Engineering exports declined by 9.7% to $4.67 billion in August 2012 due to sluggish demand in markets like the US and Europe.
In August last year, these exports stood at $5.17 billion, according to data released by the Engineering Export Promotion Council (EEPC), which is under Commerce Ministry.
"The decline in engineering exports was expected given the global market conditions," EEPC Chairman Aman Chadha said.
The exporters are getting lesser number of orders due to weak demand in markets like the US and Europe, he added.
The US and Europe together account for over 60% of India's total engineering exports.
The council has urged the government to extend sops to the sector for boosting exports.
"Perhaps, additional policy measures like Focus Product Scheme, Focus Market Scheme and Market-Linked Focus Product Scheme are required to revive growth in engineering exports," Chadha said.
During April-August 2012-13, engineering exports dipped 11% to about $20 billion compared to the same period last year.
India exports engineering items such as transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.
During 2011-12, the country's engineering exports grew 17% to $59 billion compared to $49.7 billion in the previous fiscal.