India's Engineering Exports Hit USD 122.43 Bn In FY26, Up 4.86% Yoy: EEPC India

(MENAFN- KNN India) New Delhi, Apr 23 (KNN) India's engineering exports remained resilient in FY26, reaching a record USD 122.43 billion, up 4.86 per cent year-on-year (YoY) from USD 116.75 billion in FY25, according to EEPC India.

Despite higher tariffs under US President Donald Trump, the US continued as the largest destination, with exports rising 2.3 per cent YoY to USD 19.60 billion.

Among the 25 key destinations for Indian engineering goods, exports grew in major markets, including Germany, United Kingdom, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.

However, shipments to the UAE (the second-largest market) and Saudi Arabia (the fourth-largest market) declined by 10 per cent and 13 per cent, respectively.

March Growth Amid Supply Disruptions

Engineering exports rose 1.13 per cent YoY to USD 10.94 billion in March 2026, from USD 10.82 billion, despite disruptions caused by the Iran conflict and the closure of the Strait of Hormuz.

Out of 34 product categories defined by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), 26 recorded year-on-year growth in FY26, while only 8 saw declines compared to the previous fiscal.

Sharp Decline in WANA Region

Exports to the West Asia and North Africa (WANA) region fell sharply by 50.7 per cent YoY in March 2026 due to supply chain disruptions. Shipments to the UAE and Saudi Arabia dropped 67 per cent and 45 per cent, respectively, also impacting re-export hubs and warehouse operations.

Outlook

Engineering exports accounted for 27.71 per cent of India's total merchandise exports in FY26, with growth seen in North America (1.9 per cent) YoY and the European Union (8.6 per cent). Declines were reported in WANA (8 per cent), Other Europe (4.5 per cent), and CIS regions (5.9 per cent).

EEPC India Chairman Pankaj Chadha said, "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."

(KNN Bureau)

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