India’s engineering goods exports climbed 21% year-on-year to $11.48 billion in June, driven by stronger demand from China, the United States, Germany and Oman, engineering exporters’ body EEPC India said on Monday, despite concerns over shipping disruptions in the Red Sea and the Strait of Hormuz.
Exports to China surged 74% from a year earlier to $361.47 million in June. Overall, India’s exports to China rose nearly 37% in the fiscal year ended March, reaching around $20 billion.
The growth in engineering exports provides a buffer for India’s broader merchandise trade, which faces mounting pressure from higher freight, insurance and transit costs after disruptions in the Red Sea and Strait of Hormuz affected shipping routes, exporters said.
For April-June, the first quarter of fiscal 2026/27, engineering exports, which account for more than a quarter of India’s total merchandise exports, increased 18.09% to $34.14 billion from $28.91 billion a year earlier.
US, Oman Drive Demand
The United States remained the largest market for Indian engineering goods, with exports worth $1.95 billion during the month, while exports to Oman more than quadrupled to nearly $259 million.
Engineering products accounted for 28.4% of India’s total merchandise exports in June, according to government quick estimates cited by EEPC India.
Sector Holds Firm
The sector has remained resilient despite disruptions to trade flows arising from the crisis in West Asia and the Middle East, EEPC India Chairman Pankaj Chadha said.
“Engineering goods exports in the last three months of the current fiscal have stayed above $10 billion,” Chadha said, adding that continued government support would be needed to maintain growth amid emerging risks.
Exports rose across all regions in June, although shipments to the United Arab Emirates and Saudi Arabia declined. A sharp increase in exports to Oman helped keep engineering exports to the West Asia and North Africa region in positive territory, EEPC India said.
India also recorded export growth to Turkey, reversing a significant decline last year.
Twenty-seven of 34 engineering product categories registered year-on-year growth in June, while there were declines in lead and lead products, internal-combustion engines, cranes, lifts and office equipment, the EEPC said.
(With inputs from Reuters)
