India’s engineering goods exports saw significant growth in February 2026, exceeding $10 billion despite global challenges. The sector achieved a 12.9% year-on-year increase, reaching $10.36 billion, with exports to 17 out of 25 key markets rising during the month, as reported by EPC India. Notably, while shipments to the US and UAE decreased, exports to countries like China, Saudi Arabia, the UK, Singapore, and the Republic of Korea showed positive trends.
Engineering goods exports to China notably doubled to $436.18 million in February 2026 from $207.45 million in the same period last year. On the other hand, the US market experienced a 4.9% decline in shipments to $1.57 billion, and the UAE, the second-largest market, saw a 14% year-on-year drop.
Pankaj Chadha, Chairman of EEPC India, described the February performance as a positive development for the engineering sector amidst global trade challenges. He highlighted exporters’ struggles with increased financial burdens, including high freight costs, insurance premiums, and energy prices. The share of engineering goods in total merchandise exports stood at 28.3% in February 2026, slightly lower than the previous month’s 28.5%, according to government data.
Chadha also commended the government’s swift action in introducing the Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme to support exporters affected by the West Asian conflict. Prime Minister Narendra Modi has acknowledged the potential economic impact of the crisis in West Asia, emphasizing its significance not only for India but also for the global economy.
