Despite the widespread geopolitical uncertainties in West Asia and the global trade route disruptions, India's engineering goods exports grew 24.48% year-on-year to a record $12.31 billion in May 2026. The performance on the positive side reflects the strength of India's manufacturing industry and the demand for engineering products in the world.
Engineering products recorded export value share of 27.2% in the month, which signifies that the industry contributes one of the highest share of India's export basket, according to EEPC India.
Key Highlights
- India's engineering exports reached a record $12.31 billion in May, rising 24.48% year-on-year despite global challenges.
- Strong machinery, vehicle and steel shipments boosted exports, supporting India's $250 billion engineering export vision by 2030.
Electrical Machinery, Vehicles and Steel Drive Growth
The record-breaking performance was led by strong shipments of electrical machinery and equipment, motor vehicles, ships and floating structures, iron and steel, and steel products. Out of 34 engineering product categories, 28 engineering product categories showed positive export growth in May, representing a broad-based growth across the sector.
West Asia Demand Remains Resilient
Despite ongoing geopolitical tensions, exports to the West Asia and North Africa (WANA) region jumped 44.3% year-on-year to $2.06 billion in May. Sustained demand for engineering exports was also observed during April-May FY27 as they rose by 14.1%.
North America remained India's largest engineering export market, accounting for 19.3% of total exports, followed by WANA at 16.7% and the European Union at 15.2%. The United States continued to be the biggest individual destination, with engineering exports worth $3.64 billion during April-May, up 7% from a year earlier.
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Engineering Exports Gain Momentum in FY27
During the first two months of FY27, India's engineering exports rose 16.8% to $22.66 billion, compared with $19.41 billion in the corresponding period last year.
Commenting on the outlook, EEPC India Chairman Pankaj Chadha said, "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."
He added that as global companies diversify supply chains beyond China, Indian engineering exporters have an opportunity to expand their global presence, provided they receive timely policy support, affordable trade finance, and stronger risk protection.
