Engg Exporters Demand Faster Policy Relief as Sector Occupies a Quarter of Indian Exports

Ø Engineering Goods Exports Top US$12.31 Billion In May, Highest Ever Monthly Exports Despite West Asia Conflict

· Record exports: India's engineering goods exports reached an all-time high of US$12.31 billion in May 2026, the first time exports have crossed US$12 billion in the month of May.

· Strong annual growth: Exports increased 24.48% year-on-year, from US$9.89 billion in May 2025 to US$12.31 billion in May 2026.

· Share in total exports: Engineering products accounted for 27.2% of India's total merchandise exports in May 2026, according to Government Quick Estimates.

· Key export drivers: Growth was led by:

o Electric machinery and equipment

o Ships, boats and floating structures

o Motor vehicles/cars

o Iron and steel and related products

· Broad-based performance: 28 out of 34 engineering product panels registered export growth during May 2026.

· EEPC India's outlook: Chairman Pankaj Chadha expressed confidence that, with continued government support, India can achieve the engineering export target of US$250 billion by 2030.

· Global opportunity: Supply chain diversification by global companies seeking alternatives to overdependence on China is creating new opportunities for Indian engineering exporters.

· Support sought from Government: EEPC India emphasized the need for:

o Faster policy support

o Affordable trade finance

o Stronger export risk protection

o Improved scale, quality, logistics and compliance with international standards.

· Diversification strategy: Indian exporters are expanding both product range and export markets, helping them withstand geopolitical tensions, supply chain shifts and protectionist trade policies.

· Global challenges remain: Engineering exports have grown despite:

o West Asia conflict

o Trade disruptions

o Weak global manufacturing demand

o High borrowing costs

o Inflation and trade fragmentation.

· FY27 performance: Engineering exports during April–May FY2026-27 reached US$22.66 billion, compared with US$19.41 billion in the same period last year, registering 16.8% growth.

· Top export regions (May 2026):

o North America: 19.3%

o West Asia & North Africa (WANA): 16.7%

o European Union: 15.2%

· Strong WANA growth: Despite geopolitical tensions, engineering exports to WANA grew:

o 44.3% in May 2026.

o 14.1% during April–May 2026.

· Top export destinations: Exports to the USA, UAE, UK, Germany and Saudi Arabia all recorded healthy growth during the first two months of FY2026-27.

· USA remained the largest market: Engineering exports to the United States stood at US$3.64 billion during April–May FY2026-27, registering 7% year-on-year growth.

[ABS News Service/26.06.2026]

We are positive that with the proper guidance of the Government, we will be able to achieve the desired export target of US$ 250 billion by 2030: EEPC India Chairman

National, June 26: Engineering goods exports from India crossed US$ 12 billion in May 2026, for the first time ever, in the month of May 2026 despite West Asia conflict and trade disruptions caused by it.

The total value of engineering shipments in May 2026 stood at US$ 12.31 billion, up from US$ 9.89 billion in the same month last year, representing year-on-year growth of 24.48%.

As per the Quick Estimates of the Government of India, the share of engineering in India’s total engineering exports stood at 27.2% in May 2026.

The record-high exports in May 2026 were mainly led by electric machinery and equipment; ships, boats, and floating structures; motor vehicles/cars; and iron and steel and its products, among others. As many as 28 of 34 engineering panels recorded higher exports in May 2026.

Commenting on the engineering exports data, Mr. Pankaj Chadha, Chairman, EEPC India, said that the sector's growth trajectory demonstrates its resilience and growing competitiveness in the global market.

Mr. Chadha noted that as global companies are reworking their supply chains to reduce overreliance on a single country, especially China, new opportunities are emerging for Indian engineering firms.

"For Indian engineering exporters to tap this opportunity, they need to improve scale, quality, logistics, and compliance with destination-country standards. The support of the Ministry of Commerce and Industry in terms of faster policy relief, cheaper trade finance, and stronger risk protection would also be of utmost importance in this regard," he said.

"Overall, India’s engineering export story is one of cautious optimism. We are positive that with the proper guidance of the Government, we will be able to achieve the desired export target of US$ 250 billion by 2030," the EEPC India chairman stated.

Indian engineering exporters have been diversifying both their products and markets to expand their presence and de-risk exposure to dominant markets. This strategy has helped them grow despite geopolitical uncertainty, supply chain realignment, and protectionist trade policies in several major markets.

It may be noted that the global economy is still being shaped by uneven recovery, high borrowing costs in some economies, and fragile manufacturing demand. The broader global trade environment remains mixed. Many economies are still managing inflation, weak consumer demand, and trade fragmentation.

The performance of the Indian engineering sector has been remarkable in recent years, reaching an all-time high in the last two completed fiscal years, and the momentum has continued into the new fiscal year 2026-27.

On a cumulative basis, engineering exports during the first two months of FY27 were recorded at US$ 22.66 billion, as against US$ 19.41 billion during the same period last fiscal, reflecting a growth of 16.8%.

Region-wise analysis showed that North America, West Asia, and North Africa (WANA), and the European Union were the top consumers of Indian engineering products, accounting for 19.3%, 16.7%, and 15.2%, respectively, of India’s global engineering exports in May 2026.

Even during the geopolitical crisis in West Asia, engineering exports to WANA increased by 44.3% in May 2026 and by 14.1% during Apr-May 2026.

Country-wise analysis showed that exports to all top five destinations of Indian engineering exports, namely the USA, UAE, UK, Germany, and Saudi Arabia, recorded decent to high growth during the first two months of fiscal 2026-27.

The USA remained the top destination for Indian engineering exports in April-May 2026-27, with exports of 3.64 billion, up 7% year-on-year.