India’s engineering exports to the United States increased by 2.3% year-on-year to $19.60 billion in FY26, maintaining its top position as a destination despite higher tariffs. Data from the Engineering Export Promotion Council (EEPC) India revealed that overall engineering exports reached a record high of $122.43 billion in FY26, marking a nearly 5% rise from the previous fiscal year.
Shipments to the West Asia and North Africa (WANA) region experienced a significant decline due to geopolitical disruptions. In March, exports to key WANA markets dropped by as much as 50.7% following supply chain disruptions caused by the closure of the Strait of Hormuz.
Despite challenges in the WANA region, major markets like Germany, the UK, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia saw positive growth in engineering exports during FY26. Notably, exports to North America rose by 1.9%, while shipments to the European Union increased by 8.6% in the fiscal year.
Engineering exports in March 2026 rose slightly by 1.13% year-on-year to $10.94 billion, despite supply disruptions linked to geopolitical tensions in West Asia. EEPC India Chairman Pankaj Chadha highlighted the sector’s resilience, achieving record exports for the second consecutive year amidst global challenges.
“The export growth occurred amid severe disruptions in global trade due to geopolitical tensions in West Asia, affecting key shipping routes. Despite these challenges, India’s engineering exports remained positive across major regions, except WANA,” Chadha stated. He emphasized the importance of market diversification, sectoral resilience, and targeted policy support for sustaining growth.
