India’s Engineering Exports Hit Record $122 Billion in FY26

India’s engineering sector has reached a new milestone, with exports climbing to a record $122.43 billion in FY 2025–26, surpassing last year’s $116.75 billion and registering around 5% growth, according to EEPC India.

The achievement stands out given the tough global environment. From geopolitical tensions to supply chain disruptions triggered by the West Asia conflict, along with rising freight and energy costs, exporters had to navigate multiple challenges. Despite these pressures, the sector managed to sustain growth by diversifying markets, expanding product lines, and leveraging free trade agreements.

Even during March 2026, when a key maritime route was disrupted due to ongoing tensions in West Asia, engineering exports still posted a modest rise of 1.1%, reaching $10.94 billion compared to $10.82 billion in the same month last year. This resilience highlights the sector’s ability to adapt under stress.

EEPC India Chairman Pankaj Chadha credited this performance to a mix of industry agility and timely policy support. According to him, exporters not only dealt with disruptions but also actively explored new markets and product opportunities.

Free trade agreements played a critical role in helping exporters shift focus to alternative geographies when traditional trade routes faced disruptions.

Looking ahead to FY 2026–27, EEPC India remains cautiously optimistic. While there are expectations that geopolitical tensions may ease, concerns such as high energy prices and raw material inflation continue to weigh on the outlook. The sector is hopeful of stronger growth but acknowledges that global uncertainty will require a balanced and strategic approach.

With inputs from IANS