New Delhi, Aug 27: India’s engineering export sector continued to show resilience in July, with shipments rising 18 per cent year-on-year to $12.24 billion, despite geopolitical uncertainty and disruptions affecting important international trade routes.
The latest figures released by EEPC India showed a significant improvement over the $10.40 billion recorded in July 2025. Engineering exports also grew faster than India’s overall merchandise exports, which registered a 17 per cent year-on-year increase during the month.
Engineering goods accounted for 27.7 per cent of the country’s total merchandise exports in July, highlighting the sector’s significant contribution to India’s external trade.
The positive trend has extended into the first four months of the 2026-27 financial year. Engineering exports remained above the $10-billion mark in each month from April through July, taking cumulative shipments to $46.38 billion, compared with $39.24 billion during the same period of the previous fiscal year.
The cumulative growth stood at 18.21 per cent, while engineering products contributed 26.7 per cent of India’s overall merchandise exports during the April-July period.
The US continued to be the biggest market for Indian engineering goods. Exports to the American market increased 20 per cent year-on-year in July to $2.18 billion. Between April and July, engineering shipments to the US totalled $7.78 billion, registering an 11.8 per cent increase from a year earlier.
India also witnessed strong demand from China, where engineering exports climbed 32 per cent year-on-year to $349 million in July. Markets such as Germany, the UK and Singapore also recorded moderate to strong growth during the April-July period.
The growth, however, was accompanied by continued challenges in some markets. Engineering exports to Saudi Arabia came under pressure amid logistical disruptions around the Strait of Hormuz, which affected trade flows.
EEPC India said the situation was further impacted by weaker purchasing activity in Saudi Arabia. A substantial portion of the country’s engineering imports is linked to large projects, some of which have been affected by the ongoing regional conflict.
The recovery was broad-based across product categories. Of the 34 engineering product panels, 27 registered year-on-year growth in July.
Seven categories, however, recorded declines, including iron and steel products, lead and its products, machine tools, aircraft and spacecraft and their parts, cranes, lifts and winches, and office equipment.
The latest export performance points to continued strength in India’s engineering sector, even as exporters navigate geopolitical risks, shifting global demand and logistical disruptions. Sustained growth across key markets during the opening months of 2026-27 could provide further support to India’s overall merchandise export performance.