Engineering Exports Rise 9% YoY To USD 10.35 Bn In April Despite West Asia Headwinds: EEPC India

New Delhi, May 28 (KNN) India's engineering goods shipments maintained their growth momentum at the start of the new fiscal year, even as regional conflict weighed on exports to key West Asian markets.

India’s engineering goods exports grew 8.78 per cent year-on-year (YoY) to USD 10.35 billion in April 2026, up from USD 9.52 billion in April 2025, according to data released by EEPC India.

Engineering goods accounted for 23.8 per cent of total merchandise exports in April 2026, marginally lower than the 24.9 per cent share recorded in April 2025. 

Of the 34 engineering product panels tracked, 28 recorded YoY export growth during the month.

Growth Drivers

The April expansion was led by strong performances across several product categories, including copper and its products (80 per cent), aluminium and its products (38 per cent), two- and three-wheelers (36 per cent), electric machinery and equipment (9.5 per cent), and auto components and parts (7.2 per cent).

Geographically, North America and the European Union — India's two largest engineering export destinations — recorded growth of 7.1 per cent and 13 per cent respectively. Notably, exports to China surged 81.7 per cent year-on-year to USD 301.08 million in April 2026.

West Asia Weighs on Exports

EEPC India Chairman Pankaj Chadha said, "Decline was majorly noted in WANA (West Asia and North Africa), where the region has been significantly impacted by the regional conflicts. However, within the region, exports to Oman increased, which is a positive indicator, especially due to the recently signed India-Oman CEPA."

Exports to ASEAN also declined, with weakness noted in the Philippines, Cambodia, and Myanmar — primarily in automobile and auto component shipments — as well as a drop in Singapore in the aircraft, spacecraft, and parts segment.

Non-Tariff Barriers a Growing Concern

Chadha welcomed the broad-based growth but flagged the rising challenge of non-tariff measures (NTMs) as a key obstacle to market access globally.

"While bilateral trade agreements are essential in the growing protectionism, it is essential that the government and industry, along with the Indian Missions abroad, collaborate to identify and address the non-tariff measures that create market access challenges," he emphasised.

His remarks aligned with findings from UNCTAD's Global Trade Update (May 2026), which noted that while tariffs have risen by around 10–18 per cent, non-tariff measures impose higher export costs than tariffs for 88 per cent of countries worldwide.

(KNN Bureau)