New Delhi: Despite high tariffs imposed by the Trump administration, the US remained the top destination for Indian engineering goods in the financial year ending March 2026, recording 2.3% year-on-year growth to $19.60 billion.
The trend shows the sector's resilience and the exporting community's ability to navigate back-to-back challenges.
Among the 25 key destinations for Indian engineering goods, exports to the second-largest market, the UAE, and the fourth-largest market, Saudi Arabia, however, slumped by 10% and 13%, respectively, in 2025-26 (FY26).
The key markets that saw shipments of Indian engineering goods rising during FY26 included Germany, the UK, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.
Overall, Indian engineering shipment from India was recorded at an all-time high of $122.43 billion in FY26 as against $116.75 billion in the previous fiscal, thus registering a growth of 4.86%.
The month of March 2026 witnessed 1.13% year-on-year growth in engineering exports over March 2026 even at the time of extreme supply disruption following the Iran War and subsequent closure of the Strait of Hormuz. Engineering shipment from India in March 2026 rose to US$10.94 billion from $10.82 billion in March 2025.
Among the 34 product panels as defined by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), as many as 26 product panels achieved year-on-year growth in exports during fiscal 2025-26, while only eight conceded declines over the previous fiscal.
During March 2026, exports to the West Asia and North Africa (WANA) region dropped by as much as 50.7% due to supply chain issues following the closure of Hormuz. Among the major exporting countries, exports to the UAE and Saudi Arabia experienced substantial year-on-year drops of 67% and 45%, respectively, during this period.
With the UAE being a trade-transshipment hub, several Indian exporters have warehouses there for further trade with Europe, Africa, and the USA. The recent geopolitical conflicts in the region have also impacted these warehouse activities.
Pankaj Chadha, Chairman, EEPC India, said, in a statement that Indian engineering exports exhibited remarkable resilience as it achieved record value for the second consecutive year. "The export growth came at a time when global trade faced unprecedented challenges in the form of the geopolitical crisis in the Middle East and West Asia, which blocked one of the key sea routes in the region. Despite these external pressures, India’s overall engineering exports remained positive in FY26 in North America, Europe, Latin America, etc. Only exports to the WANA region suffered due to the direct consequence of the conflict. This stellar performance is surely a testament to the perseverance and determination of our exporting community," Chadha said.
The export performance in FY26 is significant in the context of India’s medium‑term objective of achieving US$ 250 billion in engineering exports by 2030. Sustaining growth in a year characterised by global uncertainty strengthens the foundation for accelerated expansion in the coming years.
While appreciating the government’s timely support, Mr. Chadha said that policy measures announced during the year, including the Resilience & Logistics Intervention for Export Facilitation (RELIEF) Scheme with an outlay of Rs 497 crore, contributed to trade continuity during the WANA crisis.
The RELIEF scheme is aimed at addressing war‑risk insurance, insurance premium volatility, and elevated logistics costs.
The EEPC India Chairman added, "Going forward, the combination of sectoral resilience, market diversification, and targeted policy interventions will remain critical for sustaining export momentum and progressing towards long‑term export targets."
As per the quick estimates of the government, engineering is the largest component of merchandise exports. In FY26, its share of the total merchandise exports was 27.71%. The share in March 2026 was even better at 28.11%.
Among the exporting regions, engineering exports to North America increased by 1.9% while those to the European Union increased by a higher 8.6% in 2025-26 over the previous fiscal. Exports to all other regions increased in 2025-26 except WANA, Other Europe, and CIS. While exports to WANA dropped by 8% in FY26, engineering shipments to Other Europe and CIS fell by 4.5% and 5.9% year-on-year, respectively.
The trend shows the sector's resilience and the exporting community's ability to navigate back-to-back challenges.
Among the 25 key destinations for Indian engineering goods, exports to the second-largest market, the UAE, and the fourth-largest market, Saudi Arabia, however, slumped by 10% and 13%, respectively, in 2025-26 (FY26).
The key markets that saw shipments of Indian engineering goods rising during FY26 included Germany, the UK, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.
Overall, Indian engineering shipment from India was recorded at an all-time high of $122.43 billion in FY26 as against $116.75 billion in the previous fiscal, thus registering a growth of 4.86%.
The month of March 2026 witnessed 1.13% year-on-year growth in engineering exports over March 2026 even at the time of extreme supply disruption following the Iran War and subsequent closure of the Strait of Hormuz. Engineering shipment from India in March 2026 rose to US$10.94 billion from $10.82 billion in March 2025.
Among the 34 product panels as defined by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), as many as 26 product panels achieved year-on-year growth in exports during fiscal 2025-26, while only eight conceded declines over the previous fiscal.
During March 2026, exports to the West Asia and North Africa (WANA) region dropped by as much as 50.7% due to supply chain issues following the closure of Hormuz. Among the major exporting countries, exports to the UAE and Saudi Arabia experienced substantial year-on-year drops of 67% and 45%, respectively, during this period.
With the UAE being a trade-transshipment hub, several Indian exporters have warehouses there for further trade with Europe, Africa, and the USA. The recent geopolitical conflicts in the region have also impacted these warehouse activities.
Pankaj Chadha, Chairman, EEPC India, said, in a statement that Indian engineering exports exhibited remarkable resilience as it achieved record value for the second consecutive year. "The export growth came at a time when global trade faced unprecedented challenges in the form of the geopolitical crisis in the Middle East and West Asia, which blocked one of the key sea routes in the region. Despite these external pressures, India’s overall engineering exports remained positive in FY26 in North America, Europe, Latin America, etc. Only exports to the WANA region suffered due to the direct consequence of the conflict. This stellar performance is surely a testament to the perseverance and determination of our exporting community," Chadha said.
The export performance in FY26 is significant in the context of India’s medium‑term objective of achieving US$ 250 billion in engineering exports by 2030. Sustaining growth in a year characterised by global uncertainty strengthens the foundation for accelerated expansion in the coming years.
While appreciating the government’s timely support, Mr. Chadha said that policy measures announced during the year, including the Resilience & Logistics Intervention for Export Facilitation (RELIEF) Scheme with an outlay of Rs 497 crore, contributed to trade continuity during the WANA crisis.
The RELIEF scheme is aimed at addressing war‑risk insurance, insurance premium volatility, and elevated logistics costs.
The EEPC India Chairman added, "Going forward, the combination of sectoral resilience, market diversification, and targeted policy interventions will remain critical for sustaining export momentum and progressing towards long‑term export targets."
As per the quick estimates of the government, engineering is the largest component of merchandise exports. In FY26, its share of the total merchandise exports was 27.71%. The share in March 2026 was even better at 28.11%.
Among the exporting regions, engineering exports to North America increased by 1.9% while those to the European Union increased by a higher 8.6% in 2025-26 over the previous fiscal. Exports to all other regions increased in 2025-26 except WANA, Other Europe, and CIS. While exports to WANA dropped by 8% in FY26, engineering shipments to Other Europe and CIS fell by 4.5% and 5.9% year-on-year, respectively.
