India's engineering goods exports climbed 21 per cent year-on-year to $11.48 billion in June 2026, up from $9.51 billion in the same month last year, according to data released by EEPC India on Monday, 27 July. The growth was fuelled by robust demand from the United States, Germany, China, Singapore, and Oman, with the latter recording a near five-fold surge linked to the newly implemented India-Oman Free Trade Agreement (FTA).

Key Destinations and Growth Drivers

The United States retained its position as India's top engineering export destination in June, with shipments valued at $1.95 billion. China emerged as a standout performer, with exports jumping 74 per cent year-on-year to $361.47 million. Shipments to Oman surged 420 per cent year-on-year to $258.97 million — a figure that EEPC India directly attributed to the rollout of the bilateral free trade pact.

Notably, while most regions recorded an uptick, country-level declines were observed in parts of the Middle East, including the UAE and Saudi Arabia. The Oman surge, however, was sufficient to keep India's overall performance in the West Asia and North Africa (WANA) region in positive territory.

Sector-Wide Performance

Of the 34 engineering export panels tracked by EEPC India, 27 recorded year-on-year growth in June. The remaining seven panels — including lead and products, IC engines, machinery for ATMs, cranes, lifts and winches, office equipment, and prime mica — saw moderation in shipment volumes.

Engineering goods accounted for 28.4 per cent of India's total merchandise exports in June 2026, underscoring the sector's outsized role in the country's trade basket.

What EEPC India Said

EEPC India Chairman Pankaj Chadha described the performance as a demonstration of resilience in the face of global trade disruptions. 'Engineering goods sector has adapted to the changed trade scenario and shown immense resilience, but the engineering community needs to remain watchful of emerging challenges,' Chadha said.

In a separate statement, Chadha added: 'Engineering goods exports in the last three months of the current fiscal have stayed above US$10 billion. We need continuous assistance from the Government of India to continue the growth momentum.'

Quarterly Outlook

On a cumulative basis, Indian engineering exports reached $34.14 billion during the April–June quarter of 2026-27, compared with $28.91 billion in the same quarter of the previous fiscal year — an increase of 18.09 per cent. The sector has now sustained shipments above the $10 billion monthly mark for three consecutive months, a threshold that industry bodies regard as a benchmark for sustained export momentum. With the India-Oman FTA already bearing early fruit and the US remaining a dominant buyer, the sector's near-term trajectory will depend on how global trade headwinds — particularly disruptions linked to West Asia — evolve in the months ahead.