New Delhi: India’s engineering goods exports continued their strong growth momentum in July 2026, rising 18 per cent year-on-year to $12.24 billion despite geopolitical uncertainties and disruptions along key trade routes in West Asia, according to data released by EEPC India on Wednesday.
Engineering exports stood at $10.40 billion in July 2025. The sector’s growth during the month also outpaced the 17 per cent year-on-year increase recorded in India’s overall merchandise exports.
Engineering goods accounted for 27.7 per cent of the country’s total merchandise exports in July 2026, according to the government’s quick estimates.
The latest figures extend the sector’s strong performance into the first four months of the financial year 2026-27, with monthly engineering exports remaining above the $10 billion mark.
Cumulatively, engineering exports during April-July 2026-27 reached $46.38 billion, compared with $39.24 billion during the corresponding period of the previous fiscal, registering a growth of 18.21 per cent.
Engineering products accounted for 26.7 per cent of India’s total merchandise exports during the period.
The United States continued to be the largest destination for Indian engineering goods. Engineering exports to the US increased 20 per cent year-on-year in July to $2.18 billion.
During April-July, exports to the US stood at $7.78 billion, registering year-on-year growth of 11.8 per cent.
India also recorded strong growth in engineering exports to China, with shipments rising 32 per cent year-on-year to $349 million in July.
During the April-July period, engineering exports to other major markets, including Germany, the UK and Singapore, also recorded decent to high growth.
However, exports to some destinations faced pressure due to geopolitical and logistical challenges. Engineering shipments to Saudi Arabia declined during the period, with the logistics crisis in and around the Strait of Hormuz affecting trade flows.
According to EEPC India, the impact has been compounded by weaker purchasing activity in Saudi Arabia, where a significant portion of engineering imports is linked to projects that have been affected by the ongoing regional conflict.
The broad-based nature of the export recovery was reflected in the performance of individual engineering product segments. In July, 27 of the 34 engineering panels recorded year-on-year growth.
Seven panels, including iron and steel products, lead and its products, machine tools, aircraft and spacecraft and their parts, cranes, lifts and winches, and office equipment, registered declines.
(IANS)
