Engineering goods exports from India reached $101.13 billion during April-January 2025-26, marking a 4.52% increase year-on-year. Notably, this is the first time they have crossed the $100 billion milestone in the current fiscal year. The growth was mainly driven by copper, iron and steel, and motor vehicles, with a 10.4% rise in January alone to $10.40 billion, despite a decline in exports to the US.
Indian engineering exports to the US, the country’s primary market, dropped by 6.8% year-on-year to $1.51 billion in January, down from $1.62 billion in January 2025. Pankaj Chadha, Chairman of EEPC India, attributed the double-digit growth in January to a favorable base. He expressed optimism as Indian engineering exports rebounded in various regions amid global trade realignments due to changing geopolitics.
Chadha further projected that Indian engineering exports would continue to expand and exceed $120 billion in FY26. He highlighted the significance of government schemes like the Market Access Scheme in facilitating Indian exports, especially as more exporters aim to engage in global exhibitions. EEPC India also called on the government to reconsider halving RoDTEP benefits, citing external challenges and uncertainties.
Among the top 25 markets for Indian engineering goods, exports to 19 countries saw positive growth, while six countries experienced negative growth. Notably, exports to key markets such as the UAE, Saudi Arabia, Germany, the UK, Singapore, and China showed substantial growth. For instance, engineering goods exports to the UAE surged by 42.4% in January 2026 to $871.48 million, and exports to Saudi Arabia rose by 33.3% to $518.58 million.
In terms of regions, North America and the European Union (EU) emerged as the top two exporting regions for Indian engineering goods in January 2026.
