Engineering goods exports rise 10.4% in January 2026, surpass $100 billion in FY26

India’s engineering goods exports recorded a 10.4% year-on-year increase in January 2026, reaching US$10.40 billion, driven primarily by strong shipments of copper, iron and steel, and motor vehicles. The sector also crossed a major milestone during the fiscal year, with cumulative exports exceeding US$100 billion for the first time.

Sector crosses a major export milestone during the April-January period 

According to quick estimates, engineering goods exports grew 4.52% year-on-year to US$101.13 billion during the April-January period of FY2025-26, marking a significant expansion in India’s merchandise trade performance.

However, shipments to the United States, India’s largest market for engineering goods, declined 6.8% year-on-year to US$1.51 billion in January 2026, compared with US$1.62 billion in January 2025.

Government schemes expected to support export growth

Commenting on the latest export figures, Pankaj Chadha, Chairman of EEPC (Engineering Export Promotion Council) India, highlighted the sector’s recovery across several global markets.

“Favourable base was one of the major reasons behind the double-digit growth in January this year. Notably, Indian engineering exports also bounced back in most of the regions. This is very positive news, especially at a time when global trade is going through realignment pushed by changing geopolitics,” Chadha said in a statement.

He also expressed optimism regarding the outlook for the sector, noting that exports could surpass US$120 billion in FY26.

“The recent schemes announced by the government, especially the Market Access Scheme, are estimated to be a big enabler of Indian exports. This is crucial at a time when more Indian exporters are eager to participate in global exhibitions and exhibit their products to global markets,” Chadha added.

EEPC India has also urged the government to reconsider its decision to reduce RoDTEP benefits by half, citing continuing challenges in global markets.

Copper, iron, steel, and vehicles lead export growth

Exports of copper and copper products increased 52% year-on-yeat to USD$346.9 million, while iron and steel shipments rose 22% to USD$912 million. Motor vehicle export climbed 28% to USD$876.9 million, compared with USD$687 million in January 2025.

Overall, 28 of the 34 engineering panels registered positive year-on-year growth in January 2026. Panels that recorded a decline included nickel and its products, aircraft and spacecraft parts, hand tools and cutting tools, and prime mica and its products.

Strong performance across key export markets

1. Engineering goods accounted for 28.5% of India’s total merchandise exports in January 2026, while the cumulative share stood at 27% during April-January FY26.
2. Among the top 25 markets, shipments to 19 countries recorded positive growth in January 2026, while exports to six markets declined.
3. The United States remains the largest destination for engineering goods.
4. Growth was recorded in several other markets, including Saudi Arabia, the United Arab Emirates, Germany, China, Singapore and the United Kingdom.
5. UAE-bound exports rose to 42.4% to USD$871.48 million, while shipments to Saudi Arabia increased to 33.3% to USD$518.58 million.
6. Engineering exports to China increased 26.7% to USD$304.85 million.

In sharp contrast, shipments to Mexico, France, Bangladesh, Turkey, and Thailand declined during the month. Regionally, North America and the European Union remained the largest export destinations for engineering goods. Export growth was recorded across most regions, with the exception of Sub-Saharan Africa, Latin America, and the Commonwealth of Independent States (CIS) during the month.

Source: Economic Times – Engineering goods exports report (EEPC India)