India’s engineering goods exports crossed the $12 billion mark for the first time in May, driven by strong demand for electrical machinery, vehicles and steel products.
Key Highlights:
- Engineering exports reached a record US$12.31 billion in May 2026.
- Exports grew 24.48% year-on-year from US$9.89 billion.
- Electrical machinery, ships, vehicles and steel led the growth.
- Engineering products accounted for 27.2% of India’s total exports.
- Exports to West Asia continued to rise despite regional tensions.
- India aims to achieve US$250 billion in engineering exports by 2030.
New Delhi, June 26: India’s engineering goods exports reached an all-time high of US$12.31 billion in May 2026, marking the first time exports have crossed the US$12 billion milestone during the month of May. The sector recorded a strong 24.48% year-on-year growth compared to US$9.89 billion in May 2025, despite geopolitical tensions in West Asia and ongoing global trade disruptions.
According to EEPC India, the growth was primarily driven by higher exports of electrical machinery and equipment, ships and boats, motor vehicles, and iron and steel products. Out of 34 engineering product categories, 28 registered positive export growth, highlighting broad-based demand across global markets. Engineering goods accounted for 27.2% of India’s total merchandise exports during the month.
EEPC India Chairman Pankaj Chadha said Indian engineering exporters are benefiting from global supply chain diversification as companies look to reduce dependence on a single manufacturing hub. He emphasized that improving production scale, product quality, logistics and compliance with international standards will be crucial for sustaining export growth, along with continued policy support from the government.
The sector has maintained its strong momentum in the current financial year, with cumulative engineering exports reaching US$22.66 billion during April-May FY2026-27, up 16.8% from the same period last year. Region-wise, North America, West Asia and North Africa (WANA), and the European Union remained the largest markets for Indian engineering products. Notably, exports to WANA rose 44.3% in May, while shipments to the USA, UAE, UK, Germany and Saudi Arabia also posted healthy growth, reinforcing India’s ambition of achieving US$250 billion in engineering exports by 2030.
