Engineering Exports Cross USD 10 Bn In Feb; EEPC India Flags Iran-Linked Shipping Disruptions

New Delhi, Mar 25 (KNN) India’s engineering goods exports recorded strong growth in February 2026, despite ongoing geopolitical tensions and global economic uncertainties. Exports rose 12.9 per cent year-on-year (YoY) to USD 10.36 billion from USD 9.17 billion in February 2025.

Commenting on the data, Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India, noted that the double-digit growth comes as a silver lining amid global trade disruptions.

Chadha said, "The recent conflicts involving Iran have been causing significant disruption in sea trade routes. Exporters have been complaining of escalating financial burdens, including war-risk surcharges, high insurance premiums, and extraordinarily high freight costs. Apart from that, energy prices have skyrocketed, and even in many cases, exporters have faced critical raw materials shortages."

On a cumulative basis, engineering exports grew 5.25 per cent during April–February 2025–26 to USD 111.49 billion YoY, up from USD 105.94 billion. 

While exports to major markets such as the United States and the United Arab Emirates declined, several countries registered positive growth. These included China, Saudi Arabia, the United Kingdom, Singapore, and the Republic of Korea.

Exports to the US fell 4.9 per cent to USD 1.57 billion, while shipments to the UAE declined 14 per cent to USD 591.93 million. In contrast, exports to China more than doubled to USD 436.18 million, indicating strong demand recovery in select markets.

Overall, 17 out of 25 key export destinations recorded positive growth during the month.

Government Support Measures

The EEPC chairman welcomed the government’s Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, aimed at providing credit insurance support to exporters affected by the West Asia crisis.

However, concerns persist that the ongoing geopolitical situation could affect export performance in the coming months, with Prime Minister Narendra Modi also indicating that the West Asia crisis may pose broader challenges for the global economy.

Cumulative Performance and Sector Drivers

Engineering goods accounted for 28.3 per cent of India’s total merchandise exports in February, with growth during the fiscal period driven by key segments such as metals and metal products, including copper, which rose by 52.53 per cent, and iron and steel, which increased by 11.54 per cent.

Industrial and electrical machinery also recorded steady growth, while the automotive sector performed strongly, with motor vehicles and cars registering a 24.72 per cent rise in February.

Regional Trends

Region-wise, North America remained the largest market, accounting for 20 per cent of exports, followed by the European Union (18 per cent), West Asia and North Africa (15 per cent), and ASEAN (11 per cent).

During the April–February period, exports grew across most regions, except West Asia and North Africa, Other Europe, and CIS countries.

(KNN Bureau)