Engineering Exports Power Ahead With 21% Surge in June Despite Maritime Disruptions

• Engineering exports climbed 21% year-on-year to $11.48 billion in June.

• April–June shipments rose 18.09% to $34.14 billion.

• Sector contributed 28.4% of total merchandise exports in June.

• China (+74%), US ($1.95B) and Oman (quadrupled to $259M) led growth.

India’s engineering exports posted a strong performance in June, expanding 21 percent from a year earlier to reach $11.48 billion. The growth comes even as exporters navigated logistical challenges stemming from disruptions in the Red Sea and the Strait of Hormuz, according to a Reuters report citing EEPC India, the apex body representing engineering exporters.

The surge is particularly significant at a time when India’s broader merchandise trade is facing mounting cost pressures. Higher freight rates, elevated insurance premiums and longer transit times—triggered by instability in key shipping corridors—have weighed on overall exports. Industry representatives noted that the robust showing by engineering goods has helped cushion the impact on total outbound trade.

Three Straight Months Above $10 Billion

Engineering exports have now remained above the $10 billion mark for three consecutive months, reflecting sustained global demand. During the first quarter of fiscal year 2026–27 (April to June), shipments of engineering products rose 18.09 percent year-on-year to $34.14 billion, up from $28.91 billion in the same period last year.

The sector continues to play a central role in India’s trade profile. As per official quick estimates referenced by EEPC India, engineering goods accounted for 28.4 percent of the country’s total merchandise exports in June alone—more than a quarter of overall outbound shipments.

EEPC India Chairman Pankaj Chadha said the industry has demonstrated resilience despite supply-chain disruptions linked to geopolitical tensions in West Asia and the Middle East. He added that continued policy backing from the government would be essential to sustain momentum amid emerging global uncertainties.

China, US and Oman Anchor Growth

Among major markets, China recorded the sharpest increase in June, with imports of Indian engineering goods jumping 74 percent year-on-year to $361.47 million. India’s overall exports to China also expanded significantly in the fiscal year ended March, rising nearly 37 percent to around $20 billion.

The United States retained its position as the largest destination for Indian engineering products, with shipments valued at $1.95 billion during the month. Meanwhile, exports to Oman more than quadrupled to approximately $259 million, providing a substantial boost to trade with the West Asia and North Africa region.

Although exports to the United Arab Emirates and Saudi Arabia declined, the sharp rise in shipments to Oman ensured that the broader regional tally remained positive. India also registered renewed growth in exports to Turkey, reversing a steep contraction seen last year.

Broad-Based Expansion Across Product Categories

The growth momentum was widely distributed across product segments. Of the 34 engineering categories tracked, 27 recorded year-on-year gains in June. However, certain segments—including lead and lead products, internal combustion engines, cranes and lifts, as well as office equipment—saw a decline.

Overall, the sector’s strong June performance highlights its importance as a stabilizing force in India’s export landscape. Despite maritime bottlenecks and global headwinds, engineering goods continue to anchor trade growth, underlining both diversified demand and the sector’s adaptability in a volatile global environment.