India’s engineering goods exports grew 8.78% year-on-year to $10.35 billion in April 2026, supported by stronger shipments to the US, UK and Germany.
India’s exports of engineering goods to West Asia in April 2026, particularly to the UAE and Saudi Arabia, declined significantly as the US and Israel’s war with Iran disrupted shipping, but overall exports from the sector posted an 8.78 per cent growth (year-on-year) to $10.35 billion, per data shared by the Engineering Export Promotion Council (EEPC).“Among the top exporting countries, exports to the US, the UK and Germany increased in April 2026 but shipments to the UAE, Singapore and Saudi Arabia continued to drop,” according to an EEPC India analysis shared on Thursday.During the month, exports to North America increased 7.1 per cent to $2.14 billion, while exports to the EU rose 13 per cent to $1.87 billion.Exports to WANA (West Asia & North Africa) in April 2026, however, declined 18.1 per cent to $1.10 billion, while shipments to ASEAN, too, fell 7 per cent to $1.07 billion.UAE and Saudi Arabia see sharp fall in shipments“The demand in the WANA region has declined mainly due to drop in exports to the UAE (37.1 per cent dip in April 2026 to $339.23 million) and Saudi Arabia (9.7 per cent fall to $356.17 million)…as both the countries faced significant challenges due to regional conflicts,” the report noted.Saudi Arabia’s Purchasing Managers’ Index contracted for the first time since 2020 in March 2026, while the UAE faced challenges as a transhipment hub that relies heavily on key shipping routes, which have been affected by conflicts.However, within the region, exports to Oman increased, which is a positive indicator, especially due to the recently signed India-Oman CEPA, the report highlighted.Within the region, exports to Oman increased, which is a positive indicator, especially given the recently signed India-Oman CEPA, the report noted.“Indian exporters are also facing stiff competition from Chinese suppliers and even Russian suppliers at some instance,” it added.US, UK and Germany support overall export growthOn the brighter side, engineering goods exports to the US, India’s top market, rose 4.9 per cent in April 2026 to $1.74 billion. Exports to the UK, too, increased sharply by 40.8 per cent to $471.94 million, while shipments to Germany rose 27.8 per cent to $ 426 million.EEPC India Chairman Pankaj Chadha noted that India has signed a slew of FTAs with major partners, but the industry needs to understand the key challenges to market access in these countries to make the most of these deals.“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 said.Engineering goods maintain strong share in merchandise exportsThe share of engineering goods in total merchandise exports was recorded at 23.8 per cent in April 2026, slightly lower than 24.9 per cent in April 2025, according to government data.Published on May 28, 2026
