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January 2026
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Engineering exports recorded more than 10% growth in January 2026 after registering marginal growth last month

Engineering exports continued its growth run for the third straight month to August 2025 but with a moderated growth of 4.91 percent as against a high double digit growth of 13.86 percent in July 2025.
Engineering exports in August 2025 was recorded at USD 9.9 billion as against USD 9.4 billion in the same month last year, registering 4.91 percent growth.
On a month-on-month basis, engineering exports declined by around 5 percent as the previous month saw engineering shipment crossed USD 10 billion to reach USD 10.4 billion.
On a cumulative basis, engineering exports recorded 5.86 percent year-on-year growth during the first five months of fiscal 2025-26 as it went up to USD 49.24 billion in Apr – Aug 2025-26 from USD 46.52 billion during the same period last fiscal.
The share of engineering in total merchandise exports rose to 28.2 percent in August 2025 from 28 percent in July 2025. The share was recorded at 26.74% on a cumulative basis during April – August 2025-26.
In August 2025, 27 out of 34 engineering panels witnessed positive year-on-year growth. While 7 engineering panels including mainly Nickel and product, Electrical Machinery and Equipment,  Aircrafts and Spacecrafts, Ship and Boats, Medical and Scientific Instruments and Hand Tools and Cutting Tools, etc. witnessed decline in exports during August 2025 vis-à-vis August 2024.
On a cumulative basis, 28 out of 34 engineering panels recorded positive growth and remaining 6 engineering panels including Non-ferrous sectors including Aluminium products, Zinc products and Nickel, Aircraft and Spacecrafts and Ships, boats and floating products, etc. recorded negative growth during April-August 2025-26.
Region wise, North America maintained its spot as the number one export destination with a share of 21% followed by EU (18%) and WANA (14%) in April-August 2025.
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January-2026 engineering exports hit peak growth for fiscal 2025-2026

Engineering exports continued its growth run for the third straight month to August 2025 but with a moderated growth of 4.91 percent as against a high double digit growth of 13.86 percent in July 2025. Engineering exports in August 2025 was recorded at USD 9.9 billion as against USD 9.4 billion in the same month last year. On a month-on-month basis, engineering exports declined by around 5 percent as the previous month saw engineering shipment crossed USD 10 billion to reach USD 10.4 billion. This over the month decline in export may be considered as the early sign of stress given the tariff escalation imposed by the USA. On a cumulative basis, engineering exports recorded 5.86 percent year-on-year growth during the first five months of fiscal 2025-26 as it went up to USD 49.24 billion in Apr – Aug 2025-26 from USD 46.52 billion during the same period last fiscal. The share of engineering in total merchandise exports rose to 28.2 percent in August 2025 from 28 percent in July 2025. The share was recorded at 26.74% on a cumulative basis during April – August 2025-26. This growth in August 2025 was basically attributed to growth in shipment of Automobile and Auto component, Industrial machinery, and some basic metals namely Iron and steel, Aluminium and Copper along with their products. Region-wise analysis revealed that top export destinations for India’s engineering exports namely North America and EU recorded noticeable growth on both monthly as well as on cumulative basis while WANA, ASEAN and CIS conceded decline in exports in August 2025 among the prominent regions. Exports to Saudi Arabia and Singapore declined in August 2025 among the major export destination countries.

Trade Flow Export figures(in $ billion) Growth (%)
Aug-2025 Aug-2026 Apr-Aug 2024-25 Apr-Aug 2025-26 Aug-2026 over Aug-2025 Apr-Aug 2024-25 over Apr-Aug 2025-26
Engineering exports 9.42 10.40 96.76 101.13 10.4% 4.52%
Overall merchandise exports 36.33 36.55 358.74 366.62 0.61% 2.20%
Share of engineering (%) 25.9% 28.5% 27.0% 27.6% --- ---
Service Exports 34.75 43.90 320.28 354.13 26.33% 10.57%

Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India.

Engineering Exports: Monthly Trend

The monthly engineering export figures for 2025-26 vis-à-vis 2024-25 are shown below as per the latest DGCI&S estimates:

Table 1: Engineering Exports: Monthly Trend in 2025-26

US$ million

Month 2024-25 2025-26 Growth (%)
April 8557.11 9513.72 11.18
May 9974.13 9889.09 -0.85
June 9386.21 9506.66 1.28
April-June 27917.46 28909.47 3.55
July 9162.17 10433.12 13.87
August 9437.14 9900.7 4.91
September 9826.24 10113.15 2.92
July-September 28425.55 30446.97 7.11
October 11253.08 9372.67 -16.71
November 8897.84 11012.20 23.76
December 10843.35 10981.94 1.28
October-December 30994.27 31369.25 1.21
January 9424.17 10401.80 10.37
April- January 96761.45 101131.86 4.52

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-January 2025-26

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during August 2025 over August 2024 as well as in cumulative terms during April-August 2025-26 vis-à-vis April-August 2024-25. The data clearly shows that top 25 countries contribute 75 % of total engineering exports.

Table 2: Engineering exports country wise

(US$ million)

Countries Aug-2025 Aug-2026 Growth (%) April-January 2024-25 April-January 2025-26 Growth (%)
U S A 1622.85 1513.23 -6.75% 15613.93 16195.43 3.72%
U ARAB EMTS 611.79 871.48 42.45% 6874.46 6628.23 -3.58%
SAUDI ARAB 389.16 518.58 33.25% 4861.23 4189.04 -13.83%
GERMANY 360.31 443.49 23.09% 3500.55 4081.21 16.59%
U K 347.66 408.91 17.62% 3258.99 3892.03 19.42%
SINGAPORE 169.72 363.8 114.35% 3936.04 3669.11 -6.78%
CHINA P RP 240.69 304.85 26.66% 2243.94 2637.18 17.52%
JAPAN 230.88 285.85 23.81% 1987.18 2215.39 11.48%
ITALY 211.02 284.86 34.99% 2490.38 2917.5 17.15%
KOREA RP 189.46 248.33 31.08% 2110.02 2476.77 17.38%
SOUTH AFRICA 245.96 246.67 0.29% 2108.17 2400.95 13.89%
MEXICO 272.58 244.68 -10.24% 2945.79 2764.77 -6.14%
NEPAL 185.61 208.15 12.15% 1854.49 1961.81 5.79%
VIETNAM SOC REP 104.52 202.83 94.07% 1197.07 1621.26 35.44%
BRAZIL 170.06 187.62 10.33% 1845.75 2067.09 11.99%
TURKEY 215.65 184.26 -14.56% 2608.54 1609.37 -38.3%
NETHERLAND 163.6 183.75 12.32% 1580.9 1871.4 18.38%
FRANCE 202.11 177.55 -12.15% 2072.88 1917.59 -7.49%
SRI LANKA DSR 89.88 163.23 81.61% 951.99 1438.32 51.09%
THAILAND 170.23 153.5 -9.83% 1655.05 1807.88 9.23%
SPAIN 105.67 152.05 43.89% 1176.2 1475.42 25.44%
BANGLADESH PR 189.77 150.56 -20.66% 1771.23 1623.44 -8.34%
INDONESIA 130.91 149.08 13.88% 1685.81 1305.18 -22.58%
AUSTRALIA 100.44 124.34 23.79% 1011.51 1280.93 26.64%
CANADA 101.52 121.71 19.88% 1016.12 1112.25 9.46%
Total engineering exports to top 25 countries 6822.05 7893.36 15.7% 72358.22 75159.55 3.87%
Total engineering exports 9424.17 10401.8 10.37% 96761.45 101131.86 4.52%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

The following table depicts region wise India’s engineering exports for April-August 2025 as compared to April-August 2024

Note: Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.

Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-January 2024-2025

(US$ million)

Regions Aug-2025 Aug-2026 Growth (%) April-January 2024-25 April-January 2025-26 Growth (%)
NORTH AMERICA 1996.95 1879.61 -5.88% 19575.84 20072.46 2.54%
WANA 1473.28 1857.16 26.06% 16273.86 15543.97 -4.49%
EUROPEAN UNION 1585.12 1761.09 11.1% 16579.48 18101.59 9.18%
ASEAN 735.99 1075.4 46.12% 10521.71 10664.28 1.35%
N E ASIA 735.63 964.33 31.09% 7153.57 8329.22 16.43%
SSA( Sub Saharan Africa) 938.68 825.67 -12.04% 7203.16 8192.35 13.73%
OTHER EUROPE 594.96 640.85 7.71% 6298.69 5909.68 -6.18%
SOUTH ASIA 542.13 568.73 4.91% 5350.19 5553.07 3.79%
LATIN AMERICA 549.51 538.17 -2.06% 5120.48 5793.88 13.15%
CIS 153.31 141.15 -7.93% 1499.22 1420.96 -5.22%
OCEANIA 107.82 137.13 27.19% 1134.12 1409.79 24.31%
OTHERS 10.79 2.22 -79.45% 51.08 130.32 155.13%

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.

PRODUCT PANEL WISE ENGINEERING EXPORTS

In this section we look at the Engineering Panel wise exports for the month of August 2025 vis-à-vis August 2024 as well as the cumulative exports for April-August 2025-26 vis-à-vis April-August 2024-25. These are indicated in the tables below.

Reasons for Decline (As per April-August 2025-26):

Aluminium

  • While cumulative aluminium exports have remained negative, it recorded slight growth in August 2025, first time in the current fiscal
  • Massive decline noted in Turkey (80%) mainly due to ongoing geo-political tensions. Decline was also noted in Mexico, Netherlands, Bangladesh, Canada and Spain
  • Increase in domestic demand is also a reason behind declining exports

Zinc

  • As per the London Metal Exchange the global zinc market is facing significant downturn due to international trade tensions and weak macroeconomic conditions

Nickel

  • The decline in India’s Nickel exports is mainly due to rising domestic demand especially in the EV and renewable sector

 

Table 4a. Trend in exports of iron and steel and its products

(US$ million)

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
IRON AND STEEL 745.68 912.01 22.31% 7752.22 8570.84 10.56%
PRODUCTS OF IRON AND STEEL 899.81 908.6 0.98% 8304.03 8711.52 4.91%
Sub Total 1645.49 1820.61 11% 16056.25 17282.36 8%

Source : DGCI&S

Table 4b. Trend in exports of Non-Ferrous Metals and Products

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
Aluminium and products made of Aluminium 575.45 666.21 15.77% 5705.99 5767.44 1.08%
Copper and products made of copper 227.91 346.92 52.22% 1942.98 2887.33 48.6%
Lead and products made of Lead 79.75 118.9 49.09% 743.25 1063.19 43.05%
Nickel and products made of Nickel 18.34 14.66 -20.06% 152.9 150.07 -1.85%
Other Non Ferrous Metals and their products 76.04 92.78 22.01% 713.42 856.39 20.04%
Tin and products made of Tin 1.39 5.97 328.79% 18.54 34.24 84.65%
Zinc and products made of zinc 60.22 82.46 36.94% 618 685.44 10.91%
Sub Total 1039.1 1327.91 28% 9895.09 11444.1 16%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor 174.98 187.5 7.15% 1580.22 1845.98 16.82%
IC Engines and Parts 324.85 315.27 -2.95% 3141.2 3444.01 9.64%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 697.21 729.54 4.64% 6772.49 7487.14 10.55%
Machine Tools 64.58 65.86 1.98% 652.43 755.35 15.78%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 251.81 258.78 2.77% 2316.33 2578.62 11.32%
Nuclear Reactors, Industrial Boilers and Parts 65.42 71.09 8.68% 680.01 842.27 23.86%
Pumps of all types 121.43 135.6 11.67% 1283.08 1370.86 6.84%
Sub Total 1700.28 1763.64 3.73% 16425.75 18324.24 11.56%

Source : DGCI&S

Table 4d. Trend in exports of Electrical Machinery and Equipment

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
Electric Machinery and Equipment 1176.86 1275.02 8.34% 11768.87 12726.06 8.13%

Source : DGCI&S

Table 4e. Trend in exports of Auto and auto parts

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
AUTO COMPONENTS/PARTS 660.764 686.239 3.86% 6745.366 7119.268 5.54%
AUTO TYRES AND TUBES 254.737 264.906 3.99% 2544.945 2653.88 4.28%
Motor Vehicle/cars 686.995 876.887 27.64% 7375.945 9089.167 23.23%
Two and Three Wheelers 255.36 329.918 29.2% 2637.235 3240.845 22.89%
Sub Total 1857.857 2157.95 16.15% 19303.49 22103.161 14.5%

Source : DGCI&S

Table 4f. Trend in exports of aircraft, spacecraft and parts and ships, boats and floating structures

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
Aircrafts, Spacecrafts and Parts 617.65 128.36 -79.22% 6389.13 1353.27 119.1%
Ships, Boats and Floating Structures 95.4 453.1 374.96% 3819.11 3396.85 3460.72%
Sub Total 713.05 581.47 -18.45% 10208.24 4750.11 -53.47%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels January-2025 January-2026 Growth April-January 2024-25 April-January 2025-26 Growth
BICYCLE AND PARTS 37.2 40.2 8.06% 328 389.84 18.86%
Cranes, Lifts and Winches 79.95 81.51 1.95% 894.04 907 1.45%
Hand Tools, Cutting Tools and Implements made of Metals 92.68 80.71 -12.92% 860.73 851.45 -1.08%
Medical and Scientific Instruments 226.93 230.13 1.41% 2308.52 2355.95 2.05%
OFFICE EQUIPMENTS 17.71 27.69 56.36% 236.33 328.86 39.15%
OTHER CONSTRUCTION MACHINERY 234.19 379.31 61.97% 2468.11 2981.06 20.78%
OTHER MISC. ITEMS 423.1 455.75 7.72% 4202.52 4692.48 11.66%
PRIME MICA AND MICA PRODUCTS 2.97 1.85 -37.64% 25.93 25.18 -2.91%
Railway Transport and Parts 24.3 29.37 20.86% 306.77 412.39 34.43%
PROJECT GOODS 0.18 0.16 -13.1% 2.14 1.63 -23.93%
OTHR RUBBER PRODCT EXCPT FOOTW 152.31 148.53 -2.48% 1470.68 1555.98 5.8%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

We now analyze the performance of some of the important products for the fiscal April-August 2025-26 vis-à-vis April-August 2024-25. We have taken the major panels and computed the top importers to get an idea of the current trade pattern. 

  • In April-August 2025, Italy, USA and Belgium ranked as the top three importers of Indian Iron and Steel, while the USA, UAE and Germany lead in import of products of Iron & Steel.
  • The USA stood out as the primary importer of Indian 'Industrial machinery,' making up 21% of India's global exports in this category, followed by UAE and Germany with 6% ad 5% shares, respectively during April-August 2025.
  • South Africa, Saudi Arabia, Mexico, Japan and UAE were top importers of India's Automobiles during April-August 2025 in India’s global exports respectively over the same period previous fiscal. 
  • USA, South Korea, Saudi Arabia, China and Vietnam were the top importers of India's Non-ferrous metals and products during April-August 2025.
  • USA, UK, Singapore and Germany were the top importers of Indian Electrical Machinery & Components during the same period with  21%, 10%, 10% and 7% shares respectively.
  • USA, France,UK, Germany and Singapore were the top importers of India's Aircrafts and Spacecraft during April-August 2025, making up to 71% of India’s total export of Aircrafts and Spacecraft
  • Singapore, UAE and Indonesia became the largest importer of ships, boats and floating structures followed by Sri Lanka and Oman, making up to 88% of India’s total export of ships, boats and floating structures.
  • For the auto components’ product group, USA remained the top importer in April-August 2025 followed by Germany, Brazil, UAE and Bangladesh, making up to 41% of India’s total export under this category.
Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-January 2024-25 April-January 2025-26 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 2979.65 3102.01 4%
U ARAB EMTS 1259.89 1294.31 3%
ITALY 1124.86 1293.49 15%
U K 737.05 706.9 -4%
NEPAL 741.75 680.39 -8%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
U S A 1225.31 1466.45 20%
SAUDI ARAB 637.06 1061.5 67%
KOREA RP 806.93 1006.69 25%
CHINA P RP 511.31 895.58 75%
VIETNAM SOC REP 348.13 595.79 71%
Industrial Machinery
U S A 3425.83 3601.86 5%
U ARAB EMTS 804.85 1101.51 37%
GERMANY 728.29 816.23 12%
CHINA P RP 717.39 780.15 9%
SAUDI ARAB 532.11 649.06 22%
Electrical Machinery
U S A 2224.24 2483.74 12%
U K 923.95 1304.31 41%
SINGAPORE 1297.1 1259.85 -3%
GERMANY 800.77 883.46 10%
KOREA RP 528.52 685.73 30%
Automobiles
U S A 1990.54 1880.06 -6%
SOUTH AFRICA 1354.79 1599.4 18%
MEXICO 1495.59 1522.68 2%
SAUDI ARAB 1359.82 1422.55 5%
U ARAB EMTS 931.32 1155.52 24%
Aircrafts and Spacecraft parts and products
U S A 375.86 413.85 10%
FRANCE 672.12 243.25 -64%
U K 125.4 153.43 22%
GERMANY 63.34 79.61 26%
RUSSIA 21.98 59.68 171%
Ships Boats and Floating products and parts
U ARAB EMTS 882.17 1215.6 38%
SINGAPORE 1695.18 1206.86 -29%
SRI LANKA DSR 233.59 316.46 35%
INDONESIA 306.38 125.12 -59%
OMAN 9.96 87.78 782%
Project Goods
U S A 0.35 0.4 13%
FRANCE 0.03 0.27 781%
U K 0.01 0.16 2342%
NIGERIA 0.03 0.1 287%
OMAN 0.01 0.1 1357%
Other Rubber Product Except Footwear
U S A 336.2 322.37 -4%
GERMANY 93.21 111.67 20%
U ARAB EMTS 63.93 66.68 4%
CHINA P RP 55.05 62.63 14%
NETHERLAND 54.75 53.27 -3%
Other engineering products
U S A 2804.49 2919.02 4%
U ARAB EMTS 540.27 686.11 27%
GERMANY 558.86 666.62 19%
U K 556.46 615.81 11%
SAUDI ARAB 346.45 339.41 -2%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

State wise engineering export performance

State wise engineering export performance- Data as on 2024-25

( Note: Current fiscal 2025-26 data not yet updated in 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.

  • Top 12 states constitute over 91.5 % of India’s engineering Exports. Once again, Karnataka maintained its 5th position, Telengana retained its 4th position, Odisha coming down to 7th position, West Bengal coming down to 11th position, while Rajasthan moving up to 12th position and Haryana remarkably moved up to 6th position during the fiscal April-March 2024-25 compared to the same period last fiscal.( as per estimates of Niryat Portal)
  • Major negative growth witnessed in states like Maharashtra ( decline by 1.9%), Odisha, ( decline by 17.1%), Andhra Pradesh (decline by 11.6%) and Rajasthan (decline by 0.9%) during April-March 2024-25 compared to the same period last fiscal.
  • Maharashtra being the highest state in terms of Engineering Goods exports ( constituting a share of 19.7%) is leading by US$ 4.44 billion from Tamil Nadu(Second Highest State) for the period of April-March 2024-25

 

Table 6: Top state wise engineering export performance - April-November 2025-26

(US$ million)

Top States Cumulative Export April-November 2025-26 Share % Remark
Maharashtra 25102.4 27.42% 91.5% share covered by top 12 states
Tamil Nadu 18051.5 19.72%
Gujarat 13650.1 14.91%
Delhi 5215.8 5.7%
Karnataka 5122.8 5.6%
Haryana 3854.5 4.21%
Odisha 3732.7 4.08%
West Bengal 3415.9 3.73%
Andhra Pradesh 3247 3.55%
Uttar Pradesh 2537.5 2.77%
Punjab 1595.1 1.74%
Rajasthan 1231.6 1.35%
Telangana 1113 1.22%
Bihar 1002.8 1.1%
Kerala 939.9 1.03%
Goa 717.7 0.78%
Madhya Pradesh 589.7 0.64%
Uttarakhand 371.8 0.41%
Assam 38.6 0.04%
Puducherry 13.1 0.01%
Himachal Pradesh 3 0%
Others 2.1 0%
Chhattisgarh 0 0%
Jammu & Kashmir 0 0%
Meghalaya 0 0%

Source : DGCI&S

Region wise engineering exports

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: The total engineering exports given in the above table is taken from NIRYAT as per the latest available data and may not tally with the total engineering exports as given by DGCI&S

Note : DGCI&S state wise data available till Aug-2026

Table 7: Region wise exports from India till Aug-2026

Value in US$ million

Region Apr-Aug 2024-25($Mn) Apr-Aug 2025-26 ($Mn) Growth %
WESTERN REGION 35553.1 40059.9 12.68%
NORTHERN REGION 14671.1 14809.3 0.94%
Others 0 2.1 0%
SOUTHERN REGION 30453.1 28487.3 -6.46%
EASTERN REGION 7557 8190 8.38%
Grand Total 88234.3 91548.6 3.76%

CORRELATION BETWEEN MANUFACTURING PRODUCTION AND ENGINEERING EXPORTS

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 and July 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. 

Table 8: Engineering exports growth vis-à-vis manufacturing growth from April 2020
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
July 2025 13.86 5.4
August 2025 4.90 3.8
September 2025 2.93 4.8
October 2025 -16.72 1.8
November 2025 23.79 8.0

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during August 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 August 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.

Fig 3: Trend of Rupee vis-a-vis US dollar from April 2020

(Monthly Average Rate of FBIL has been considered)

Source : FBIL

Table 9: USD-INR monthly average exchange rate in 2025-26 vis-à-vis 2024-25

(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
August 83.90 87.52 4.31 Depreciation 1.64 Depreciation
September 83.81 88.32 5.38 Depreciation 0.91 Depreciation
October 84.03 88.42 5.22 Depreciation 0.11 Depreciation
November 84.36 88.83 5.30 Depreciation 0.46 Depreciation
December 84.99 90.09 6.00 Depreciation 1.42 Depreciation
January 86.26 90.80 5.25 Depreciation 0.79 Depreciation

Rupee continued to depreciate both on a monthly as well as yearly basis for the third straight month in August 2025 as INR hit its lowest: INR depreciated vis-à-vis the US Dollar by 1.64 percent in July 2025 over the previous month and a much higher 4.31 percent on a year-on-year basis. Rupee dropped to below 87 per US Dollar in July that continued in August 2025 and it closed the month at 87.85 per US Dollar (FBIL data). Uncertainty over an India-U.S. trade deal after U.S. President Donald Trump hinted at tariff hike continued to wigh 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.

Table 10: USD-INR monthly average exchange rate in 2024-25 vis-à-vis 2023-24

(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

TREND IN ENGINEERING TRADE BALANCE

We now present the trend in two-way yearly trade for the engineering sector for the 2025-26 depicted in the table below:

Table 11: Monthly Trend in Engineering Trade Balance for the current FY

(US$ million)

Trade Flow April May June July August September October November December January
Engineering Export 9.5 9.9 9.5 10.4 9.9 10.1 9.4 11.0 11.0 10.4
Engineering Import 13.4 13.8 11.5 14.0 13.2 13.4 13.8 13.5 14.0 14.0
Trade Balance -3.9 -3.9 -2.0 -3.6 -3.3 -3.3 -4.4 -2.5 -3.0 -3.6

Source : DGCI&S

TO CONCLUDE...

India’s engineering exports continued its growth journey in the month of August recording a growth of 4.9% over last year. This growth comes at a time when our exporters are facing significant global challenges especially the threat of reciprocal and section 232 tariffs from the US and increasing logistics and shipping costs due to growing geo-political tensions. Therefore it is a significant achievement for the exporting community. In this difficult times, the FTA signed with UK will become a major benefit to the industry as it will further pave our presence in the UK market. However, the FTA doesnot address the CBAM concerns which may act as a significant barrier. As India negotiates another FTA with EU, we hope it would address the non-tariff barrier concerns such as CBAM to make the FTAs truly effective. Also, we urge the government to provide us support for better marketing of Indian products abroad as diversification of products and destinations is the key. The support of the government will also be crucial to address the issues of export credit, rising raw material prices and rising logistics cost. The industry strongly believes that resolution to the above issues would make India truly competitive in the global market.