Engineering Exports Cross USD 12 Billion For First Time In May: EEPC India

New Delhi, Jun 26 (KNN) India's engineering goods exports crossed the USD 12 billion mark for the first time in May 2026, registering robust growth despite geopolitical tensions in West Asia and global trade disruptions, according to EEPC India.
 
Electrical Machinery, Vehicles Lead Export Growth 
 
Engineering exports stood at USD 12.31 billion during the month, compared with USD 9.89 billion in May 2025, reflecting a year-on-year growth of 24.48 percent. 
 
As per the government's quick estimates, engineering products accounted for 27.2 percent of India's total merchandise exports in May.
 
The growth was led by exports of electrical machinery and equipment, ships and floating structures, motor vehicles, and iron and steel products. Out of 34 engineering product panels, 28 recorded positive export growth during the month.
 
EEPC India Highlights Sector's Global Competitiveness
 
Commenting on the performance, EEPC India Chairman Pankaj Chadha said the sector's sustained growth reflects its resilience and increasing competitiveness in global markets.
 
He noted that ongoing global supply chain diversification is creating new opportunities for Indian engineering exporters as companies seek to reduce dependence on a single sourcing destination.
 
Industry Seeks Continued Policy Support 
 
Chadha said Indian exporters would need to enhance manufacturing scale, improve product quality, strengthen logistics and comply with destination-country standards to capitalise on these opportunities. 
 
He also called for continued government support through faster policy interventions, affordable trade finance and stronger export risk protection mechanisms.
 
Sector Eyes USD 250 Billion Export Target by 2030 
 
Expressing confidence in the sector's long-term prospects, Chadha said the industry remains optimistic about achieving the engineering export target of USD 250 billion by 2030 with continued policy support.
 
Engineering exports during April-May FY27 rose 16.8 percent to USD 22.66 billion, compared with USD 19.41 billion during the corresponding period of the previous financial year.
 
North America Retains Top Market Position 
 
Region-wise, North America remained the largest market for Indian engineering exports in May, accounting for 19.3 percent of total shipments, followed by West Asia and North Africa (16.7 percent) and the European Union (15.2 percent).
 
Despite the conflict in West Asia, engineering exports to the West Asia and North Africa region increased by 44.3 percent in May and 14.1 percent during the April-May period.
 
Top Export Destinations Register Positive Growth 
 
Among individual markets, exports to India's top five destinations, the United States, the UAE, the UK, Germany and Saudi Arabia, all recorded positive growth during the first two months of FY27. 
 
The United States continued to be the largest destination, with engineering exports rising 7 percent year-on-year to USD 3.64 billion during April-May.
 
(KNN Bureau)