India’s Engineering Exports Surpass $10 Billion in February Amidst Global Tensions

Synopsis

Despite ongoing geopolitical conflicts and a global economic slowdown, India's engineering exports have shown remarkable growth. Surpassing $10 billion in February 2026, this achievement highlights the resilience of the engineering sector in challenging times.

Key Takeaways

Engineering exports surpassed $10 billion in February 2026.

Year-on-year growth of 12.9 percent was achieved.

Exports to China more than doubled to $436.18 million .

Challenges include rising costs and supply chain issues.

The government has launched the RELIEF scheme to assist exporters.

New Delhi, March 25 (NationPress) In the face of geopolitical unrest and a global economic downturn, India's engineering exports demonstrated remarkable resilience in February 2026, surpassing $10 billion, according to a report released on Wednesday.

India's engineering exports exhibited an impressive 12.9 percent year-on-year (YoY) increase, reaching $10.36 billion. Out of the 25 major markets for Indian engineering goods, exports to 17 nations showed growth during this period, as reported by EPC India.

While exports to the US and UAE experienced a decline in February, there was a notable increase in shipments to China, Saudi Arabia, the UK, Singapore, and the Republic of Korea.

Specifically, exports to China more than doubled, soaring to $436.18 million in February 2016 compared to $207.45 million in the same month the previous year.

In contrast, the US, India's largest market, saw a 4.9 percent YoY decrease in shipments, totaling $1.57 billion in February 2026, while the UAE, the second-largest market, witnessed a 14 percent YoY decline.

Pankaj Chadha, the Chairman of EEPC India, described February's performance as a “silver lining for the engineering sector,” amidst the challenges of global trade disruptions caused by supply chain issues and soaring freight costs.

Chadha stated, “Exporters are facing increased financial challenges, including war-risk surcharges, high insurance premiums, and exorbitant freight costs. Energy prices have surged, and many exporters are struggling with critical raw material shortages.”

The engineering sector's contribution to total merchandise exports was recorded at 28.3 percent in February 2026, slightly down from 28.5 percent in January 2026, according to government statistics.

Chadha also praised the government's prompt action in introducing the Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme, which aims to provide credit insurance support for exporters impacted by the ongoing conflict in West Asia.

Prime Minister Narendra Modi has suggested that the crisis in West Asia poses significant challenges not just for India but for the global economy as well.

aar/pk

Point of View

It's evident that India's engineering sector continues to thrive despite significant global challenges. The double-digit growth in exports reflects the strength and adaptability of Indian exporters. However, attention must be paid to the financial burdens they face, necessitating supportive government measures to ensure sustained progress.

NationPress

10 May 2026

Frequently Asked Questions

What drove the growth in India's engineering exports?

The growth can be attributed to increased shipments to several key markets, despite declines in major markets like the US and UAE.

How much did India's engineering exports reach in February 2026?

India's engineering exports reached $10.36 billion, marking a 12.9 percent YoY increase.

What challenges are Indian exporters currently facing?

Exporters are struggling with high freight costs, war-risk surcharges, and raw material shortages.

What percentage of total merchandise exports do engineering goods represent?

Engineering goods accounted for 28.3 percent of total merchandise exports in February 2026.

What support has the government provided for exporters?