India’s engineering exports surge 24% to $12.31 billion in May despite global trade headwinds

India’s engineering goods exports recorded a strong double-digit expansion in May 2026, showcasing the sector’s resilience despite geopolitical uncertainty and disruptions in global trade.

According to industry body EEPC India, engineering exports jumped 24.48 per cent year-on-year to USD 12.31 billion in May 2026, compared with USD 9.89 billion in May last year.

The growth momentum continued in the first two months of the financial year as well. Cumulative engineering exports during April-May 2026-27 increased 16.8 per cent to USD 22.66 billion, against USD 19.40 billion reported in the same period of the previous year.

EEPC India Chairman Pankaj Chadha said the sector has successfully navigated a difficult global environment and continued its positive growth trajectory despite challenges arising from the West Asia conflict and related trade disruptions.

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“The trend clearly shows adaptability of the engineering community to the dynamic external situation,” Chadha said, adding that government support and trade facilitation measures have helped Indian exporters remain competitive.

However, he cautioned that risks remain even after the announcement of a peace deal between the US and Iran, as disruptions in the global energy market could take time to normalise.

“It will take time for the deal to bear fruit considering the widespread disruption in the energy market and its ripple effect down the line,” Chadha said.

He added that sustaining the current export momentum would require continued efforts toward market diversification and product diversification, helping Indian engineering companies expand their footprint across global markets.

Engineering goods remain among India’s largest export categories, and the latest data reinforces the country’s growing position as a reliable manufacturing and supply chain partner amid changing global trade dynamics.