- India’s engineering exports reached a record US$12.31 billion in May 2026, growing 24.48% year-on-year despite West Asia conflict and global trade challenges.
New Delhi.: India’s engineering exports touched a historic milestone in May 2026, crossing the US$12 billion mark for the first time during the month. Despite geopolitical tensions in West Asia and ongoing global trade disruptions, engineering goods exports reached US$12.31 billion, reflecting the sector’s resilience and growing global competitiveness.
According to the Government of India’s Quick Estimates, engineering exports increased by 24.48 per cent compared to US$9.89 billion recorded in May 2025. The sector accounted for 27.2 per cent of India’s total merchandise exports during the month, reaffirming its position as one of the country’s strongest export contributors.
The growth was supported by robust shipments of electrical machinery and equipment, ships and floating structures, motor vehicles, iron and steel, and engineering products, with 28 out of 34 engineering product categories registering positive export growth in May.
EEPC India Sees Strong Long Term Growth Potential
Commenting on the export performance, EEPC India Chairman Pankaj Chadha said the latest figures demonstrate the engineering sector’s resilience despite global uncertainties. He noted that multinational companies are increasingly diversifying their supply chains to reduce dependence on a single manufacturing hub, creating new opportunities for Indian engineering exporters.
He added that Indian companies need to enhance production capacity, improve quality standards, strengthen logistics, and comply with international regulations to capitalise on these opportunities. He also stressed the importance of continued policy support from the Ministry of Commerce and Industry through faster policy interventions, affordable trade finance, and stronger export risk protection.
Chadha expressed confidence that with sustained government support, India could achieve its engineering export target of US$250 billion by 2030.
Diversification Strategy Continues to Deliver Results
Indian engineering exporters have increasingly diversified both their product portfolio and export destinations to reduce dependence on a limited number of markets. This strategy has enabled exporters to maintain growth despite geopolitical tensions, shifting global supply chains, and rising protectionist measures in several economies.
While the global economy continues to face challenges including inflation, weak manufacturing demand, high borrowing costs, and trade fragmentation, India’s engineering sector has maintained strong momentum following record export performances over the previous two financial years.
Engineering Exports Rise 16.8% in First Two Months of FY27
During April-May FY2026-27, cumulative engineering exports stood at US$22.66 billion, compared with US$19.41 billion during the corresponding period of the previous financial year, registering a 16.8 per cent year-on-year increase.
Region-wise, North America remained the largest market for Indian engineering products, accounting for 19.3 per cent of exports, followed by West Asia and North Africa (16.7 per cent) and the European Union (15.2 per cent).
Notably, exports to the West Asia and North Africa (WANA) region increased by 44.3 per cent in May 2026, despite ongoing geopolitical tensions, while exports to the region during April-May rose by 14.1 per cent.
USA Continues as India’s Largest Engineering Export Market
Country-wise data showed positive growth across India’s top engineering export destinations, including the United States, the United Arab Emirates, the United Kingdom, Germany, and Saudi Arabia during the first two months of FY2026-27.
The United States retained its position as the largest destination for Indian engineering exports, with shipments worth US$3.64 billion during April-May FY2026-27, representing a 7 per cent increase over the same period last year.
The latest export figures indicate that India’s engineering industry continues to strengthen its global presence and remains well-positioned to benefit from changing international supply chains and expanding overseas demand, despite continuing geopolitical and economic uncertainties.
