Engineering exports continued its growth run for the fourth straight month to September 2025 but with a moderated growth of 2.93 percent as against 4.90 percent in August 2025 and a high double digit growth of 13.86 percent in July 2025. Engineering exports in September 2025 was recorded at USD 10.11 billion as against USD 9.83 billion in the same month last year. Engineering exports recorded increase on a month-on-month basis too as it crossed USD 10 billion for the second month in this fiscal after July 2025 but higher base of September 2024 resulted in a slower growth rate on a year-on-year basis. It is definitely a good sign that despite of 9.4 percent decline in engineering exports to USA due to the tariff escalation by the USA from end of August 2025, engineering exports from India is still growing. On a cumulative basis, engineering exports recorded 5.35 percent year-on-year growth during the first half of fiscal 2025-26 as it went up to USD 59.36 billion in Apr – Sep 2025-26 from USD 56.34 billion during the same period last fiscal. The share of engineering in total merchandise exports was recorded at 27.8 percent in September 2025 while it was recorded at around 27 percent on a cumulative basis during April – September 2025-26. This growth in September 2025 was basically attributed to growth in shipment of Lead and products of Lead, Motor vehicles/Cars, Two and three wheelers, Iron and steel, and Electric Machinery among others. Region wise, decent growth in exports to ASEAN, North-East Asia, Sub-Saharan Africa, Latin America and South Asia helped engineering exports to improve over the year.
| Trade Flow | Export figures(in $ billion) | Growth (%) | ||||
|---|---|---|---|---|---|---|
| Sep-2025 | Sep-2026 | Apr-Sep 2024-25 | Apr-Sep 2025-26 | Sep-2026 over Sep-2025 | Apr-Sep 2024-25 over Apr-Sep 2025-26 | |
| Engineering exports | 9.17 | 10.36 | 105.94 | 111.49 | 12.90% | 5.25% |
| Overall merchandise exports | 36.91 | 36.61 | 395.66 | 402.93 | -0.82% | 1.84% |
| Share of engineering (%) | 24.86% | 28.30% | 26.77% | 27.67% | --- | --- |
| Service Exports | 31.65 | 39.53 | 351.93 | 387.93 | 24.90% | 10.23% |
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 | 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 |
| February | 9174.86 | 10358.70 | 12.9 |
| April - February | 105936.31 | 111492.90 | 5.25 |
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 September 2025 over September 2024 as well as in cumulative terms during April-September 2025-26 vis-à-vis April-September 2024-25. The data clearly shows that top 25 countries contribute almost 75 % of total engineering exports.
(US$ million)
| Countries | Sep-2025 | Sep-2026 | Growth (%) | April-February 2024-25 | April-February 2025-26 | Growth (%) |
|---|---|---|---|---|---|---|
| U S A | 1656.57 | 1575.77 | -4.88% | 17270.51 | 17771.62 | 2.9% |
| U ARAB EMTS | 688.22 | 591.93 | -13.99% | 7562.68 | 7221.03 | -4.52% |
| SAUDI ARAB | 323.58 | 458.5 | 41.7% | 5184.81 | 4647.54 | -10.36% |
| CHINA P RP | 207.45 | 436.18 | 110.26% | 2451.4 | 3073.63 | 25.38% |
| GERMANY | 433.9 | 430.39 | -0.81% | 3934.45 | 4511.59 | 14.67% |
| U K | 325.16 | 409.87 | 26.05% | 3584.15 | 4301.98 | 20.03% |
| MEXICO | 275.97 | 314.76 | 14.06% | 3221.76 | 3080.09 | -4.4% |
| KOREA RP | 224.96 | 309.78 | 37.7% | 2334.98 | 2786.53 | 19.34% |
| ITALY | 241.89 | 276.52 | 14.32% | 2732.27 | 3194.03 | 16.9% |
| SINGAPORE | 198.67 | 269.58 | 35.69% | 4134.7 | 3939.18 | -4.73% |
| NEPAL | 179.47 | 230.69 | 28.54% | 2033.96 | 2191.06 | 7.72% |
| SOUTH AFRICA | 184.25 | 214.85 | 16.61% | 2292.43 | 2615.73 | 14.1% |
| FRANCE | 216.28 | 205.18 | -5.13% | 2289.16 | 2122.77 | -7.27% |
| BRAZIL | 176.13 | 203.42 | 15.49% | 2021.88 | 2270.64 | 12.3% |
| JAPAN | 239.52 | 183.57 | -23.36% | 2226.7 | 2399.08 | 7.74% |
| NETHERLAND | 151.85 | 170.51 | 12.29% | 1732.74 | 2041.91 | 17.84% |
| TURKEY | 183.03 | 168.35 | -8.02% | 2791.57 | 1777.49 | -36.33% |
| VIETNAM SOC REP | 98.99 | 166.72 | 68.43% | 1296.05 | 1787.98 | 37.96% |
| THAILAND | 168.51 | 164.28 | -2.51% | 1823.56 | 1972.16 | 8.15% |
| SRI LANKA DSR | 95.77 | 162.43 | 69.61% | 1047.76 | 1600.78 | 52.78% |
| INDONESIA | 122.44 | 161.7 | 32.07% | 1808.25 | 1467.91 | -18.82% |
| CANADA | 96.78 | 161.49 | 66.87% | 1112.9 | 1273.81 | 14.46% |
| SPAIN | 97.7 | 160.02 | 63.79% | 1273.9 | 1635.45 | 28.38% |
| BELGIUM | 97.58 | 139.89 | 43.36% | 1254.34 | 1595.86 | 27.23% |
| AUSTRALIA | 90.83 | 138.3 | 52.26% | 1102.34 | 1419.24 | 28.75% |
| Total engineering exports to top 25 countries | 6775.5 | 7704.7 | 13.71% | 78519.24 | 82699.09 | 5.32% |
| Total engineering exports | 9174.86 | 10358.7 | 12.9% | 105936.31 | 111492.9 | 5.25% |
Source : DGCI&S
The following table depicts region wise India’s engineering exports for April-September 2025 as compared to April-September 2024
Note: Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.
(US$ million)
| Regions | Sep-2025 | Sep-2026 | Growth (%) | April-February 2024-25 | April-February 2025-26 | Growth (%) |
|---|---|---|---|---|---|---|
| NORTH AMERICA | 2029.32 | 2052.03 | 1.12% | 21605.17 | 22125.51 | 2.41% |
| EUROPEAN UNION | 1709.62 | 1822.01 | 6.57% | 18289.1 | 19923.99 | 8.94% |
| WANA | 1477.26 | 1532.63 | 3.75% | 17751.12 | 17077.53 | -3.79% |
| N E ASIA | 766.37 | 1008.26 | 31.56% | 7919.93 | 9337.86 | 17.9% |
| ASEAN | 731.68 | 958.68 | 31.02% | 11253.4 | 11624.32 | 3.3% |
| SSA( Sub Saharan Africa) | 677.2 | 866.13 | 27.9% | 7880.36 | 9058.37 | 14.95% |
| OTHER EUROPE | 530.37 | 630.93 | 18.96% | 6829.06 | 6540.46 | -4.23% |
| SOUTH ASIA | 531.07 | 592.65 | 11.6% | 5881.25 | 6144.47 | 4.48% |
| LATIN AMERICA | 465.72 | 588.05 | 26.27% | 5586.2 | 6382.05 | 14.25% |
| OCEANIA | 97.91 | 148.22 | 51.39% | 1232.03 | 1558.04 | 26.46% |
| CIS | 150.23 | 140.22 | -6.66% | 1649.46 | 1560.79 | -5.38% |
| OTHERS | 8.1 | 18.9 | 133.28% | 59.18 | 159.51 | 169.53% |
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 September 2025 vis-à-vis September 2024 as well as the cumulative exports for April-September 2025-26 vis-à-vis April-September 2024-25. These are indicated in the tables below.
Reasons for Decline (As per April-September 2025-26):
Aluminium
Zinc
As per the London Metal Exchange the global zinc market is facing significant downturn due to international trade tensions and weak macroeconomic conditions
India’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.
(US$ million)
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
| IRON AND STEEL | 688.75 | 844.21 | 22.57% | 8440.97 | 9415.03 | 11.54% |
| PRODUCTS OF IRON AND STEEL | 831.53 | 837.35 | 0.7% | 9135.56 | 9548.63 | 4.52% |
| Sub Total | 1520.28 | 1681.56 | 11% | 17576.53 | 18963.66 | 8% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Aluminium and products made of Aluminium | 494.85 | 595.53 | 20.34% | 6200.85 | 6362.97 | 2.61% |
| Copper and products made of copper | 171.68 | 338.11 | 96.94% | 2114.66 | 3225.44 | 52.53% |
| Lead and products made of Lead | 93.48 | 100.97 | 8.01% | 836.73 | 1164.16 | 39.13% |
| Nickel and products made of Nickel | 16.49 | 17.87 | 8.42% | 169.38 | 167.95 | -0.85% |
| Other Non Ferrous Metals and their products | 71.07 | 89.67 | 26.16% | 784.5 | 946.08 | 20.6% |
| Tin and products made of Tin | 1.04 | 8.84 | 752.82% | 19.58 | 43.08 | 120.01% |
| Zinc and products made of zinc | 57.92 | 83.5 | 44.15% | 675.93 | 768.93 | 13.76% |
| Sub Total | 906.53 | 1234.48 | 36% | 10801.63 | 12678.6 | 17% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor | 164.09 | 205.89 | 25.48% | 1744.3 | 2052.02 | 17.64% |
| IC Engines and Parts | 344.65 | 327.11 | -5.09% | 3485.85 | 3771.14 | 8.18% |
| Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc | 685.05 | 751.39 | 9.68% | 7457.54 | 8238.29 | 10.47% |
| Machine Tools | 72.44 | 67.48 | -6.85% | 724.86 | 822.83 | 13.52% |
| Machinery for ATMs, Injecting Moulding machinery, valves, etc | 242.4 | 257.9 | 6.39% | 2558.73 | 2836.95 | 10.87% |
| Nuclear Reactors, Industrial Boilers and Parts | 74.06 | 89.71 | 21.12% | 754.08 | 932.11 | 23.61% |
| Pumps of all types | 124.51 | 129.27 | 3.82% | 1407.59 | 1500.27 | 6.58% |
| Sub Total | 1707.2 | 1828.74 | 7.12% | 18132.95 | 20153.61 | 11.14% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Electric Machinery and Equipment | 1224.03 | 1301.46 | 6.33% | 12992.9 | 14027.87 | 7.97% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| AUTO COMPONENTS/PARTS | 654.441 | 711.473 | 8.71% | 7399.807 | 7831.015 | 5.83% |
| AUTO TYRES AND TUBES | 236.531 | 262.552 | 11% | 2781.476 | 2916.417 | 4.85% |
| Motor Vehicle/cars | 716.989 | 1004.641 | 40.12% | 8092.935 | 10093.592 | 24.72% |
| Two and Three Wheelers | 265.642 | 358.863 | 35.09% | 2902.877 | 3599.577 | 24% |
| Sub Total | 1873.604 | 2337.529 | 24.76% | 21177.095 | 24440.601 | 15.41% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| Aircrafts, Spacecrafts and Parts | 341.56 | 143.37 | -58.02% | 6730.69 | 1499.29 | 338.96% |
| Ships, Boats and Floating Structures | 222.44 | 332.89 | 49.66% | 4041.55 | 3729.74 | 1576.75% |
| Sub Total | 564 | 476.27 | -15.55% | 10772.24 | 5229.03 | -51.46% |
Source : DGCI&S
US$ Million
| Product panels | February-2025 | February-2026 | Growth | April-February 2024-25 | April-February 2025-26 | Growth |
|---|---|---|---|---|---|---|
| BICYCLE AND PARTS | 36.62 | 39.7 | 8.44% | 364.61 | 431.55 | 18.36% |
| Hand Tools, Cutting Tools and Implements made of Metals | 80.99 | 82.4 | 1.74% | 941.72 | 933.84 | -0.84% |
| Medical and Scientific Instruments | 314.97 | 246.54 | -21.73% | 2623.48 | 2603.1 | -0.78% |
| OFFICE EQUIPMENTS | 19.99 | 35.7 | 78.64% | 256.32 | 364.53 | 42.22% |
| OTHER CONSTRUCTION MACHINERY | 258.01 | 325.8 | 26.27% | 2726.11 | 3306.26 | 21.28% |
| OTHER MISC. ITEMS | 421.29 | 483.45 | 14.76% | 4623.8 | 5172.75 | 11.87% |
| PRIME MICA AND MICA PRODUCTS | 2.17 | 1.85 | -14.62% | 28.1 | 27.03 | -3.8% |
| Railway Transport and Parts | 22.25 | 48.14 | 116.4% | 329.02 | 460.53 | 39.97% |
| PROJECT GOODS | 0.18 | 0.12 | -34.57% | 2.32 | 1.74 | -24.74% |
| OTHR RUBBER PRODCT EXCPT FOOTW | 136.79 | 149.96 | 9.63% | 1607.47 | 1706.04 | 6.13% |
Source : DGCI&S
We now analyze the performance of some of the important products for the fiscal April-September 2025-26 vis-à-vis April- September 2024-25. We have taken the major panels and computed the top importers to get an idea of the current trade pattern.
(US$ million)
| Product panels | Top 5 nations | April-February 2024-25 | April-February 2025-26 | Growth (%) |
|---|---|---|---|---|
| Iron and Steel and Products made of Iron and Steel | ||||
| U S A | 3306.78 | 3399.56 | 3% | |
| U ARAB EMTS | 1402.36 | 1422.07 | 1% | |
| ITALY | 1225.91 | 1403.02 | 14% | |
| U K | 794.55 | 799.15 | 1% | |
| NEPAL | 812.78 | 764.44 | -6% | |
| Non-Ferrous Metals and Products made of Non-Ferrous Metals | ||||
| U S A | 1360.66 | 1616.87 | 19% | |
| SAUDI ARAB | 690.81 | 1218.02 | 76% | |
| KOREA RP | 881.94 | 1158.26 | 31% | |
| CHINA P RP | 567.95 | 1009.72 | 78% | |
| VIETNAM SOC REP | 380.25 | 645.4 | 70% | |
| Industrial Machinery | ||||
| U S A | 3790.94 | 3965.04 | 5% | |
| U ARAB EMTS | 885.33 | 1209.99 | 37% | |
| GERMANY | 803.15 | 893.32 | 11% | |
| CHINA P RP | 784.52 | 854.41 | 9% | |
| SAUDI ARAB | 601.55 | 714.71 | 19% | |
| Electrical Machinery | ||||
| U S A | 2467.93 | 2705.88 | 10% | |
| U K | 1047.72 | 1399.94 | 34% | |
| SINGAPORE | 1405.31 | 1381.71 | -2% | |
| GERMANY | 886.01 | 992.84 | 12% | |
| KOREA RP | 601.31 | 758.46 | 26% | |
| Automobiles | ||||
| U S A | 2184.56 | 2065.88 | -5% | |
| SOUTH AFRICA | 1474.3 | 1718.77 | 17% | |
| MEXICO | 1651.78 | 1712.35 | 4% | |
| SAUDI ARAB | 1471.75 | 1544.7 | 5% | |
| U ARAB EMTS | 1022.68 | 1252.3 | 22% | |
| Aircrafts and Spacecraft parts and products | ||||
| U S A | 408.63 | 458.19 | 12% | |
| FRANCE | 721.02 | 276.66 | -62% | |
| U K | 138.83 | 170.45 | 23% | |
| GERMANY | 69.75 | 87.62 | 26% | |
| SINGAPORE | 74.21 | 65.2 | -12% | |
| Ships Boats and Floating products and parts | ||||
| U ARAB EMTS | 1030.25 | 1253.61 | 22% | |
| SINGAPORE | 1706.98 | 1232.6 | -28% | |
| SRI LANKA DSR | 236.59 | 334.46 | 41% | |
| CHINA P RP | 0.01 | 161.13 | 1332694% | |
| INDONESIA | 306.38 | 145 | -53% | |
| Project Goods | ||||
| U S A | 0.37 | 0.43 | 18% | |
| FRANCE | 0.03 | 0.27 | 781% | |
| U K | 0.01 | 0.16 | 2342% | |
| NIGERIA | 0.03 | 0.12 | 248% | |
| OMAN | 0.01 | 0.1 | 1361% | |
| Other Rubber Product Except Footwear | ||||
| U S A | 365.95 | 352.45 | -4% | |
| GERMANY | 102.08 | 124.1 | 22% | |
| U ARAB EMTS | 69.45 | 75.46 | 9% | |
| CHINA P RP | 60.29 | 68.36 | 13% | |
| NETHERLAND | 60.78 | 58.97 | -3% | |
| Other engineering products | ||||
| U S A | 2717.61 | 2867.62 | 6% | |
| U ARAB EMTS | 548.78 | 714.38 | 30% | |
| GERMANY | 680.7 | 699.03 | 3% | |
| U K | 551.38 | 625.02 | 13% | |
| BRAZIL | 328.37 | 363.44 | 11% |
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 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.
(US$ million)
| Top States | Cumulative Export April-January 2025-26 | Share % | Remark |
|---|---|---|---|
| Maharashtra | 27986 | 27.43% | 91.5% share covered by top 12 states |
| Tamil Nadu | 19795.9 | 19.4% | |
| Gujarat | 15535.6 | 15.22% | |
| Delhi | 5793.3 | 5.68% | |
| Karnataka | 5720 | 5.61% | |
| Haryana | 4280.7 | 4.19% | |
| Odisha | 4186.5 | 4.1% | |
| West Bengal | 3820.7 | 3.74% | |
| Andhra Pradesh | 3676.9 | 3.6% | |
| Uttar Pradesh | 2805.4 | 2.75% | |
| Punjab | 1791.3 | 1.76% | |
| Rajasthan | 1375.4 | 1.35% | |
| Telangana | 1232.8 | 1.21% | |
| Bihar | 1129.2 | 1.11% | |
| Kerala | 1022.8 | 1% | |
| Goa | 764.7 | 0.75% | |
| Madhya Pradesh | 653.7 | 0.64% | |
| Uttarakhand | 409.6 | 0.4% | |
| Assam | 43.6 | 0.04% | |
| Puducherry | 13.8 | 0.01% | |
| Himachal Pradesh | 3.2 | 0% | |
| Others | 2.1 | 0% | |
| Chhattisgarh | 0 | 0% | |
| Jammu & Kashmir | 0 | 0% | |
| Meghalaya | 0 | 0% |
Source : DGCI&S
Note : DGCI&S state wise data available till Sep-2026
Value in US$ million
| Region | Apr-Sep 2024-25($Mn) | Apr-Sep 2025-26 ($Mn) | Growth % |
|---|---|---|---|
| WESTERN REGION | 39440.5 | 44940 | 13.94% |
| NORTHERN REGION | 16253 | 16458.9 | 1.27% |
| Others | 0 | 2.1 | 0% |
| SOUTHERN REGION | 33461.9 | 31462.2 | -5.98% |
| EASTERN REGION | 8386.6 | 9180 | 9.46% |
| Grand Total | 97542 | 102043.2 | 4.61% |
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 as 10 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. Then, In June, July and August 2025 however, both moved on the same direction. In June and July, both witnessed improvement in growth while in Aug 2025, both conceded moderation in growth. In September 2025 however, engineering growth continued to slowdown but manufacturing growth accelerated.
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 |
| 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 |
| December 2026 | 1.29 | 8.4 |
Source :Department of Commerce and CSO
How did the exchange rate fare during September 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 September 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 |
| 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 |
| February | 87.05 | 90.77 | 4.27 | Depreciation | -0.03 | Appreciation |
Rupee depricitaed vis-à-vis the US Dollar for the fourth straight month to September 2025 both on a monthly as well as yearly basis: INR depreciated vis-à-vis the US Dollar by 0.91 percent in September 2025 over the previous month and a much higher 5.38 percent on a year-on-year basis. Rupee closed the month of September at 88.79, just a step away from it's all-time weakest level of 88.80. Capital outflow due to uncertainty over US pressure on India in the form of higher tariff and warning on oil purchase from Russia weighed on rupee. Higher governemnt borrowing and rise in gold import added fuel to it. Despite of a weakening dollar index, rupee is down.
Outlook: Rupee is not expected to see any further sharp fall in the near term. It is expected to remain rangebound as dollar remains under pressure against some major currencies. However, global uncertainty will keep the currency market volatile.
(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 | August | September | October | November | December | January | February |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Engineering Export | 9.5 | 9.9 | 9.5 | 10.4 | 9.9 | 10.1 | 9.4 | 11.0 | 11.0 | 10.4 | 10.4 |
| Engineering Import | 13.4 | 13.8 | 11.5 | 14.0 | 13.2 | 13.4 | 13.8 | 13.5 | 14.0 | 14.0 | 12.9 |
| Trade Balance | -3.9 | -3.9 | -2.0 | -3.6 | -3.3 | -3.3 | -4.4 | -2.5 | -3.0 | -3.6 | -2.5 |
Source : DGCI&S
The latest version of UNCTAD’s Global Trade update published this month paints a significantly positive picture of global trade when compared to its previous updates. It mentions that global trade expanded by almost USD 500 billion in the first six months of 2025 despite significant threats regarding USA’s tariff imposition, protectionist policies in EU, ongoing geographical conflicts, etc. Global merchandise trade grew by almost 2 to 2.5% quarter over quarter. This is indeed also reflected by India’s engineering export performance - Engineering exports continued its growth run for the fourth straight month to September 2025. India’s exports to Sub-Saharan Africa, ASEAN, Latin America and ASEAN regions gained significantly – this cooroborates with the UNCTAD global trade updte which states that the major driver of global trade has been South-South trade. Among India’s major export destinations, exports to the USA declined mainly due to the imposition of reciprocal tariff. It needs to be noted here that the impact of the Section 232 tariff has been low especially on steel and aluminium sector as during September 2025, exports to the US for both sectors grew significantly. Among other major destinations, there was a decline in exports to UAE which is mainly due to decline in exports in the ships, boats and floating structure – in September alone its exports declined by more than 60% while exports of all other major commidities rose. Given the above trends, it is important to note that South-South trade will be a major driver of global trade even in the coming years. Therefore India is in the right direction as it negotiates key FTAs with Latin American countries such as Chile, Peru and MERCOSUR and GCC countries. Going forward several challenges are still plaguing the domestic engineering sectors including high raw material prices, lack of access to export funding, export controls by other countries on critical raw material such as the Rare-Earth export controls by China, etc. We are hopeful that with proper guidance from the Government we will be able to face these challenges and continue the growth streak.
Monthly Trend
Highlights
Product Panels
Impact of Exchange Rate
Conclude