India’s Engineering Exports to U.S. Rise to Nearly $20 Billion Despite Trade Pressures
NEW DELHI — India’s engineering exports to the United States grew 2.3 percent year over year to $19.60 billion in fiscal year 2026, retaining the U.S. as the sector’s top destination despite higher tariffs, according to industry data released Thursday.
Figures compiled by the Engineering Export Promotion Council (EEPC) India showed overall engineering exports reached a record $122.43 billion in FY26, up nearly 5 percent from $116.75 billion in the previous fiscal year.
The gains came even as shipments to the West Asia and North Africa region declined sharply amid geopolitical disruptions. Exports to key markets in the region were particularly affected in March, when shipments fell as much as 50.7 percent due to supply chain disruptions linked to the closure of the Strait of Hormuz.
Exports to the United Arab Emirates and Saudi Arabia dropped steeply during the month, falling 67 percent and 45 percent, respectively.
Despite those setbacks, several major markets posted growth over the full fiscal year, including Germany, the United Kingdom, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.
Regionally, engineering exports to North America rose 1.9 percent, while shipments to the European Union increased 8.6 percent in FY26. In contrast, exports to West Asia and North Africa declined 8 percent for the year, while shipments to Other Europe and the Commonwealth of Independent States fell 4.5 percent and 5.9 percent, respectively.
Engineering exports in March 2026 rose modestly by 1.13 percent year over year to $10.94 billion, despite ongoing supply disruptions tied to tensions in West Asia.
EEPC India Chairman Pankaj Chadha said the sector showed resilience by achieving record exports for a second consecutive year despite challenging global conditions.
“The export growth came at a time when global trade faced severe disruptions due to geopolitical tensions in West Asia, which impacted key shipping routes. Despite these pressures, India’s engineering exports remained positive across major regions, except WANA,” Chadha said.
He added that sustaining growth would depend on diversifying markets, strengthening sector resilience, and targeted policy support.
Chadha also pointed to the government’s Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme, which aims to offset rising logistics and insurance costs during the crisis, as a factor in maintaining trade continuity.
According to government estimates, engineering goods remained the largest component of India’s merchandise exports in FY26, accounting for 27.71 percent of the total. (Source: IANS)
