Engineering Goods Drive India’s Export Growth With 25% August Surge

India’s engineering goods exports rose for the fifth consecutive month of the current financial year, increasing 24.86 per cent year-on-year to $12.32 billion in August, according to the Engineering Export Promotion Council of India (EEPC India).

The sector recorded growth across 31 of 34 engineering product panels during the month. Exports increased in almost all of India’s top 25 destinations, with the UAE and Saudi Arabia being the notable exceptions amid logistics disruptions linked to the West Asia crisis.

The United States remained a major market, with engineering exports rising 31 per cent year-on-year to $2.20 billion in August.

Shipments to China increased 75 per cent to $424.65 million, compared with $242.50 million in August 2025. Exports to the UK rose 28.6 per cent, while shipments to South Korea more than doubled to $466 million.

Engineering exports to Indonesia recorded particularly strong growth, rising 182 per cent to $292.30 million during the month.

Exports to Oman also witnessed a sharp increase, nearly quadrupling to $198 million. The rise followed the India-Oman Free Trade Agreement, which came into force in June 2026.

EEPC India Chairman Pankaj Chadha said the sector’s recent performance, despite disruptions to key trade routes and geopolitical tensions, reflected growing global demand for Indian engineering products.

The industry body said the latest growth indicates more supportive global demand conditions for Indian engineering exporters. It also highlighted the importance of expanding India’s presence in international markets, diversifying export destinations and strengthening supply-chain resilience.

On a cumulative basis, engineering goods exports during April-August 2026-27 stood at $58.70 billion, compared with $49.10 billion during the corresponding period of the previous financial year, registering a growth of 19.55 per cent.

The sustained rise in engineering exports comes as Indian manufacturers expand their presence across major global markets, with strong growth recorded across several destinations despite ongoing geopolitical and logistical challenges.