Engineering exports hit record high in FY26; govt support, FTAs boost growth: EEPC’s Chadha

Engineering goods exports hit an all-time high of $122.43 billion in the financial year 2025-26 despite multiple external challenges. Compared with the previous fiscal year, when total engineering exports stood at US$116.75 billion, this represents a growth of 4.86%.

In March 2026, when one of the key sea routes was disrupted due to the West Asia conflict, engineering goods exports recorded a marginal growth of 1.1%. During this period, total engineering exports stood at US$10.94 billion as compared to US$10.82 billion in March 2025.

“The upward curve shows the Indian engineering sector's resilience and ability to adapt to new situations. This also highlights the competitiveness of the engineering sector in the global market. FY26 was marked by geopolitical tensions, a shift in trade policy by the Trump administration, and logistical challenges, among others. The engineering community, while dealing with these issues, also identified new opportunities and went into the market as well as product diversification,” said Pankaj Chadha, Chairman, EEPC, India.


The timely government support and the free trade agreements (FTAs) helped the industry chart out new strategies to navigate the challenges coming its way, added Chadha.

Going forward, it's expected that the geopolitical tensions would ease and conflicts settle, paving the way for the robust engineering exports growth in the current fiscal, he noted.

The West Asia conflict that started on February 28 has caused serious supply chain disruptions, leading to a spike in energy prices. Prices of several raw materials have seen an upward trend and an inflationary trend. The WPI-based inflation in March reached almost a three-year high of 3.88%.

In light of the above, we remain cautiously optimistic about the engineering exports growth outlook in fiscal 2026-27.