India’s engineering goods exports posted a modest but significant recovery in June 2025, recording a 1.35 per cent year-on-year growth and reaching $9.5 billion, according to a report. This rebound was largely driven by a strong surge in iron and steel exports, along with increased shipments of transport equipment and auto components, marking a positive shift for one of the country’s most critical export sectors.
The report notes that this is the first instance of monthly growth in engineering exports after a period of subdued performance. The resurgence was led by robust demand for iron and steel products, supported by favourable global pricing, improved logistics, and enhanced production capacities. Additionally, exports of two- and three-wheeler components, particularly for electric vehicles, contributed significantly to the overall growth.
The improvement is attributed to stabilising demand in major global markets such as the UK, US, and Southeast Asia, coupled with competitive pricing from Indian manufacturers. The depreciation of the rupee against major currencies has also played a role in making exports more attractive.
Cumulatively, engineering goods exports for the first quarter of FY26 (April–June 2025) reached $28.91 billion, setting a cautious but hopeful tone for achieving the annual export target. Exporters remain optimistic but have flagged ongoing challenges such as volatile raw material costs, high shipping expenses, and complex compliance norms in some importing countries.
As engineering goods account for nearly a quarter of India’s total merchandise exports, the sector’s growth is seen as a vital indicator of industrial health. The continued momentum in iron and steel exports is expected to be a major growth driver, supported by recent trade policy reforms, increased investment in production infrastructure, and expanding demand for high-grade, value-added steel products.
