India's Engineering Exports Jump 21% in June as Shipments to China Surge 74%

Post by : Saif

India's engineering goods exports rose 21% year-on-year to $11.48 billion in June 2026, supported by robust demand from China, the United States, Germany, and Oman, according to data released by Engineering Export Promotion Council of India> (EEPC India).

The strong performance came despite ongoing disruptions to global shipping routes caused by tensions in the Red Sea and the Strait of Hormuz, which have increased freight, insurance, and transit costs for exporters.

Exports to China Surge 74%

Engineering exports to China recorded the fastest growth among major markets, rising 74% from a year earlier to $361.47 million in June.

The United States remained India's largest destination for engineering products, with exports valued at $1.95 billion during the month.

Exports to Oman also posted exceptional growth, increasing more than fourfold to nearly $259 million, helping offset weaker shipments to some other West Asian markets.

Strong First Quarter Performance

During the April–June quarter, the first quarter of the 2026-27 fiscal year, India's engineering exports rose 18.09% to $34.14 billion, compared with $28.91 billion in the same period last year.

Engineering goods accounted for 28.4% of India's total merchandise exports in June, highlighting the sector's importance to the country's export economy.

Read more: South Korea Raises 2026 Growth Forecast to 3% as AI Chip Boom Boosts Economy

Sector Remains Resilient Despite Shipping Challenges

EEPC India Chairman Pankaj Chadha said the engineering sector has remained resilient despite disruptions in global trade routes caused by geopolitical tensions in West Asia.

He noted that engineering exports have remained above $10 billion for three consecutive months and emphasized the need for continued government support to sustain export growth amid rising global risks.

Most Product Categories Record Growth

According to EEPC India, 27 of the 34 engineering product categories registered year-on-year export growth in June.

However, exports declined in several segments, including:

• Lead and lead products
• Internal combustion engines
• Cranes and lifts
• Office equipment

The report also noted that exports increased across most global regions, while shipments to the United Arab Emirates and Saudi Arabia declined. Strong demand from Oman helped keep overall engineering exports to the West Asia and North Africa region in positive territory.

India also recorded export growth to Turkey, reversing the decline seen in the previous year, reflecting improving demand across multiple international markets.

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