India’s engineering goods exports soared to an unprecedented $122.43 billion in the fiscal year 2025–26, marking a 5% increase over the previous year’s $116.75 billion, as confirmed by industry body EEPC India. This achievement underscores the sector’s resilience in the face of significant external challenges.
Despite facing geopolitical tensions, supply chain disruptions from the West Asia conflict, and changing trade policies during the Trump administration, the engineering sector managed to break records through market diversification, introducing new product lines, and leveraging free trade agreements. Even amidst disruptions in key sea routes due to the West Asia conflict in March 2026, engineering exports saw a slight 1.1% growth, reaching $10.94 billion.
EEPC India Chairman Pankaj Chadha credited the sector’s outstanding performance to proactive industry measures and timely policy backing. By exploring new opportunities, diversifying products, and capitalizing on free trade agreements, the engineering community successfully adapted to the evolving trade landscape.
Looking forward, EEPC India maintains a cautious optimism regarding export growth projections for the fiscal year 2026–27. While the West Asia conflict continues to disrupt supply chains and escalate energy prices, the organization anticipates a rebound in engineering exports once geopolitical tensions ease and conflicts subside, although global uncertainties and inflationary pressures necessitate a prudent approach.
