India’s engineering exports experienced a significant resurgence in November 2025, marking a positive turn after a challenging October. Driven by increased demand from key markets like the United States and the European Union, the sector demonstrated resilience and adaptability in a dynamic global trade landscape. This rebound signals a strengthening of India’s manufacturing capabilities and its growing role in the international supply chain.
Strong Rebound in November 2025 Engineering Exports
Following a sharp decline in October 2025 – the lowest point of the fiscal year – Indian engineering exports rebounded strongly in November, reaching USD 11.01 billion. This represents a substantial 23.76% increase compared to the USD 8.90 billion recorded in November 2024, according to data released by the Engineering Export Promotion Council of India (EEPC). The recovery is attributed to a favorable base effect and, crucially, a surge in shipments to both the US and EU.
October’s Dip and the Subsequent Recovery
October 2025 saw a 17% year-on-year decline in engineering exports, raising concerns about the sector’s performance. However, the November figures demonstrate a swift and effective response from Indian exporters, highlighting their ability to navigate fluctuating global conditions. Pankaj Chadha, Chairman of EEPC India, emphasized that crossing the USD 11 billion mark for the first time in the current fiscal is “a testament to the relentless effort of the exporting community.”
Global Trade Trends Fueling Growth
The positive trend in India’s engineering exports aligns with broader global trade growth. A recent UNCTAD Trade Update forecasts that global trade in goods and services will exceed USD 35 trillion in 2025, a roughly 7% increase from 2024. This overall expansion in global commerce provides a supportive environment for Indian manufacturers and exporters.
The EEPC data reveals that 32 out of 34 product panels experienced increased exports in November 2025 compared to the previous year. Particularly strong performances were seen in segments like motor vehicles/cars, ships, boats and floating structures, industrial machinery for agriculture, electric machinery and equipment, and copper products. This broad-based growth indicates a healthy and diversified export portfolio.
Key Markets: US and EU Drive Demand
The United States and the European Union are consistently India’s top two export destinations for engineering goods, and November 2025 was no exception. While both markets experienced declines in September and October, they rebounded significantly in November.
US Export Performance
Engineering exports to the US increased by 11.4% in November 2025, reaching USD 1.58 billion, compared to USD 1.42 billion in the same month of 2024. This recovery follows declines of 9.4% and 14.5% in September and October respectively, demonstrating the US market’s continued importance.
EU Export Performance
The EU witnessed an even more substantial increase, with engineering exports jumping 39% in November to USD 2.02 billion, up from USD 1.46 billion in November 2024. This significant growth underscores the EU’s growing appetite for Indian-made engineering products. This surge in demand is a positive indicator for the Indian economy.
Government Support and Future Prospects
The Indian government’s commitment to promoting exports is evident in the recent approval of the Export Promotion Mission (EPM). Additionally, recently concluded Free Trade Agreements (FTAs) with Oman and New Zealand are expected to further facilitate the flow of engineering goods to these regions.
Chadha expressed optimism about future trade deals, stating, “We sincerely hope that the upcoming FTAs with the EU and the BTA with the US will also be instrumental for us.” These agreements, if successfully negotiated, could unlock significant new opportunities for Indian exporters. However, he also cautioned that exporters should remain vigilant given the increasing volatility in global trade.
Cumulative Performance and Sectoral Insights
On a cumulative basis, engineering exports during April-November 2025-26 were 4.25% higher, totaling USD 79.74 billion, compared to USD 76.49 billion during the same period last fiscal year. The share of engineering in India’s total merchandise exports rose to 28.9% in November 2025, further solidifying its position as a key contributor to the nation’s export earnings.
While the overall trend is positive, some sectors have lagged behind. Data indicates that aluminium products, aircraft and spacecrafts, ships, boats, and floating products, and project goods all recorded negative growth during April-November 2025-26. Addressing the challenges faced by these specific segments will be crucial for sustaining the overall momentum of India’s engineering export sector. The focus on diversifying export baskets remains a key strategy.
In conclusion, the strong rebound in India’s engineering exports in November 2025 is a welcome development, driven by robust demand from the US and EU and supported by favorable global trade conditions and government initiatives. While challenges remain, the sector’s resilience and adaptability position it for continued growth in the coming months. Exporters should continue to monitor global trends and leverage available support mechanisms to capitalize on emerging opportunities and maintain a competitive edge in the international market. Further analysis of the EEPC data and ongoing engagement with policymakers will be vital for ensuring the sustained success of India’s engineering export sector.
