VOL. 19, ISSUE NO. 7 | October 2026
Oversight
ENGINEERING ENGINEERING
TRADE ANALYSIS TRADE ANALYSIS
FOR FOR AUGUST 2026 AUGUST 2026
Engineering exports in August 2026 saw its highest monthly year-on-year growth in fiscal 2026-27 at 24.9 percent
| Trade Flow | Export figures (in US$ billion) | % Growth | ||||
|---|---|---|---|---|---|---|
| Aug-2025 | Aug-2026 | Apr-Aug 2025-26 | Apr-Aug 2026-27 | Aug 2026 over Aug 2025 | Apr-Aug 2026-27 over Apr-Aug 2025-26 | |
| Engineering Exports | 9.87 | 12.32 | 49.10 | 58.70 | 24.86% | 19.55% |
| Overall Merchandise Exports | 34.74 | 43.81 | 183.21 | 215.91 | 26.12% | 17.85% |
| Share of engineering | 28.41% | 28.12% | 26.80% | 27.19% | --- | --- |
| Service Exports | 31.19 | 38.87 | 162.34 | 183.36 | 24.62% | 12.95% |
Engineering exports from India continued to grow for the fifth straight month in fiscal 2026-27 and in August 2026, both monthly export value and yearon-year export growth were highest of this fiscal till date. Engineering exports in August 2026 was recorded at USD 12.32 billion as against USD 9.87 billion in the same month last fiscal, securing a growth of at 24.86 percent. On a cumulative basis, engineering exports during April-August 2026-27 stood at USD 58.70 billion as against USD 49.10 billion in the same period last fiscal, registering a growth of 19.55 percent. As per the Quick Estimates of the Government, share of engineering in India’s total merchandise exports was recorded at 28.1 percent during August 2026 while on a cumulative basis, the share was 27.2 percent during April-August 2026-27. This growth in fiscal 2026-27 was driven mainly by growth in shipments of product groups namely Electric machinery and equipment; Iron and steel; Ships, boat and floating structures; Aluminium and its products; and Copper and its products among others.Region wise, North America, EU and WANA continued to remain top exporting destinations for Indian engineering consuming around half of India’s global engineering supply.
HIGHLIGHTS
- Engineering exports from India continued to grow for the fifth straight month in fiscal 2026-27 and in August 2026, both monthly export value and year-on-year export growth were highest of this fiscal till date. Engineering exports in August 2026 was recorded at USD 12.32 billion as against USD 9.87 billion in the same month last fiscal, securing a growth of at 24.86 percent.
- On a cumulative basis, engineering exports during April-August 2026-27 stood at USD 58.70 billion as against USD 49.10 billion in the same period last fiscal, registering a growth of 19.55 percent.
- As per the Quick Estimates of the Government, share of engineering in India’s total merchandise exports was recorded at 28.1 percent during August 2026 while on a cumulative basis, the share was 27.2 percent during April-August 2026-27.
- In August 2026, 31 out of 34 engineering panels witnessed positive year-on-year growth. While 3 engineering panels including, Lead and products, Machine Tools and Office Equipments, witnessed year-onyear decline in exports.
- On a cumulative basis too, 30 out of 34 engineering panels recorded growth and remaining 4 engineering panels including, Products of Iron and Steel, Lead and products, Machine Tools and Office Equipments recorded negative growth during April-August 2026-27.
- Region wise analysis showed that engineering exports to all regions recorded growth during August 2026 barring WANA and CIS. North America continued to account for the largest share of Indian engineering exports (21%) followed by EU (17%), WANA (12%), ASEAN (11%) and North East Asia (9%) during August 2026.
- In cumulative terms that is April-August 2026, all regions barring CIS recorded growth in exports
- Country-wise, USA continued to remain the top destination for Indian engineering exports in April-August 2026-27 as it recorded an export of 9.97 billion. The y-o-y growth from USA is recorded at a decent 15.5%.
ENGINEERING EXPORTS: MONTHLY TREND
The monthly engineering export figures for 2026-27 vis-à-vis 2025-26 are shown below as per the latest DGCI&S estimates:
| Month | 2025-26 | 2026-27 | Growth (%) |
|---|---|---|---|
| April | 9471.07 | 10353.83 | 9.32 |
| May | 9874.94 | 12312.13 | 24.68 |
| June | 9491.40 | 11475.97 | 20.90 |
| April-June | 28837.41 | 34141.20 | 18.39 |
| July | 10399.95 | 12242.60 | 17.71 |
| August | 9867.17 | 12319.81 | 24.86 |
| April-August | 49104.53 | 58704.34 | 19.55 |
TOP 25
ENGINEERING EXPORT DESTINATIONS IN AUGUST 2026
We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during August 2026 over August 2025 as well as in cumulative terms during April-August 2026-27 vis-à-vis April-August 2025-26. The data clearly shows that top 25 countries contribute more than 75 % of total engineering exports.
Table 2: Engineering exports country-wise
| Countries | Aug-25 | Aug-26 | Growth (%) | Apr' - Aug’ 2025-26 | Apr' - Aug’ 2026-27 | Growth (%) |
|---|---|---|---|---|---|---|
| U S A | 1679.73 | 2200.03 | 31.0% | 8631.54 | 9971.84 | 15.5% |
| UAE | 649.12 | 475.93 | -26.7% | 3077.86 | 3008.27 | -2.3% |
| GERMANY | 412.77 | 487.97 | 18.2% | 2030.36 | 2317.74 | 14.2% |
| U K | 382.92 | 492.61 | 28.6% | 1922.58 | 2299.59 | 19.6% |
| SINGAPORE | 189.98 | 282.81 | 48.9% | 1780.46 | 2004.68 | 12.6% |
| CHINA | 242.50 | 424.65 | 75.1% | 1087.75 | 1774.28 | 63.1% |
| MEXICO | 309.20 | 360.24 | 16.5% | 1385.51 | 1649.46 | 19.1% |
| SAUDI ARABIA | 358.93 | 224.94 | -37.3% | 1836.93 | 1640.67 | -10.7% |
| KOREA RP | 220.93 | 466.06 | 111.0% | 1172.67 | 1624.69 | 38.5% |
| SOUTH AFRICA | 309.78 | 392.97 | 26.9% | 1156.97 | 1510.96 | 30.6% |
| JAPAN | 164.65 | 278.38 | 69.1% | 1057.94 | 1399.57 | 32.3% |
| ITALY | 302.66 | 285.03 | -5.8% | 1379.26 | 1382.00 | 0.2% |
| SRI LANKA | 127.74 | 230.84 | 80.7% | 548.48 | 1323.96 | 141.4% |
| FRANCE | 190.56 | 233.03 | 22.3% | 930.27 | 1198.79 | 28.9% |
| MALAYSIA | 141.09 | 231.24 | 63.9% | 545.48 | 1150.86 | 111.0% |
| BRAZIL | 216.02 | 237.47 | 9.9% | 1075.00 | 1136.28 | 5.7% |
| NEPAL | 211.94 | 227.09 | 7.1% | 1008.14 | 1118.84 | 11.0% |
| INDONESIA | 103.62 | 292.30 | 182.1% | 676.61 | 1031.26 | 52.4% |
| VIETNAM | 142.46 | 191.32 | 34.3% | 614.90 | 1023.52 | 66.5% |
| AUSTRALIA | 127.15 | 275.97 | 117.0% | 612.10 | 980.41 | 60.2% |
| NETHERLAND | 194.95 | 187.52 | -3.8% | 927.90 | 979.80 | 5.6% |
| THAILAND | 174.78 | 222.29 | 27.2% | 904.10 | 926.53 | 2.5% |
| TURKEY | 162.05 | 224.36 | 38.4% | 862.12 | 908.93 | 5.4% |
| SPAIN | 146.10 | 158.07 | 8.2% | 629.62 | 845.83 | 34.3% |
| OMAN | 57.37 | 197.99 | 245.1% | 340.86 | 800.01 | 134.7% |
| Total engineering exports to top 25 countries | 7219.00 | 9281.12 | 28.6% | 36195.43 | 44008.77 | 21.6% |
| Total engineering exports | 9867.17 | 12319.81 | 24.9% | 49104.53 | 58704.34 | 19.5% |
REGION WISE INDIA’S ENGINEERING EXPORTS
The following table depicts region wise India’s engineering exports for April-Aug 2026 as compared to April-Aug 2025
| Region | Aug-25 | Aug-26 | Growth (%) | Apr' - Aug’ 2025-26 | Apr' - Aug’ 2026-27 | Growth (%) |
|---|---|---|---|---|---|---|
| NORTH AMERICA | 2117.84 | 2721.76 | 28.5% | 10574.56 | 12346.60 | 16.8% |
| EUROPEAN UNION | 1810.33 | 1958.69 | 8.2% | 8720.95 | 9742.07 | 11.7% |
| WANA | 1450.02 | 1286.27 | -11.3% | 7080.89 | 7299.97 | 3.1% |
| ASEAN | 840.47 | 1311.01 | 56.0% | 4998.63 | 6600.22 | 32.0% |
| N E ASIA | 714.26 | 1286.62 | 80.1% | 3807.37 | 5409.00 | 42.1% |
| SSA( Sub Saharan Africa) | 888.13 | 1165.56 | 31.2% | 3882.10 |
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