According to the Engineering Export Promotion Council (EEPC), North America and the European Union drove the growth engines of India’s engineering goods exports in April, while shipments to the Association of Southeast Asian Nations (ASEAN) and West Asia and North Africa (WANA) regions declined.
The engineering goods sector was the top performer with exports worth $10.35 billion in April 2026, compared to $9.52 billion in April 2025, a growth of about 8.8%. It contributed 23.8% to India’s total merchandise exports of $43.56 billion in the first month of 2026-27. However, there has been a slight decline in the sector’s share compared to 24.9% in April 2025.
“India’s engineering goods exports continued their growth in the new financial year 2026-27 despite logistics and production disruptions due to the West Asia conflict,” EEPC said in reference to the ongoing conflict affecting exports in the WANA region.
It said the country’s engineering exports to most major destinations including the US, UK and Germany remained positive in April 2026. “Shipment to UAE [United Arab Emirates]However, Singapore and Saudi Arabia declined during this period.
Among the exporting regions, the top destinations, North America and the European Union, saw year-on-year growth of 7.1% and 13% respectively in April 2026, it said. “Exports to all regions recorded growth, but exports to WANA and ASEAN continued to decline,” it said.
“Demand declined in the WANA region mainly due to decline in exports to UAE and Saudi Arabia. According to the latest reports, both countries faced significant challenges due to regional conflicts,” it said.
In the case of ASEAN, declines have been observed in the Philippines, Cambodia and Myanmar. “This decline was mainly seen in automobile and auto component exports. Additionally, Singapore also witnessed a decline in aircraft, spacecraft and parts exports,” it said.
However, the sector saw nearly 82% year-on-year growth in exports to China to $301.08 million in April this year.
According to EEPC, the growth in April was mainly driven by product panels such as aluminum and its products (38%), copper and its products (80%), electric machinery and equipment (9.5%), two-wheelers and three-wheelers (36%), and auto components/parts (7.2%).
It said 28 out of 34 engineering product panels achieved year-on-year export growth during the month under review.
EEPC Chairman Pankaj Chadha said April this year saw growth in “almost” all sectors and all sectors.
“The decline was predominantly seen in WANA, where the region has been significantly affected by regional conflicts. However, within the region, exports to Oman increased, which is a positive indicator, especially due to the recently signed India-Oman CEPA,” he said. The India-Oman Free Trade Agreement (FTA) is scheduled to come into force on June 1.
Chadha pointed to practical issues hampering the full benefits of various FTAs recently signed by India. India has signed several FTAs with key partners, but the industry needs to understand the key challenges in market access in these countries to make the most of such deals, he said in a statement.
He expressed concern over the protectionist approach adopted by some trading partners. “While bilateral trade agreements are necessary in the face of rising protectionism, it is essential that the government and industry, along with Indian missions abroad, collaborate to identify and address non-tariff measures that create market access challenges,” he said.