NEW DELHI — India’s engineering exports to the United States grew 2.3 percent year over year to $19.60 billion in the 2025–26 fiscal year, retaining the U.S. as the top destination despite higher tariffs, according to industry data released Thursday.
Overall engineering exports reached a record $122.43 billion in FY26, up nearly 5 percent from $116.75 billion in the previous fiscal year, data compiled by the Engineering Export Promotion Council (EEPC) India showed.
The growth came even as shipments to the West Asia and North Africa (WANA) region declined sharply due to geopolitical disruptions. Exports to key markets in the region were particularly affected in March, when shipments dropped as much as 50.7 percent following supply chain disruptions linked to the partial closure of the Strait of Hormuz.
Among major destinations, exports to the United Arab Emirates and Saudi Arabia fell steeply by 67 percent and 45 percent, respectively, during the month.
Despite these setbacks, several major markets posted growth during FY26, including Germany, the United Kingdom, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.
On a regional basis, engineering exports to North America rose 1.9 percent, while shipments to the European Union increased by 8.6 percent during the fiscal year.
In contrast, exports to the WANA region declined 8 percent for the full year. Shipments to Other Europe and the Commonwealth of Independent States (CIS) also fell by 4.5 percent and 5.9 percent, respectively.
Engineering exports in March 2026 rose marginally by 1.13 percent year over year to $10.94 billion, despite supply disruptions caused by escalating tensions in West Asia.
EEPC India Chairman Pankaj Chadha said the sector demonstrated resilience by achieving record exports for the second consecutive year amid global uncertainty.
“The export growth came at a time when global trade faced severe disruptions due to geopolitical tensions in West Asia, which impacted key shipping routes. Despite these pressures, India’s engineering exports remained positive across major regions, except WANA,” Chadha said.
He added that sustaining growth will depend on diversifying markets, strengthening sectoral resilience, and implementing targeted policy support.
Chadha also noted that the government’s Resilience and Logistics Intervention for Export Facilitation (RELIEF) Scheme helped maintain trade continuity by addressing rising logistics and insurance costs during the crisis.
According to government estimates, engineering goods remained the largest component of India’s merchandise exports in FY26, accounting for 27.71 percent of the total. (Source: IANS)
