Tariff impact: Engineering exports to US slip 9% in September, Pg21.

Key Highlights:

• Engineering goods exports saw an overall increase of 2.93% in September 2025, reaching $10.11 billion.
• Exports to the US slipped by 9% to $1.4 billion, while exports to the UAE decreased by 5.3% to $636.86 million.
• Exports to Germany, UK, Saudi Arabia, Singapore, and Italy increased between 18% and 45%.
• The Indian Rupee depreciated by approximately 5% in September 2025 compared to the previous year.
• Steel & Iron and automobile exports increased by 17% and 33%, respectively, while industrial machinery exports decreased by 18%.

Detailed Insights:

• The depreciation of the Indian Rupee against the US Dollar for the fourth consecutive month contributed to maintaining positive total goods exports despite tariff pressures.
• Capital outflows due to uncertainties surrounding US tariffs and concerns over oil purchases from Russia put pressure on the Rupee.
• Global trade expanded by nearly $500 billion in the first half of 2025, despite challenges like US tariff impositions, EU protectionist policies, and ongoing geopolitical conflicts.
• Increased exports to Sub-Saharan Africa, Latin America, and ASEAN regions indicate that South-South trade is a significant driver of global trade.
• The Engineering Export Promotion Council of India (EEPC) reported that global merchandise trade grew by approximately 2 to 2.5% quarter over quarter.

Key Concepts Involved:

• Depreciation: A decrease in the value of a currency relative to other currencies.
• Tariff: A tax or duty imposed on goods when they are moved across a political boundary.
• South-South Trade: The exchange of resources, technology, and knowledge between developing countries.