India's Engineering Exports Jump 18% To $12.24 Billion In July US Remains Top Market

(MENAFN- Live Mint) India's engineering goods exports grew 18% year-on-year to $12.24 billion in July 2026, remaining above $10 billion in each of the first four months of FY27, industry body EEPC India said on Wednesday. Engineering exports stood at $10.40 billion in July 2025.

The growth in engineering shipments during July was higher than the 17% year-on-year increase in India's overall merchandise exports during the month. Engineering exports accounted for 27.7% of India's total merchandise exports in July 2026, according to the government's quick estimates.

Engineering exports expanded across nearly all key markets, barring a few such as Saudi Arabia, Thailand and Turkey. Exports to Saudi Arabia were affected by the logistics crisis in and around the Strait of Hormuz. Most of Saudi Arabia's engineering imports are project-linked, and the ongoing conflict in the region has affected some projects, weakening purchasing activity, EEPC India said. Engineering shipments to the US grew 20% year-on-year to $2.18 billion in July, while exports to China rose 32% to $349 million.

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Out of 34 engineering product categories, 27 recorded positive year-on-year growth in July. Seven saw declines, including iron and steel products, lead products, machine tools, aircraft and spacecraft parts, office equipment, and heavy machinery like cranes, lifts and winches.

Q1 performance

On a cumulative basis, engineering exports during April-July 2027 (Q1FY27) stood at $46.38 billion, up from $39.24 billion in the corresponding period of the previous fiscal year, marking 18.21% growth. Engineering goods accounted for 26.7% of total merchandise exports over this period.

The US remained the top destination for Indian engineering exports during April-July, with shipments worth $7.78 billion, up 11.8% year-on-year. Engineering exports to Germany, the UK and Singapore also recorded moderate to high growth, while shipments to Saudi Arabia declined year-on-year.

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Pankaj Chadha, chairman of EEPC India, said,“Engineering exports have remained above $10 billion in the first four months of FY27 but challenges remain ahead. Higher energy and shipping costs, geopolitical tensions, protectionist measures and increasingly stringent technical and regulatory requirements could raise the cost of market access.”

Chadha also cited the role of non-tariff measures in raising trade costs for exporters. He said technical regulations, health and safety requirements, and certification procedures can pose significant challenges, particularly for developing economies.

“In these challenging times, it is important for Indian engineering exporters to sustain the present momentum, which can be achieved with greater competitiveness, scale, technological upgrading, compliance capacity, and market diversification,” Chadha said. He added that while industry players must take the lead, government support will be crucial to maintaining long-term export growth.

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