Engineering goods exports posted a 24.48 per cent rise in May 2026 (year-on-year) to a record $12.31 billion, the highest-ever monthly exports for the sector, despite the conflict in West Asia disrupting trade routes, according to an analysis by EEPC India.

Exports to the West Asia-North Africa (WANA) region jumped 44.3 per cent in May to $2.06 billion, indicating resilient demand even as the region remained affected by geopolitical tensions.

Engineering products accounted for 27.2 per cent of India’s total merchandise exports during the month, as per the government’s quick estimates.

The record performance was led by exports of electrical machinery and equipment, ships and floating structures, motor vehicles and iron and steel and their products. As many as 28 of the 34 engineering product panels registered export growth during the month.

The strong performance comes amid continuing uncertainty in global trade due to geopolitical tensions, supply chain disruptions and protectionist policies in several major economies.

Region-wise, North America, WANA and the European Union remained the largest markets for Indian engineering products in May, accounting for 19.3 per cent, 16.7 per cent and 15.2 per cent, respectively, of total engineering exports.

Despite the ongoing conflict in West Asia, engineering exports to WANA rose 44.3 per cent in May and were up 14.1 per cent during April-May 2026.

Country-wise, exports to India’s five largest engineering markets—the US, UAE, UK, Germany and Saudi Arabia—recorded growth during the first two months of FY27. The US remained the largest destination, with engineering exports worth $3.64 billion during April-May, up 7 per cent from a year earlier.

Cumulatively, engineering exports during April-May FY27 rose 16.8 per cent year-on-year to $22.66 billion, compared with $19.41 billion in the corresponding period of the previous fiscal.

Global supply chain diversification away from excessive dependence on China was creating fresh opportunities for Indian engineering exporters, pointed out EEPC India Chairman Pankaj Chadha.  Faster policy support, affordable trade finance and stronger risk protection would be needed for the industry to fully capitalise on the opportunity, he added.

“Overall, India’s engineering export story is one of cautious optimism. We are positive that with proper guidance of the government, we will be able to achieve the desired export target of $ 250 billion by 2030,” Chadha said.

Published on June 26, 2026