Engineering Goods Exports from India Jump 21 percent as China-Bound Shipments Soar 74 percent

India's engineering goods exports recorded a robust 21% year-on-year increase in June, reaching $11.48 billion, driven by healthy demand from key markets such as China, the United States, Germany and Oman, according to the Engineering Export Promotion Council (EEPC) India. The strong performance comes despite ongoing concerns over shipping disruptions in the Red Sea and Strait of Hormuz, which have increased logistics costs and affected global trade routes.

Among the standout markets, exports to China surged 74% compared to the same month last year, rising to $361.47 million. India's total exports to China also grew by nearly 37% during the financial year ending March, touching around $20 billion, reflecting strengthening trade ties in several engineering segments. The continued growth in engineering shipments has helped cushion India's overall merchandise exports at a time when exporters are facing rising freight charges, higher insurance premiums and longer transit times due to geopolitical tensions affecting major maritime corridors.

During the April-June quarter of FY2026-27, engineering exports reached $34.14 billion, marking an 18.09% increase over $28.91 billion recorded in the corresponding period last year. The sector contributes more than one-fourth of India's total merchandise exports, making it one of the country's most important export industries.

The United States remained India's largest destination for engineering products in June, with exports valued at $1.95 billion. Meanwhile, exports to Oman expanded more than fourfold, reaching nearly $259 million, highlighting growing demand from West Asian markets. Government estimates cited by EEPC India show that engineering goods accounted for 28.4% of India's total merchandise exports during June, underlining the sector's significant contribution to the country's export performance.

EEPC India Chairman Pankaj Chadha said the engineering sector has demonstrated resilience despite disruptions caused by the ongoing crisis in West Asia and the Middle East. He noted that engineering exports have consistently remained above $10 billion per month during the first three months of the current financial year, while stressing that continued policy support from the government would be important to sustain this momentum amid evolving global risks. Export growth was recorded across most regions in June, although shipments to the United Arab Emirates and Saudi Arabia declined. However, the sharp rise in exports to Oman helped ensure that overall engineering exports to the West Asia and North Africa (WANA) region remained in positive territory. India also registered a recovery in exports to Turkey, reversing the decline witnessed last year.

The export expansion was broad-based, with 27 out of 34 engineering product categories posting year-on-year growth in June. However, a few segments—including lead and lead products, internal combustion engines, cranes and lifts, and office equipment—recorded lower exports compared to the previous year. The sector's strong performance reflects resilient global demand for Indian engineering products despite challenging international trade conditions.