The country's engineering exports plunged 66.8 per cent to the UAE and 45 per cent to Saudi Arabia in March due to the West Asia crisis, which has impacted cargo ships movement in international waters, according to the EEPC data.
Exports to the UAE fell to USD 237.4 million in March from USD 714.8 million in the same period of the previous year. Saudi Arabia exports declined to USD 247.7 million in the previous month from USD 450.5 million in March 2025, the data showed.
Despite the hit in key West Asian markets, the overall engineering sector exports during March were up 1.13 per cent to USD 10.94 billion. During 2025-26, engineering sector exports were up 4.86 per cent to USD 122.43 billion, the highest so far. The target is to take it to USD 250 billion by 2030.
It said among the top export destination countries, exports to second-largest UAE and fourth-largest Saudi Arabia slumped 10 per cent and 13 per cent, while exports to the USA as the largest consumer increased 2 per cent in 2025-26.
The share of the sector in the country's total merchandise exports in 2025-26 was 27.71 per cent. The share in March 2026 is even better at 28.11 per cent.
"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," it said.
It added that record high exports of Indian engineering in the last fiscal year was led by high exports of motor vehicles/cars, copper and its products, iron and steel, electric machinery and equipment, two- and three-wheelers, products of iron and steel, industrial machinery, other construction machinery, and auto components/parts among others.
Among the major exported product groups, 'aircraft spacecraft and parts', 'medical and scientific instruments' and 'ships, boats and floating structures' conceded decline in exports during the 2025-26 fiscal year.
The US remained the biggest market for Indian engineering exports despite the additional tariff pressures, which were as high as 50 per cent. The shipments rose 2.3 per cent to USD 19.6 billion.
Exports to Germany were up 14.6 per cent to USD 4.96 billion, and to the UK it increased 18.2 per cent to USD 4.74 billion. To China, exports increased 32.4 per cent to USD 3.53 billion and Korea 16.7 per cent to USD 3.03 billion.
Published on April 24, 2026