1287.63 | 1539.56 | 19.57% |
| SAUDI ARAB | 411.5 | 381.79 | -7.22% | 1819.64 | 1478.03 | -18.77% |
| SINGAPORE | 397.46 | 353.32 | -11.1% | 1366.68 | 1590.23 | 16.36% |
| ITALY | 226.29 | 292.38 | 29.21% | 1069.33 | 1076.36 | 0.66% |
| MEXICO | 340.65 | 290.56 | -14.71% | 1269.8 | 1076.36 | -15.23% |
| CHINA P RP | 194.43 | 263.94 | 35.75% | 816.98 | 845.16 | 3.45% |
| JAPAN | 165.34 | 256.55 | 55.17% | 707.84 | 893.23 | 26.19% |
| KOREA RP | 230.25 | 236.7 | 2.8% | 848.53 | 951.83 | 12.17% |
| BRAZIL | 180.19 | 227.83 | 26.44% | 726.87 | 858.98 | 18.17% |
| SOUTH AFRICA | 218.08 | 227.43 | 4.29% | 717.52 | 847.19 | 18.07% |
| THAILAND | 161.03 | 202.34 | 25.65% | 637.96 | 729.33 | 14.32% |
| FRANCE | 144.86 | 200.57 | 38.46% | 614.18 | 738.85 | 20.3% |
| TURKEY | 265.84 | 183.1 | -31.13% | 1229.4 | 699.95 | -43.07% |
| NETHERLAND | 170.76 | 179.31 | 5% | 653.04 | 732.93 | 12.23% |
| NEPAL | 178.68 | 178.44 | -0.13% | 719.66 | 796.46 | 10.67% |
| BELGIUM | 112.17 | 177.61 | 58.34% | 463.68 | 594.8 | 28.28% |
| BANGLADESH PR | 153.76 | 174.71 | 13.62% | 696.58 | 687.44 | -1.31% |
| INDONESIA | 168.06 | 168.64 | 0.34% | 643.11 | 571.94 | -11.07% |
| SPAIN | 118.14 | 134.42 | 13.78% | 443.02 | 483.51 | 9.14% |
| MALAYSIA | 124.73 | 133.13 | 6.73% | 492.96 | 404.37 | -17.97% |
| VIETNAM SOC REP | 115.74 | 127.95 | 10.56% | 469.4 | 472.47 | 0.66% |
| SRI LANKA DSR | 82.46 | 124.31 | 50.75% | 361.24 | 420.74 | 16.47% |
| Total engineering exports to top 25 countries | 6920.18 | 7765.31 | 12.21% | 28196.78 | 29485.8 | 4.57% |
| Total engineering exports | 9162.17 | 10427.22 | 13.81% | 37079.63 | 39335.43 | 6.08% |
Source : DGCI&S
The following table depicts region wise India’s engineering exports for April-July 2025 as compared to April-July 2024
(US$ million)
| Regions | Jul-2024 | Jul-2025 | Growth (%) | April-July 2024-25 | April-July 2025-26 | Growth (%) |
|---|---|---|---|---|---|---|
| NORTH AMERICA | 1956.95 | 2212.92 | 13.08% | 7860.16 | 8456.93 | 7.59% |
| EUROPEAN UNION | 1627.57 | 1901.12 | 16.81% | 6357.65 | 7001.89 | 10.13% |
| WANA | 1410.94 | 1463.83 | 3.75% | 6011.44 | 5638.67 | -6.2% |
| ASEAN | 1038.08 | 1059.47 | 2.06% | 3988.11 | 4156.86 | 4.23% |
| N E ASIA | 670.94 | 864.95 | 28.92% | 2736.44 | 3093.06 | 13.03% |
| SSA( Sub Saharan Africa) | 711.03 | 808.08 | 13.65% | 2473.01 | 2994.17 | 21.07% |
| LATIN AMERICA | 463.13 | 664.17 | 43.41% | 1930.78 | 2401.14 | 24.36% |
| OTHER EUROPE | 565.16 | 623.35 | 10.3% | 2697.85 | 2394.46 | -11.25% |
| SOUTH ASIA | 475.96 | 530.52 | 11.46% | 2022.72 | 2125.61 | 5.09% |
| CIS | 130.96 | 150.47 | 14.89% | 551.87 | 490.32 | -11.15% |
| OCEANIA | 107.87 | 132.78 | 23.09% | 442.46 | 533.76 | 20.64% |
| OTHERS | 3.58 | 15.55 | 334.92% | 7.14 | 48.55 | 580.18% |
Note : *Figures have been rounded off.
Source : DGCI&S **Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.
In this section we look at the Engineering Panel wise exports for the month of July 2025 vis-à-vis July 2024 as well as the cumulative exports for April-July 2025-26 vis-à-vis April-July 2024-25. These are indicated in the tables below.
(US$ million)
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
| IRON AND STEEL | 732.49 | 800.5 | 9.28% | 3081.25 | 3195.69 | 3.71% |
| PRODUCTS OF IRON AND STEEL | 785.75 | 996.64 | 26.84% | 3115.51 | 3484.87 | 11.86% |
| Sub Total | 1518.24 | 1797.14 | 18% | 6196.76 | 6680.56 | 8% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Aluminium and products made of Aluminium | 540.02 | 543.48 | 0.64% | 2264.83 | 2027.84 | -10.46% |
| Copper and products made of copper | 180.18 | 237.99 | 32.08% | 623.62 | 797.79 | 27.93% |
| Lead and products made of Lead | 73.84 | 93.95 | 27.24% | 299 | 345.83 | 15.66% |
| Nickel and products made of Nickel | 13.84 | 16.03 | 15.81% | 56.13 | 54.96 | -2.09% |
| Other Non Ferrous Metals and their products | 71.2 | 93.5 | 31.32% | 271.03 | 351.72 | 29.77% |
| Tin and products made of Tin | 2.17 | 3.51 | 61.87% | 6.79 | 9.7 | 42.87% |
| Zinc and products made of zinc | 52.77 | 47.57 | -9.86% | 248.5 | 199.91 | -19.55% |
| Sub Total | 934.02 | 1036.03 | 11% | 3769.9 | 3787.76 | 0% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor | 142.87 | 183.13 | 28.18% | 575.85 | 745.33 | 29.43% |
| IC Engines and Parts | 315.7 | 379.35 | 20.16% | 1205.59 | 1417.04 | 17.54% |
| Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc | 650.06 | 803.78 | 23.65% | 2688.19 | 2954.88 | 9.92% |
| Machine Tools | 62.66 | 108.29 | 72.83% | 263.5 | 304.53 | 15.57% |
| Machinery for ATMs, Injecting Moulding machinery, valves, etc | 225.03 | 275.56 | 22.45% | 890.23 | 1027.77 | 15.45% |
| Nuclear Reactors, Industrial Boilers and Parts | 59.92 | 70.61 | 17.83% | 248 | 307.95 | 24.18% |
| Pumps of all types | 131.48 | 144.53 | 9.93% | 494.45 | 524.65 | 6.11% |
| Sub Total | 1587.72 | 1965.24 | 23.78% | 6365.8 | 7282.15 | 14.39% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Electric Machinery and Equipment | 1141.01 | 1435.36 | 25.8% | 4543.3 | 5234.67 | 15.22% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| AUTO COMPONENTS/PARTS | 702.764 | 791.398 | 12.61% | 2703.118 | 2880.412 | 6.56% |
| AUTO TYRES AND TUBES | 237.847 | 272.912 | 14.74% | 1014.605 | 1074.036 | 5.86% |
| Motor Vehicle/cars | 722.152 | 837.362 | 15.95% | 2833.126 | 3336.701 | 17.77% |
| Two and Three Wheelers | 262.128 | 346.443 | 32.17% | 1019.088 | 1215.047 | 19.23% |
| Sub Total | 1924.891 | 2248.116 | 16.79% | 7569.936 | 8506.196 | 12.37% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Aircrafts, Spacecrafts and Parts | 384.74 | 139.32 | -63.79% | 1833.94 | 521.4 | 35.52% |
| Ships, Boats and Floating Structures | 381.42 | 313.3 | -17.86% | 1726.28 | 1612.57 | 322.77% |
| Sub Total | 766.16 | 452.62 | -40.92% | 3560.22 | 2133.97 | -40.06% |
Source : DGCI&S
US$ Million
| Product panels | July-2024 | July-2025 | Growth | April-July 2024-25 | April-July 2025-26 | Growth |
|---|---|---|---|---|---|---|
| BICYCLE AND PARTS | 29.32 | 41.03 | 39.95% | 120.32 | 152.99 | 27.16% |
| Hand Tools, Cutting Tools and Implements made of Metals | 84.44 | 93.35 | 10.55% | 324.49 | 355.71 | 9.62% |
| OFFICE EQUIPMENTS | 23.24 | 35.97 | 54.8% | 89.25 | 124.98 | 40.03% |
| OTHER CONSTRUCTION MACHINERY | 245.43 | 282.6 | 15.15% | 993.16 | 1117.59 | 12.53% |
| PRIME MICA AND MICA PRODUCTS | 2.83 | 1.83 | -35.45% | 9.57 | 10.7 | 11.73% |
| Railway Transport and Parts | 25.27 | 36.44 | 44.18% | 102.87 | 138.27 | 34.41% |
| PROJECT GOODS | 0.41 | 0.21 | -49.53% | 0.67 | 0.42 | -37.7% |
| OTHR RUBBER PRODCT EXCPT FOOTW | 147.89 | 171.46 | 15.94% | 577.29 | 631.63 | 9.41% |
Source : DGCI&S
Reasons for Decline (As per April-July 2025-26):
Aluminium:
Zinc:
Nickel:
(US$ million)
| Product panels | Top 5 nations | April-July 2024-25 | April-July 2025-26 | Growth (%) |
|---|---|---|---|---|
| Iron and Steel and Products made of Iron and Steel | ||||
| U S A | 1058.33 | 1351.94 | 28% | |
| U ARAB EMTS | 397.8 | 451.51 | 14% | |
| ITALY | 534.13 | 446.67 | -16% | |
| BELGIUM | 218.85 | 298.27 | 36% | |
| NEPAL | 259.85 | 273.46 | 5% | |
| Non-Ferrous Metals and Products made of Non-Ferrous Metals | ||||
| U S A | 476.25 | 604.96 | 27% | |
| KOREA RP | 301.08 | 342.75 | 14% | |
| SAUDI ARAB | 222.84 | 318.52 | 43% | |
| CHINA P RP | 159.12 | 205.32 | 29% | |
| U ARAB EMTS | 143.99 | 151.65 | 5% | |
| Industrial Machinery | ||||
| U S A | 1340.09 | 1570.01 | 17% | |
| U ARAB EMTS | 283.62 | 398.02 | 40% | |
| GERMANY | 318.83 | 329.69 | 3% | |
| CHINA P RP | 302.71 | 294.5 | -3% | |
| THAILAND | 251.26 | 266.63 | 6% | |
| Electrical Machinery | ||||
| U S A | 897.8 | 1065.9 | 19% | |
| U K | 370.57 | 582.98 | 57% | |
| SINGAPORE | 475.71 | 512.56 | 8% | |
| GERMANY | 240.27 | 373.09 | 55% | |
| KOREA RP | 245.57 | 307.11 | 25% | |
| Automobiles | ||||
| U S A | 809.2 | 812.87 | 0% | |
| MEXICO | 710.13 | 615.05 | -13% | |
| SOUTH AFRICA | 455.65 | 559.75 | 23% | |
| SAUDI ARAB | 558.18 | 532.12 | -5% | |
| U ARAB EMTS | 323.11 | 426.79 | 32% | |
| Aircrafts and Spacecraft parts and products | ||||
| U S A | 145.82 | 153.53 | 5% | |
| FRANCE | 75.62 | 90.34 | 19% | |
| U K | 47.61 | 58.52 | 23% | |
| SINGAPORE | 16.12 | 33.82 | 110% | |
| GERMANY | 23.9 | 33.17 | 39% | |
| Ships Boats and Floating products and parts | ||||
| SINGAPORE | 469.82 | 690.33 | 47% | |
| U ARAB EMTS | 627.85 | 467.85 | -25% | |
| INDONESIA | 95.21 | 96.23 | 1% | |
| SRI LANKA DSR | 87.06 | 89.13 | 2% | |
| OMAN | 0.06 | 65.93 | 115900% | |
| Project Goods | ||||
| U S A | 0.06 | 0.1 | 52% | |
| U K | 0 | 0.06 | 15863% | |
| TANZANIA REP | 0.02 | 0.04 | 98% | |
| SAUDI ARAB | 0.01 | 0.04 | 251% | |
| FRANCE | 0.01 | 0.03 | 247% | |
| Other Rubber Product Except Footwear | ||||
| U S A | 133.16 | 147.39 | 11% | |
| GERMANY | 37.83 | 43.16 | 14% | |
| CHINA P RP | 22.34 | 26.09 | 17% | |
| U ARAB EMTS | 22.62 | 25.68 | 14% | |
| NETHERLAND | 19.54 | 19.71 | 1% | |
| Other engineering products | ||||
| U S A | 298.82 | 360.21 | 21% | |
| U ARAB EMTS | 90.87 | 113.91 | 25% | |
| U K | 99.79 | 110.19 | 10% | |
| SOUTH AFRICA | 46.82 | 68.93 | 47% | |
| GERMANY | 44.3 | 66.59 | 50% |
Source : DGCI&S
State wise engineering export performance
State wise engineering export performance- Data as on 2024-25
( Note: Current fiscal 2025-26 data not yet updated as per Niryat Portal)
The table below indicates the exports from top Indian states. It is evident from the table that almost 91.5% of India’s exports is contributed by the listed 12 states. Within this almost 50 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together.
(US$ million)
| Top States | Cumulative Export April-March 2025-26 | Share % | Remark |
|---|---|---|---|
| Maharashtra | 22546.4 | 19.65% | 91.5% share covered by top 12 states |
| Tamil Nadu | 18108.6 | 15.78% | |
| Gujarat | 16590.5 | 14.46% | |
| Telangana | 7536.2 | 6.57% | |
| Karnataka | 7277.3 | 6.34% | |
| Haryana | 6764.5 | 5.9% | |
| Odisha | 5910.1 | 5.15% | |
| Delhi | 4684.5 | 4.08% | |
| Uttar Pradesh | 4348.7 | 3.79% | |
| Andhra Pradesh | 4319.4 | 3.77% | |
| West Bengal | 3523.7 | 3.07% | |
| Rajasthan | 3375.7 | 2.94% | |
| Punjab | 2661.3 | 2.32% | |
| Madhya Pradesh | 2013.1 | 1.75% | |
| Daman & Diu And Dadra & Nagar Haveli | 1242 | 1.08% | |
| Kerala | 840.9 | 0.73% | |
| Jharkhand | 807.2 | 0.7% | |
| Chhattisgarh | 754.6 | 0.66% | |
| Uttarakhand | 549.2 | 0.48% | |
| Goa | 405.8 | 0.35% | |
| Puducherry | 180.2 | 0.16% | |
| Himachal Pradesh | 124.8 | 0.11% | |
| Bihar | 61.1 | 0.05% | |
| Chandigarh | 51.7 | 0.05% | |
| Assam | 19.4 | 0.02% | |
| Tripura | 10.9 | 0.01% | |
| Jammu & Kashmir | 10.2 | 0.01% | |
| Arunachal Pradesh | 1.8 | 0% | |
| Sikkim | 1 | 0% | |
| Manipur | 0.8 | 0% | |
| Lakshadweep | 0.1 | 0% | |
| Andaman & Nicobar | 0.1 | 0% | |
| Meghalaya | 0.1 | 0% | |
| Nagaland | 0 | 0% | |
| Ladakh | 0 | 0% | |
| Mizoram | 0 | 0% |
Source : DGCI&S
In terms of region, western region which includes industrial states like Maharashtra and Gujarat is the front runner in terms of exports with 34.1 percent share. Tamil Nadu from the Southern Region has retained its export performance and it ranked second after Maharashtra, while Gujarat and Telengana ranked third and fourth during April-March 2024-25.
Note : DGCI&S state wise data available till Jul-2025
Value in US$ million
| Region | Jul-2024($Mn) | Jul-2025($Mn) | Growth % | Apr-Jul 2024-25($Mn) | Apr-Jul 2025-26 ($Mn) | Growth % |
|---|---|---|---|---|---|---|
| WESTERN REGION | 4070.4 | 4143.4 | 1.79% | 41415.4 | 42797.8 | 3.34% |
| SOUTHERN REGION | 3884.2 | 3310.4 | -14.77% | 33012.2 | 38262.7 | 15.9% |
| EASTERN REGION | 1096.1 | 989.8 | -9.7% | 12236.7 | 11089.8 | -9.37% |
| NORTHERN REGION | 2235 | 432.9 | -80.63% | 22650.9 | 22571.6 | -0.35% |
| Grand Total | 11285.7 | 8876.5 | -21.35% | 109315.2 | 114721.9 | 4.95% |
Engineering forms a considerable part of the broader manufacturing sector and the share of engineering production in overall manufacturing output is quite significant. As exports generally come from what is produced within a country, some correlation between manufacturing production growth and engineering export growth should exist. We briefly look at the trend in manufacturing growth as also engineering export growth to see if they move in tandem. It may be mentioned that manufacturing has 77.63% weightage in India’s industrial production.
Engineering export growth and manufacturing output growth moved in the same direction in as many as nine out of twelve months in each of the fiscal years 2019-20 and 2020-21. During fiscal 2021-22, engineering export growth and manufacturing growth moved in the same direction in seven out of twelve monthswhile in each of fiscal 2022-23 and 2023-24, as many as10 out of 12 months saw engineering exports and manufacturing output moved in the same direction. In 2024-25, both moved in the same direction in eight out of 12 months.
The first two month of fiscal 2025-26 saw engineering export growth and manufacturing output growth moved in the opposite direction. In April, engineering export growth surged to double digit and manufacturing growth decelerated, while in May engineering export declined and manufacturing output growth inched up over the month. In June 2025 however, both moved on the same direction witnessing improvement in growth.
The link between these two may not be established in one or two months, but a positive correlation may be seen if medium to long term trend is considered.
| Months/ Year | Engg. Export Growth (%) | Manufacturing Growth (%) |
|---|---|---|
| April 2020 | -63.05 | -66.6 |
| May 2020 | -22.17 | -37.8 |
| June 2020 | -5.18 | -17.0 |
| July 2020 | 10.56 | -11.4 |
| August 2020 | -7.01 | -7.6 |
| September 2020 | 4.09 | 0.4 |
| October 2020 | -5.01 | 4.5 |
| November 2020 | -8.37 | -1.6 |
| December 2020 | -0.93 | 2.7 |
| January 2021 | 16.66 | -0.9 |
| February 2021 | -4.94 | -3.4 |
| March 2021 | 67.75 | 28.3 |
| April 2021 | 236.85 | 196.0 |
| May 2021 | 50.21 | 32.1 |
| June 2021 | 51.00 | 13.2 |
| July 2021 | 42.57 | 10.5 |
| August 2021 | 58.63 | 11.1 |
| September 2021 | 35.11 | 4.3 |
| October 2021 | 51.76 | 3.3 |
| November 2021 | 37.28 | 0.3 |
| December 2021 | 47.42 | 0.6 |
| January 2022 | 25.63 | 1.9 |
| February 2022 | 35.49 | 0.2 |
| March 2022 | 19.72 | 1.4 |
| April 2022 | 18.30 | 5.6 |
| May 2022 | 11.45 | 20.6 |
| June 2022 | 3.01 | 13.0 |
| July 2022 | -0.03 | 3.2 |
| August 2022 | -12.64 | -0.5 |
| September 2022 | -11.39 | 2.0 |
| October 2022 | -19.68 | -5.8 |
| November 2022 | 0.09 | 6.7 |
| December 2022 | -11.60 | 3.6 |
| January 2023 | -9.76 | 4.0 |
| February 2023 | -9.73 | 5.6 |
| March 2023 | -7.49 | 0.5 |
| April 2023 | -7.27 | 5.5 |
| May 2023 | -4.13 | 6.3 |
| June 2023 | -10.94 | 3.5 |
| July 2023 | -6.65 | 5.0 |
| August 2023 | 7.83 | 9.3 |
| September 2023 | 6.81 | 4.5 |
| October 2023 | 7.20 | N A |
| November 2023 | -3.48 | 1.2 |
| December 2023 | 9.82 | 4.5 |
| January 2024 | 4.21 | 3.6 |
| February 2024 | 15.9 | 5.0 |
| March 2024 | 10.66 | N A |
| April 2024 | -4.49 | 3.9 |
| May 2024 | 7.41 | 4.6 |
| June 2024 | 10.27 | N A |
| July 2024 | 3.66 | 4.6 |
| August 2024 | 4.26 | 1.0 |
| September 2024 | 9.44 | 3.9 |
| October 2024 | 38.39 | 4.1 |
| November 2024 | 13.72 | 5.5 |
| December 2024 | 8.33 | 3.4 |
| January 2025 | 7.46 | 5.5 |
| February 2025 | -8.64 | 2.9 |
| April 2025 | -3.92 | 3.0 |
| May 2025 | -0.80 | 2.6 |
| June 2025 | 1.28 | 2.9 |
Source :Department of Commerce and CSO
How did the exchange rate fare during July 2025 and what was the recent trend in Re-Dollar movement? In order to get a clearer picture of the recent Re-Dollar trend, not only we took the exchange rate of July 2025, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2023-24, 2024-25 and fiscal 2025-26 as per the latest data published, as mere one-month figure does not reflect any trend. The following two tables clearly depicts the short-term trend.
(Monthly Average Rate of FBIL has been considered)
Source : FBIL
(As per latest data released by FBIL)
| Monthly Average Exchange Rate (1 USD to INR) | Year-on-Year Change (%) | Direction | Month-on-Month Change (%) | Direction | ||
|---|---|---|---|---|---|---|
| Month | 2024-25 | 2025-26 | ||||
| April | 83.41 | 85.56 | 2.58 | Depreciation | -1.25 | Appreciation |
| May | 83.39 | 85.19 | 2.16 | Depreciation | -0.43 | Appreciation |
| June | 83.47 | 85.90 | 2.91 | Depreciation | 0.83 | Depreciation |
| July | 83.59 | 86.11 | 3.01 | Depreciation | 0.24 | Depreciation |
Rupee continued to depreciate both on a monthly as well as yearly basis in July 2025: INR depreciated vis-à-vis the US Dollar by 0.24 percent in July 2025 over the previous month and a much higher 3.01 percent on a year-on-year basis. Rupee dropped to below 87 per US Dollar by the end of July 2025 and closed the month at 87.55 per US Dollar. Uncertainty over an India-U.S. trade deal after U.S. President Donald Trump hinted at tariff hike wighed on rupee. Month-end dollar demand from importers and sustained foreign fund outflows also weighed on the Indian local unit.
Outlook: Uncertainty on trade due to imposition of reciprocal tariff by USA clouded the global socio-economic scenario and hence the outlook for rupee. A trend may be established once tariff stability is seen.
(As per latest data released by FBIL)
| Monthly Average Exchange Rate (1 USD to INR) | Year-on-Year Change (%) | Direction | Month-on-Month Change (%) | Direction | ||
|---|---|---|---|---|---|---|
| Month | 2023-24 | 2024-25 | ||||
| April | 82.02 | 83.41 | 1.69 | Depreciation | 0.49 | Depreciation |
| May | 82.34 | 83.39 | 1.28 | Depreciation | -0.02 | Appreciation |
| June | 82.23 | 83.47 | 1.51 | Depreciation | 0.10 | Depreciation |
| July | 82.15 | 83.59 | 1.75 | Depreciation | 0.14 | Depreciation |
| August | 82.79 | 83.89 | 1.33 | Depreciation | 0.36 | Depreciation |
| September | 83.05 | 83.81 | 0.92 | Depreciation | -0.10 | Depreciation |
| October | 83.24 | 84.02 | 0.94 | Depreciation | 0.25 | Depreciation |
| November | 83.30 | 84.36 | 1.27 | Depreciation | 0.40 | Depreciation |
| December | 83.28 | 84.99 | 2.05 | Depreciation | 0.75 | Depreciation |
| January | 83.14 | 86.27 | 3.76 | Depreciation | 1.51 | Depreciation |
| February | 82.96 | 87.05 | 4.93 | Depreciation | 0.90 | Depreciation |
| March | 83.00 | 86.64 | 4.39 | Depreciation | -0.47 | Appreciation |
Source : FBIL, EEPC Research
We now present the trend in two-way yearly trade for the engineering sector for the 2025-26 depicted in the table below:
(US$ million)
| Trade Flow | April | May | June | July |
|---|---|---|---|---|
| Engineering Export | 9.5 | 9.9 | 9.5 | 10.4 |
| Engineering Import | 13.4 | 13.8 | 11.5 | 14.0 |
| Trade Balance | -3.9 | -3.9 | -2.0 | -3.6 |
Source : DGCI&S
The Indian engineering exports recorded a growth for the second consecutive month after conceding a decline in May 2025. The decline was mainly due to decline in exports to WANA region including UAE and Saudi Arabia due to increasing logistics and shipping costs primarily after the geopolitical tensions in the region. There is also significant decline in exports to Turkey stemming out of the geopolitical tensions with India. In terms of products major decline was witnessed in metals including aluminium, zinc nickel.
The landscape of international trade in July 2025 is marked by tensions from escalating US tariff, regional diversgence and heightened policy uncertainty. As per WTO global merchandise trade is projected to decline by 0.2% in 2025 with a possible deeper fall of up to 1.5% if trade tensions or new tariff measures intensify. The world is witnessing realignment of supply chains, and growing inward-looking trade policy in major economies threatening established production networkd. India also faces a huge tariff imposition from the US which makes our future quite uncertain given that US is our major export partner. In this scenario we need to diversify our markets and products to survive and increase our global market share. The support of Government of India both in terms of foreign policy and access to credit would be of great importance at this juncture.
Monthly Trend
Highlights
Product Panels
Impact of Exchange Rate
Conclude