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India’s Engineering Exports Rise 18%, US Remains Top Market
India sold more engineering goods to other countries in July 2026.
These sales were worth $12.24 billion, which was 18% more than in July last year.
The United States bought the most Indian engineering goods.
China also increased its purchases from India.
Most engineering product groups grew, but seven groups became smaller.
Sales to Saudi Arabia fell partly because regional conflict and shipping problems disrupted projects and trade.
Industry officials said higher energy and transport costs could make exporting harder.
They also said better technology, stronger businesses and government support could help exports keep growing.
India’s engineering exports rose 18% year-on-year to $12.24 billion in July 2026, exceeding overall merchandise export growth.
Engineering shipments stayed above $10 billion in each of the first four months of FY27, reaching $46.38 billion during April-July.
The United States remained the largest market, with July imports of $2.18 billion and April-July imports of $7.78 billion.
Exports to China increased 32% year-on-year to $349 million in July, while Germany, the UK and Singapore also recorded growth.
Twenty-seven of 34 engineering categories grew in July, but industry officials warned that costs, trade barriers and geopolitical disruptions could weigh on future exports.
- Who
- Indian engineering exporters, represented by EEPC India, and overseas buyers, particularly in the United States.
- What
- India’s engineering exports increased 18% year-on-year to $12.24 billion in July 2026.
- Where
- International markets; the United States was the largest destination, while Saudi Arabia faced declines.
- When
- July 2026, with cumulative figures covering April-July of FY27.
- Why
- Demand increased across most markets and product categories, although geopolitical disruptions, logistics problems and rising trade costs created challenges.
Export Growth and Competitiveness
Costs and Market Risks
Current momentum
Export Growth and Competitiveness
Engineering exports exceeded $10 billion in each of the first four months of FY27, with growth in 27 of 34 product categories and strong performance in the United States and China.
Costs and Market Risks
EEPC India chairman Pankaj Chadha said sustaining this momentum could become more difficult because of higher energy and shipping costs, geopolitical tensions and protectionist measures.
Access to overseas markets
Export Growth and Competitiveness
Greater competitiveness, production scale, technological upgrading, compliance capacity and market diversification could support continued export growth.
Costs and Market Risks
Technical regulations, health and safety requirements, certification procedures and other non-tariff measures could increase market-access costs, particularly for exporters in developing economies.
Regional demand
Export Growth and Competitiveness
Exports to the United States and China grew strongly, while Germany, the UK and Singapore also recorded moderate to high growth during April-July.
Costs and Market Risks
Shipments to Saudi Arabia declined as logistics problems around the Strait of Hormuz and conflict-affected projects weakened purchasing activity.
Key facts
- July exports
- $12.24 billion, up 18% year-on-year from $10.40 billion in July 2025
- Merchandise export share
- Engineering goods represented 27.7% of India’s merchandise exports in July 2026
- April-July exports
- $46.38 billion, compared with $39.24 billion a year earlier; growth was 18.21%
- United States
- Received $2.18 billion in July, up 20%, and $7.78 billion during April-July, up 11.8%
- China
- Received $349 million in July, up 32% year-on-year
- Product categories
- Twenty-seven of 34 engineering categories grew in July, while seven declined
- Main risks
- Higher energy and shipping costs, geopolitical tensions, protectionist measures and stricter technical requirements
Quotes
Pankaj Chadha
Chairman of EEPC India
“Engineering exports have remained above $10 billion in the first four months of FY27 but challenges remain ahead. Higher energy and shipping costs, geopolitical tensions, protectionist measures and increasingly stringent technical and regulatory requirements could raise the cost of market access.”
livemint.com
“In these challenging times, it is important for Indian engineering exporters to sustain the present momentum, which can be achieved with greater competitiveness, scale, technological upgrading, compliance capacity, and market diversification.”
livemint.com
Sources
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