RECORD-BREAKING YEAR

FOR INDIAN ENGINEERING EXPORTS 2025-26

Indian engineering once again demonstrated its underlying strength as engineering exports from India rose to its all-time high for second consecutive fiscal year in 2025-26 despite geo-political conflicts in several regions of the world, stringent tariff policy of India’s largest export destination USA and economic slowdown in India’s major exporting regions.

This is the third time Indian engineering achieved its all-time high exports in last five fiscals after the Pandemic.

• During fiscal 2025-26, engineering shipment from India was recorded at an all-time high of USD 122.43 billion as against USD 116.75 billion in the previous fiscal, registering a growth of 4.86%.
• March 2026 saw 1.13% growth in engineering export over March 2026 even at the time of extreme supply disruption following the Iran War and subsequent closure of the Strait of Hormuz.
• Engineering shipment from India rose to USD 10.94 billion in March 2026 from 10.82 billion in March 2025.
• Engineering is the largest component of merchandise exports with a rising share of 27.71% during fiscal 2025-26. In March 2026 it is even better at 28.11%.

Product-group Wise Analysis

Among the 34 product panel as defined by the DGCI&S, as much as 26 product panels achieved year‑on‑year growth in exports during fiscal 2025‑26 while only eight conceded decline over the previ‑ ous fiscal.

The record high exports of Indian engi‑ neering was led by Electric machinery and equipment, Motor vehicles/cars, Iron and steel, products of iron and steel, Industrial machinery, Auto components/ parts, and Aluminium and its products among others. Among the major export‑ ed product groups, ‘Aircraft spacecraft and parts’, ‘Medical and scientific instru‑ ments’ and ‘Ships, boats and floating structures’ conceded decline in exports during fiscal 2025‑26.

Among the major products panels that contributed to record high exports in 2025‑26, exports of Copper and its products grew by a substantial 59.2% while Lead and its products grew by 34.2%. Two and three wheelers, and Mo‑ tor vehicles/cars recorded 24.2% and 23.1% increase respectively. Nuclear re‑ actors and other construction machin‑ ery also contributed with 21.1% and 19.7% growth in exports respectively.

Principal commodity group wise analy‑ sis shows –

• Metal and metal products:Exports of iron and steel grew by 11.5% while that of Copper and products grew by 59.2%, and Aluminium and its prod‑ ucts increased by 3.02%.Products of iron and steel recorded a growth of 2.4% in 2025‑26 on a year‑on‑year basis.
• Machinery: Industrial machinery reg‑ istered a growth of 9% year‑on‑year during 2025‑26 while Electric ma‑ chinery and equipmentrecorded 7% growth over the previous fiscal.
• Automotive: Motor vehicles and cars registered a growth of 23.1% with a shipment of USD while ex‑ ports of two and three wheelers increased by 24.2% and that of Auto component/ also grew by 5% in 2025‑26.

Destination Wise Observations:

The exports of entire fiscal 2025‑ 26 showed that North America and European Union remained the top two exported destination for Indian engineering with shares of 20% and 18% respectively in India’s global en‑ gineering exports. WANA and ASE‑ AN were next in the queue holding shares of 15% and 11% respectively.

Region-wise: Among the export‑ ing regions, engineering exports to North America increased by 1.9% while that to European Union in‑ creased by a higher 8.6% in 2025‑ 26 over the previous fiscal. Exports to all other regions increased in 2025‑26 expect WANA, Other Eu‑ rope and CIS. While exports to WANA dropped by 8%, engineering shipments to Other Europe and CIS fell by 4.5% and 5.9% year‑on‑year respectively.

Country-wise: Among the top ex‑ porting destination countries, ex‑ ports to second largest UAE and fourth largest Saudi Arabia slumped by 10% and 13% respectively in 2025‑26. Exports to USA as the largest consumer increased by 2% despite elevated tariff imposed by the Trump Administration. Exports to Germany and UK also increased in double‑digit during 2025‑26.

March 2026: During March 2026, exports to WANA dropped by as high as 50.7% due to supply chain issue following the closure of Hormuz. Among the major export‑ ing countries, exports to UAE and Saudi Arabia conceded substantial year‑on‑year drop of 67% and 45% respectively in March 2026.

Successful diversification

Despite a substantial decline in West Asian region, India’s engi‑ neering exports managed marginal growth in March 2026 as India was successful in market diversification by shifting shipments to ASEAN, North‑East Asia and other regions during March 2026.