India's engineering exports hit record $12.3 billion in May
New Delhi, June 26
India's engineering goods exports crossed the $12-billion mark for the first time in May, rising 24.48 per cent year-on-year to hit a record despite geopolitical tensions in West Asia and disruptions to global trade, EEPC India said on Friday.
According to the latest estimates by the government, engineering shipments stood at $12.31 billion in May 2026, compared with $9.89 billion in the corresponding month last year.
The sector accounted for 27.2 per cent of India's total merchandise exports during the month, it added.
The strong performance was driven by higher exports of electric machinery and equipment, ships, boats and floating structures, motor vehicles, and iron and steel products.
As many as 28 of the 34 engineering product panels recorded positive export growth during the month.
Commenting on the performance, EEPC India Chairman Pankaj Chadha said that as global companies are reworking their supply chains to reduce overreliance on a single country, especially China, new opportunities are emerging for Indian engineering firms.
"The support of the Commerce Ministry in terms of faster policy relief, cheaper trade finance, and stronger risk protection would also be of utmost importance in this regard," he said.
With the proper guidance of the government, we will be able to achieve the desired export target of $250 billion by 2030, Chadha said.
Region-wise, North America remained the largest market for Indian engineering goods, accounting for 19.3 per cent of exports in May, followed by West Asia and North Africa (16.7 per cent) and the European Union (15.2 per cent).
The exports to the West Asia and North Africa region rose about 44 per cent in May despite the geopolitical crisis, while shipments to the region were up 14 per cent during April-May.
— IANS
Reader Comments
Good numbers but let's not get too excited. The base effect is at play - last year May was relatively weak. Also, geopolitical tensions in West Asia could disrupt these gains anytime. We need more diversified markets beyond just North America and EU.
As someone working in the engineering sector, I can confirm the ground reality is improving. The demand for Indian-made electric machinery and auto components is real. But infrastructure bottlenecks at ports need to be addressed urgently to sustain this momentum.
Great to see our manufacturing sector shining! But I hope the benefits reach our MSMEs too, not just big players. The government must ensure cheaper trade finance reaches smaller exporters as mentioned in the article.
Impressive 44% growth to West Asia despite the crisis! Shows how Indian engineering firms are agile and reliable. This is exactly the kind of 'Make in India' success story we need to project globally.
As a global trade analyst, I'm watching India's engineering export trajectory closely. The 27.2% share of total exports is a healthy sign. However, the real test will be maintaining this growth when global demand slows down. Let's see if the $250 billion target is realistic.
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