Engineering Exports Hit USD 122.4 Bn In FY26, Grow 75% Over 12 Years: EEPC India

New Delhi, Jun 8 (KNN) India's engineering exports reached USD 122.43 billion in the financial year 2025–26, marking the third consecutive annual record and a rise of nearly 75 per cent from USD 70 billion in FY 2014–15, according to EEPC India.

The sector now contributes close to 28 per cent of the country's total merchandise exports, making it the single largest component of India's goods export basket.

The figures were highlighted at a session organised by EEPC India's Western Region, where senior government officials and industry leaders assessed the sector's performance and outlook.

Resilience Amid Global Headwinds

Speaking at the event, Vimal Anand, Joint Secretary, Department of Commerce, described the growth as a reflection of the strength, competitiveness, and resilience of India's manufacturing and export ecosystem.

Anand noted that the expansion had been achieved against a challenging backdrop of geopolitical tensions, supply chain disruptions, and volatile market conditions — including trade route disturbances arising from the West Asia conflict. 

He credited a consultative approach between the government and industry for enabling timely policy responses during such disruptions.

Policy Levers Behind the Growth

Anand pointed to several government initiatives that have strengthened India's export infrastructure, including the Market Access Initiative (MAI) Scheme, Brand India Engineering Campaign, Production Linked Incentive (PLI) Scheme, National Single Window System (NSWS), Quality Control Orders (QCOs), and the One District One Product (ODOP) Scheme.

Ashwin Golapkar, Deputy Director General of Foreign Trade, Mumbai, highlighted the newly launched Export Promotion Mission (EPM), backed by an outlay of Rs. 25,060 crore for 2025–31, which provides a unified digital export support framework through its Niryat Protsahan and Niryat Disha components.

Free trade agreements with key partners — including the UK, the EU, UAE, Australia, and EFTA nations — have also been instrumental in reducing trade barriers and expanding India's participation in global value chains.

EEPC India Vice Chairman Aakash Shah said, "The government has always proactively responded to the needs of the engineering sector. The multiple FTAs signed by India with key trade partners have unlocked new opportunities for the industry, especially in the MSME segment.”

Western Region Leads; Target of USD 250 Billion by 2030

EEPC India Chairman Pankaj Chadha said India’s domestic fundamentals remain sound, with a stable fiscal position and steady consumption supporting exports, adding that the country has steadily filled market space vacated by developed economies.

He noted that global headwinds—such as tighter financial conditions and weaker demand in advanced economies—persist.

“However, export volumes have remained resilient, buoyed by targeted government interventions, notably the RELIEF Scheme, aimed at offsetting high logistics and insurance costs, and interest subvention support for key sectors, which have provided critical assistance to exporters,” Chadha added.

“India’s engineering sector is one of the fastest-growing and most diverse industrial sectors in the country. Western region with contribution of nearly 39 per cent in India’s total engineering exports continues to be a pillar of India’s export strength with USD 47.5 billion of engineering exports in 2025-26,” he highlighted.

(KNN Bureau)