India’s engineering exports top $11 billion in June: What’s behind the strong growth?

The sector’s performance provides a cushion to India’s broader merchandise exports, which face mounting pressure from geopolitical tensions and disruptions to international trade routes.

Engineering exports jump 18% in April-June quarter

Engineering goods exports rose 18.09% year-on-year to $34.14 billion during the April-June quarter of fiscal 2026-27, compared with $28.91 billion during the corresponding period last year, Reuters reported citing the EEPC India data. It also reported that engineering goods account for more than a quarter of India’s total merchandise exports, making the sector an important contributor to the country’s overall export performance.

In June alone, engineering products accounted for 28.4% of India’s total merchandise exports.

China emerges as a major growth driver

China was one of the biggest contributors to the June growth. India’s engineering exports to China rose 74% year-on-year to $361.47 million, the Reuters’ report further stated.

The surge comes against the backdrop of a broader improvement in India’s exports to China. India’s total exports to the country rose by nearly 37% in the financial year ended March, reaching around $20 billion. The rise in engineering shipments shows rising demand for Indian industrial and manufactured goods in the Chinese market.

US remains India’s biggest engineering export market

The United States continued to be the largest destination for India’s engineering goods in June. Exports to the US stood at $1.95 billion during the month, highlighting the continued importance of the American market for Indian engineering exporters.

The US remains a key destination for Indian machinery, industrial products, auto components, metals and other engineering goods.

Oman exports more than quadruple

Oman recorded one of the sharpest increases in imports of Indian engineering goods. Exports to the country rose more than fourfold to nearly $259 million, according to Reuters.

The sharp rise helped offset declines in exports to some other major West Asian markets, including the United Arab Emirates and Saudi Arabia. EEPC India said the increase in shipments to Oman helped keep engineering exports to the wider West Asia and North Africa region in positive territory despite geopolitical uncertainty.

How shipping disruptions are affecting exporters

The strong export growth comes despite disruptions to important global shipping routes. The Red Sea crisis has affected shipping movements, while tensions around the Strait of Hormuz have raised concerns over freight costs, insurance premiums and transit times.

Exporters have warned that these disruptions could increase the cost of moving goods and put pressure on profit margins. However, the engineering sector has so far managed to maintain its momentum.

“Engineering goods exports in the last three months of the current fiscal have stayed above $10 billion,” EEPC India Chairman Pankaj Chadha said, according to Reuters. He added that continued government support would be needed to sustain growth as new risks emerge.

27 of 34 engineering categories record growth

The growth was broad-based, with 27 of the 34 engineering product categories recording year-on-year growth in June. However, exports declined in some categories, including lead and lead products, internal-combustion engines, cranes, lifts and office equipment.

Exports rise across regions

It is reported that India recorded growth in engineering exports across all major regions in June, although shipments to the UAE and Saudi Arabia declined. Exports to Turkey also increased, reversing a significant fall recorded the previous year.