New Delhi: India's engineering goods exports continued their strong growth momentum in July 2026 despite geopolitical uncertainties along major trade routes in West Asia. Total engineering shipments in July 2026 grew by an impressive 18% year-on-year to US$ 12.24 billion, up from US$ 10.40 billion in July 2025.
Notably, engineering exports in July grew faster than India’s overall merchandise exports, which increased by 17% during the same period. As per the Government's quick estimates, engineering exports accounted for 27.7% of India's total merchandise exports in July 2026.
Among key destinations, engineering exports grew to almost all countries, barring a few including Saudi Arabia, Thailand and Turkey.
In Saudi Arabia, the logistics crisis in and around the Strait of Hormuz has significantly affected India’s exports. Most of Saudi Arabia’s engineering imports are project-linked, and the ongoing conflict in the region has affected some projects, weakening its purchasing activity.
During July 2026, engineering shipments to the US grew 20% YoY to US$ 2.18 billion. Engineering exports to China rose 32% YoY to US$ 349 million.
Panel-wise, as many as 27 out of 34 engineering panels witnessed positive YoY growth in July 2026. Seven panels including products of iron and steel, lead and products, machine tools, aircraft, spacecraft and parts, cranes, lifts and winches, and office equipment, witnessed a decline.
On a cumulative basis, engineering exports during April-July 2026-27 stood at US$ 46.38 billion, up from US$ 39.24 billion in the same period last fiscal, registering growth of 18.21%. Engineering goods accounted for 26.7% of total merchandise exports during the period.
The US remained the top destination in April-July 2026-27 with exports of US$ 7.78 billion, recording a solid YoY growth of 11.8%. Exports to Germany, UK and Singapore also recorded decent to high growth, while shipments to Saudi Arabia dropped YoY.
Pankaj Chadha, Chairman, EEPC India said, in a statement, “Engineering exports have remained above US$ 10 billion in the first four months of FY27 but challenges remain ahead. Higher energy and shipping costs, geopolitical tensions, protectionist measures and increasingly stringent technical and regulatory requirements could raise the cost of market access.”
He added that the global trade body UNCTAD had earlier stated that non-tariff measures such as technical regulations, health and safety requirements and certification procedures remain a major source of trade costs, particularly for developing economies. "In these challenging times, it is important for Indian engineering exporters to sustain the present momentum, which can be achieved with greater competitiveness, scale, technological upgrading, compliance capacity and market diversification. The initiative has to be taken by the industry, but support from the Government of India will also play a significant role to ensure that export growth remains sustainable.”
