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February 2026
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Engineering exports recorded more than 10% growth in January 2026 after registering marginal growth last month

After registering a marginal growth last month, in January 2026, India’s engineering exports increased by more than 10%.
This is despite the fact that engineering shipment in January 2026 at USD 10.4 billion was lower than that pof December 2025 at USD 10.98 billion – the significant growth therefore can be attributed to low base in the January of last year.
On a cumulative basis, engineering exports from India grew by 4.52 percent to USD 101.13 billion during April-January 2025-26 crossing over the USD 100 billion mark for the first time in the current fiscal.
As per the quick estimates of the government, the share of engineering in total merchandise exports was recorded at an impressive 28.5 percent in January 2026. The share was recorded at 27 percent on a cumulative basis during April – January 2025-26.
In January 2026, 28 out of 34 engineering panels witnessed positive year-on-year growth. While 6 engineering panels including Nickel and its products, aircraft, spacecraft and parts, hand tools and cutting tools and prime mica and products and project exports witnessed year-on-year decline in exports.
On a cumulative basis too, 28 out of 34 engineering panels recorded growth and remaining 3 engineering panels including Nickel and its products, Aircraft and Spacecrafts, Ships, boats and floating structures, hand tools and cutting tools, prima mica and project goods recorded negative growth during April-January 2025-26.
Region wise, North America and EU remained the top two exporting regions for Indian engineering. Also, export growth was recorded in all regions in January 2026 barring North America, SSA, Latin America and CIS . In cumulative terms increase was noted in all regions barring WANA, Other Europe and CIS.
Country-wise, USA remained the top destination although exports declined. USA is followed by UAE and Saudi Arabia both countries recording a y-o-y growth in exports in January 2026. On a cumulative basis, decline was noted in UAE and Saudi Arabia.
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February-2026 engineering exports hit peak growth for fiscal 2025-2026

After registering a marginal growth last month, in January 2026, India’s engineering exports increased by more than 10%. This is despite the fact that engineering shipment in January 2026 at USD 10.4 billion was lower than that pof December 2025 at USD 10.98 billion. Although the engineering shipment in December 2025 at USD 10.98 billion was the second highest of fiscal 2025-26 and very close to that of November 2025 at USD 11.01 billion, the growth was marginal due to high base of the previous year as December 2024 saw engineering exports at USD 10.84 billion. While low growth of December 2025 resulted from lower statistical base, higher year-on-year growth in January 2026 was due to lower base last year. On a cumulative basis, engineering exports from India grew by 4.52 percent to USD 101.13 billion during April-January 2025-26 crossing over the USD 100 billion mark for the first time in the current fiscal. As per the quick estimates of the government, the share of engineering in total merchandise exports was recorded at an impressive 28.5 percent in January 2026. The share was recorded at 27 percent on a cumulative basis during April – January 2025-26.  High exports and growth in January 2026 was attributed to abnormally high Copper exports securing more than 50% growth year-on-year along with decent to sizeable increase in exports of Iron and Steel, Aluminium and products, Motor Vehicles/Cars, Other construction machinery, and Ships, Boats and Floating Structures among others Region wise, North America and EU remained the top two exporting regions for Indian engineering. Also, export growth was recorded in all regions in January 2026 barring North America, SSA, Latin America and CIS . In cumulative terms increase was noted in all regions barring WANA, Other Europe and CIS. Country-wise, USA remained the top destination although exports declined. USA is followed by UAE and Saudi Arabia both countries recording a y-o-y growth in exports in January 2026. On a cumulative basis, decline was noted in UAE and Saudi Arabia

Trade Flow Export figures(in $ billion) Growth (%)
Jan-2025 Jan-2026 Apr-Jan 2024-25 Apr-Jan 2025-26 Jan-2026 over Jan-2025 Apr-Jan 2024-25 over Apr-Jan 2025-26
Engineering exports 9.17 10.36 105.94 111.49 12.90% 5.25%
Overall merchandise exports 36.91 36.61 395.66 402.93 -0.82% 1.84%
Share of engineering (%) 24.86% 28.30% 26.77% 27.67% --- ---
Service Exports 31.65 39.53 351.93 387.93 24.90% 10.23%

Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India.

Engineering Exports: Monthly Trend

The monthly engineering export figures for 2025-26 vis-à-vis 2024-25 are shown below as per the latest DGCI&S estimates:

Table 1: Engineering Exports: Monthly Trend in 2025-26

US$ million

Month 2024-25 2025-26 Growth (%)
April 8557.11 9513.72 11.18
May 9974.13 9889.09 -0.85
June 9386.21 9506.66 1.28
April-June 27917.46 28909.47 3.55
July 9162.17 10433.12 13.87
August 9437.14 9900.7 4.91
September 9826.24 10113.15 2.92
July-September 28425.55 30446.97 7.11
October 11253.08 9372.67 -16.71
November 8897.84 11012.20 23.76
December 10843.35 10981.94 1.28
October-December 30994.27 31369.25 1.21
January 9424.17 10401.80 10.37
February 9174.86 10358.70 12.9
April - February 105936.31 111492.90 5.25

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-February 2025-26

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during January 2026 over January 2025 as well as in cumulative terms during April-January 2025-26 vis-à-vis April-January 2024-25. The data clearly shows that top 25 countries contribute more than 74 % of total engineering exports.

Table 2: Engineering exports country wise

(US$ million)

Countries Jan-2025 Jan-2026 Growth (%) April-February 2024-25 April-February 2025-26 Growth (%)
U S A 1656.57 1575.77 -4.88% 17270.51 17771.62 2.9%
U ARAB EMTS 688.22 591.93 -13.99% 7562.68 7221.03 -4.52%
SAUDI ARAB 323.58 458.5 41.7% 5184.81 4647.54 -10.36%
CHINA P RP 207.45 436.18 110.26% 2451.4 3073.63 25.38%
GERMANY 433.9 430.39 -0.81% 3934.45 4511.59 14.67%
U K 325.16 409.87 26.05% 3584.15 4301.98 20.03%
MEXICO 275.97 314.76 14.06% 3221.76 3080.09 -4.4%
KOREA RP 224.96 309.78 37.7% 2334.98 2786.53 19.34%
ITALY 241.89 276.52 14.32% 2732.27 3194.03 16.9%
SINGAPORE 198.67 269.58 35.69% 4134.7 3939.18 -4.73%
NEPAL 179.47 230.69 28.54% 2033.96 2191.06 7.72%
SOUTH AFRICA 184.25 214.85 16.61% 2292.43 2615.73 14.1%
FRANCE 216.28 205.18 -5.13% 2289.16 2122.77 -7.27%
BRAZIL 176.13 203.42 15.49% 2021.88 2270.64 12.3%
JAPAN 239.52 183.57 -23.36% 2226.7 2399.08 7.74%
NETHERLAND 151.85 170.51 12.29% 1732.74 2041.91 17.84%
TURKEY 183.03 168.35 -8.02% 2791.57 1777.49 -36.33%
VIETNAM SOC REP 98.99 166.72 68.43% 1296.05 1787.98 37.96%
THAILAND 168.51 164.28 -2.51% 1823.56 1972.16 8.15%
SRI LANKA DSR 95.77 162.43 69.61% 1047.76 1600.78 52.78%
INDONESIA 122.44 161.7 32.07% 1808.25 1467.91 -18.82%
CANADA 96.78 161.49 66.87% 1112.9 1273.81 14.46%
SPAIN 97.7 160.02 63.79% 1273.9 1635.45 28.38%
BELGIUM 97.58 139.89 43.36% 1254.34 1595.86 27.23%
AUSTRALIA 90.83 138.3 52.26% 1102.34 1419.24 28.75%
Total engineering exports to top 25 countries 6775.5 7704.7 13.71% 78519.24 82699.09 5.32%
Total engineering exports 9174.86 10358.7 12.9% 105936.31 111492.9 5.25%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

The following table depicts region wise India’s engineering exports for April-January 2026 as compared to April-January 2025

Note: Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.

Region-wise observations:

  • North America: Exports to North America declined mainly due to decline in exports to the US (-6.8%) during January 2026. Within US major decline was noted in exports of iron and steel and products, aluminium and products and auto components all of which are under Section 232 tariff. Apart from this, exports also declined in electrical machinery and industrial machinery
  • SSA: Decline in exports to SSA was mainly sue to falling exports in Nigeria. Exports of two and three wheelers, products of iron and steel, industrial and electrical machinery recorded significant dip in exports to Nigeria
  • Latin America: Exports to Latin America declined by 2.1% mainly due to some exports decline to Chile and Argentina
  • CIS: In CIS region, exports to Russia declined by around 8% which also contributed towards decline in exports to the CIS
  • WANA: On a positive note After registering decline in the last month, exports to WANA again registered significant growth this month mainly due to growing exports in both UAE and Saudi Arabia
Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-February 2024-2025

(US$ million)

Regions Jan-2025 Jan-2026 Growth (%) April-February 2024-25 April-February 2025-26 Growth (%)
NORTH AMERICA 2029.32 2052.03 1.12% 21605.17 22125.51 2.41%
EUROPEAN UNION 1709.62 1822.01 6.57% 18289.1 19923.99 8.94%
WANA 1477.26 1532.63 3.75% 17751.12 17077.53 -3.79%
N E ASIA 766.37 1008.26 31.56% 7919.93 9337.86 17.9%
ASEAN 731.68 958.68 31.02% 11253.4 11624.32 3.3%
SSA( Sub Saharan Africa) 677.2 866.13 27.9% 7880.36 9058.37 14.95%
OTHER EUROPE 530.37 630.93 18.96% 6829.06 6540.46 -4.23%
SOUTH ASIA 531.07 592.65 11.6% 5881.25 6144.47 4.48%
LATIN AMERICA 465.72 588.05 26.27% 5586.2 6382.05 14.25%
OCEANIA 97.91 148.22 51.39% 1232.03 1558.04 26.46%
CIS 150.23 140.22 -6.66% 1649.46 1560.79 -5.38%
OTHERS 8.1 18.9 133.28% 59.18 159.51 169.53%

Note : *Figures have been rounded off.

Source : DGCI&S **Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.

PRODUCT PANEL WISE ENGINEERING EXPORTS

Sectoral Observations:

India’s engineering exports grew by about 4.52% in April–January 2025-26 to around US$101.13 billion, with mixed performance across panels:

  • Exports of iron and steel rose by 10.6% during April–January 202526, supported by higher shipments of primary steel, while products of iron and steel grew at a slower 5%. Overall, India’s steel exports rose 8% to US$17.28 billion during April–January 202526, supported by strong demand from the USA, UAE, EU markets (Italy, UK, Belgium, Germany, Netherland, Spain), Nepal and select WANA destinations (Saudi Arabia, Oman).

As reflected in the BigMint assessment, India’s crude steel production rose sharply by 10.6% yearonyear during 10MFY’26, supported by a 9.7% increase in finished steel output. However, domestic consumption grew at a slower pace of 6.6% due to an extended monsoon and unseasonal rains that disrupted construction and infrastructure activity—the country’s largest steelconsuming segments. With domestic demand subdued, mills increasingly shifted volumes to export markets, where realisations remained more favourable than domestic prices. Strong buying from the EU ahead of the CBAM phasein further sustained India’s export momentum, helping offset the weakness in local demand.

  • The non-ferrous metals panel emerged as a major growth driver, with exports rising by 15.7% to US$11.44 billion during April–January 202526. Among which,
  1. Aluminium and aluminium products witnessed a marginal growth of 1% to US$5.77 billion in April-Jan 2026 from US$5.71 billion during April-Jan 2025. Export performance was supported by stronger shipments to Vietnam, the USA, Japan and Italy, although declines were observed in markets such as Korea (Rep.), Mexico and Turkey. On the pricing front, BigMint data indicates that domestic aluminium prices in India firmed up week?on?week, reflecting the rise in LME and MCX aluminium futures amid ongoing global supply concerns.
  2. Copper and copper products registered a robust 49% increase, rising to US$ 2.88 billion from US$ 1.94 billion. Export growth was supported by strong demand from China, Saudi Arabia, Korea (Rep.), the UAE, key EU markets, and Nepal. On the pricing front, BigMint data shows that imported copper scrap prices in India climbed sharply week?on?week, tracking a rebound in LME copper futures, while domestic scrap prices also firmed on higher replacement costs and improving sentiment, despite cautious buying. Middle East?origin Birch Cliff scrap was assessed at US$ 12,795/t CFR Mundra, up 9.8% w?o?w, while Brass Honey prices strengthened across origins—European-origin material at US$ 7,730/t (up 9.4% w?o?w) and Middle East?origin at US$ 8,295/t (up 7% w?o?w).
  3. Lead and lead products rose significantly to US$1.06 billion (+43%), while tin products expanded to US$34.2 million (+85%), albeit on a low base.
  • Exports of industrial machinery increased by 12% to US$18.32 billion during April–January 202526, driven by strong demand for Industrial Machinery like Boilers, Air-condition and Refrigeration machinery, Machine tools, reflecting rising global investment in automation and manufacturing. However, exports of IC engines and parts grew only moderately.
  • Exports of electrical machinery grew by 8% to US$12.73 billion, supported by demand for power equipment, switchgear, and transmission-related products.
  • The automobile sector recorded robust growth of 20%, with exports reaching US$22.10 billion, led by South Africa, Mexico, Saudi Arabia, UAE, Japan, Brazil, Germany and Colombia and, reflecting sustained demand for vehicles and components. In South Asia, a strong rebound in Sri Lanka and Nepal boosted exports. However, shipments to USA, Turkey and Indonesia moderated
  • Exports of other engineering products rose by 11% to US$12.94 billion, supported by strong growth in railway transport equipment, bicycle parts, office equipment, and construction machinery. In contrast, medical and scientific instruments saw a marginal growth.

 

Table 4a. Trend in exports of iron and steel and its products

(US$ million)

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
IRON AND STEEL 688.75 844.21 22.57% 8440.97 9415.03 11.54%
PRODUCTS OF IRON AND STEEL 831.53 837.35 0.7% 9135.56 9548.63 4.52%
Sub Total 1520.28 1681.56 11% 17576.53 18963.66 8%

Source : DGCI&S

Table 4b. Trend in exports of Non-Ferrous Metals and Products

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
Aluminium and products made of Aluminium 494.85 595.53 20.34% 6200.85 6362.97 2.61%
Copper and products made of copper 171.68 338.11 96.94% 2114.66 3225.44 52.53%
Lead and products made of Lead 93.48 100.97 8.01% 836.73 1164.16 39.13%
Nickel and products made of Nickel 16.49 17.87 8.42% 169.38 167.95 -0.85%
Other Non Ferrous Metals and their products 71.07 89.67 26.16% 784.5 946.08 20.6%
Tin and products made of Tin 1.04 8.84 752.82% 19.58 43.08 120.01%
Zinc and products made of zinc 57.92 83.5 44.15% 675.93 768.93 13.76%
Sub Total 906.53 1234.48 36% 10801.63 12678.6 17%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor 164.09 205.89 25.48% 1744.3 2052.02 17.64%
IC Engines and Parts 344.65 327.11 -5.09% 3485.85 3771.14 8.18%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 685.05 751.39 9.68% 7457.54 8238.29 10.47%
Machine Tools 72.44 67.48 -6.85% 724.86 822.83 13.52%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 242.4 257.9 6.39% 2558.73 2836.95 10.87%
Nuclear Reactors, Industrial Boilers and Parts 74.06 89.71 21.12% 754.08 932.11 23.61%
Pumps of all types 124.51 129.27 3.82% 1407.59 1500.27 6.58%
Sub Total 1707.2 1828.74 7.12% 18132.95 20153.61 11.14%

Source : DGCI&S

Table 4d. Trend in exports of Electrical Machinery and Equipment

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
Electric Machinery and Equipment 1224.03 1301.46 6.33% 12992.9 14027.87 7.97%

Source : DGCI&S

Table 4e. Trend in exports of Auto and auto parts

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
AUTO COMPONENTS/PARTS 654.441 711.473 8.71% 7399.807 7831.015 5.83%
AUTO TYRES AND TUBES 236.531 262.552 11% 2781.476 2916.417 4.85%
Motor Vehicle/cars 716.989 1004.641 40.12% 8092.935 10093.592 24.72%
Two and Three Wheelers 265.642 358.863 35.09% 2902.877 3599.577 24%
Sub Total 1873.604 2337.529 24.76% 21177.095 24440.601 15.41%

Source : DGCI&S

Table 4f. Trend in exports of aircraft, spacecraft and parts and ships, boats and floating structures

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
Aircrafts, Spacecrafts and Parts 341.56 143.37 -58.02% 6730.69 1499.29 338.96%
Ships, Boats and Floating Structures 222.44 332.89 49.66% 4041.55 3729.74 1576.75%
Sub Total 564 476.27 -15.55% 10772.24 5229.03 -51.46%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels February-2025 February-2026 Growth April-February 2024-25 April-February 2025-26 Growth
BICYCLE AND PARTS 36.62 39.7 8.44% 364.61 431.55 18.36%
Hand Tools, Cutting Tools and Implements made of Metals 80.99 82.4 1.74% 941.72 933.84 -0.84%
Medical and Scientific Instruments 314.97 246.54 -21.73% 2623.48 2603.1 -0.78%
OFFICE EQUIPMENTS 19.99 35.7 78.64% 256.32 364.53 42.22%
OTHER CONSTRUCTION MACHINERY 258.01 325.8 26.27% 2726.11 3306.26 21.28%
OTHER MISC. ITEMS 421.29 483.45 14.76% 4623.8 5172.75 11.87%
PRIME MICA AND MICA PRODUCTS 2.17 1.85 -14.62% 28.1 27.03 -3.8%
Railway Transport and Parts 22.25 48.14 116.4% 329.02 460.53 39.97%
PROJECT GOODS 0.18 0.12 -34.57% 2.32 1.74 -24.74%
OTHR RUBBER PRODCT EXCPT FOOTW 136.79 149.96 9.63% 1607.47 1706.04 6.13%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

We now analyze the performance of some of the important products for the fiscal April-January 2025-26 vis-à-vis April- January 2024-25. We have taken the major panels and computed the top importing countries to get an idea of the current trade pattern.

Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-February 2024-25 April-February 2025-26 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 3306.78 3399.56 3%
U ARAB EMTS 1402.36 1422.07 1%
ITALY 1225.91 1403.02 14%
U K 794.55 799.15 1%
NEPAL 812.78 764.44 -6%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
U S A 1360.66 1616.87 19%
SAUDI ARAB 690.81 1218.02 76%
KOREA RP 881.94 1158.26 31%
CHINA P RP 567.95 1009.72 78%
VIETNAM SOC REP 380.25 645.4 70%
Industrial Machinery
U S A 3790.94 3965.04 5%
U ARAB EMTS 885.33 1209.99 37%
GERMANY 803.15 893.32 11%
CHINA P RP 784.52 854.41 9%
SAUDI ARAB 601.55 714.71 19%
Electrical Machinery
U S A 2467.93 2705.88 10%
U K 1047.72 1399.94 34%
SINGAPORE 1405.31 1381.71 -2%
GERMANY 886.01 992.84 12%
KOREA RP 601.31 758.46 26%
Automobiles
U S A 2184.56 2065.88 -5%
SOUTH AFRICA 1474.3 1718.77 17%
MEXICO 1651.78 1712.35 4%
SAUDI ARAB 1471.75 1544.7 5%
U ARAB EMTS 1022.68 1252.3 22%
Aircrafts and Spacecraft parts and products
U S A 408.63 458.19 12%
FRANCE 721.02 276.66 -62%
U K 138.83 170.45 23%
GERMANY 69.75 87.62 26%
SINGAPORE 74.21 65.2 -12%
Ships Boats and Floating products and parts
U ARAB EMTS 1030.25 1253.61 22%
SINGAPORE 1706.98 1232.6 -28%
SRI LANKA DSR 236.59 334.46 41%
CHINA P RP 0.01 161.13 1332694%
INDONESIA 306.38 145 -53%
Project Goods
U S A 0.37 0.43 18%
FRANCE 0.03 0.27 781%
U K 0.01 0.16 2342%
NIGERIA 0.03 0.12 248%
OMAN 0.01 0.1 1361%
Other Rubber Product Except Footwear
U S A 365.95 352.45 -4%
GERMANY 102.08 124.1 22%
U ARAB EMTS 69.45 75.46 9%
CHINA P RP 60.29 68.36 13%
NETHERLAND 60.78 58.97 -3%
Other engineering products
U S A 2717.61 2867.62 6%
U ARAB EMTS 548.78 714.38 30%
GERMANY 680.7 699.03 3%
U K 551.38 625.02 13%
BRAZIL 328.37 363.44 11%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

State wise engineering export performance

State wise engineering export performance- Data as on 2025-26

The table below indicates the exports from top Indian states. It is evident from the table that almost 95% of India’s exports is contributed by the listed 12 states. Within this almost more than 60 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together during April-December 2025-26

Maharashtra leads with 25.1 billion USD in engineering exports (April-December 2025-26), up 9% from 23 billion USD, securing a 27% national share through its robust ecosystem in engineering goods. West Bengal recorded marginal 2% growth reaching US$ 3.4 billion, holding a 4% share. Odisha achieved 17% growth to 3.7 billion USD (4% share) during April-December 2025-26. Karnataka achieved the highest growth of 43% during April-December 2025-26 reaching US$ 5.1 billion holding a share of 6%. Delhi contracted 9% to US$5.2 bn (6% share) and Andhra Pradesh fell 19% to US$ 3.2 bn (4% share), while Punjab was flat. Overall, growth remains concentrated in the western–southern hubs. 

Table 6: Top state wise engineering export performance - April-January 2025-26

(US$ million)

Top States Cumulative Export April-January 2025-26 Share % Remark
Maharashtra 27986 27.43% 91.5% share covered by top 12 states
Tamil Nadu 19795.9 19.4%
Gujarat 15535.6 15.22%
Delhi 5793.3 5.68%
Karnataka 5720 5.61%
Haryana 4280.7 4.19%
Odisha 4186.5 4.1%
West Bengal 3820.7 3.74%
Andhra Pradesh 3676.9 3.6%
Uttar Pradesh 2805.4 2.75%
Punjab 1791.3 1.76%
Rajasthan 1375.4 1.35%
Telangana 1232.8 1.21%
Bihar 1129.2 1.11%
Kerala 1022.8 1%
Goa 764.7 0.75%
Madhya Pradesh 653.7 0.64%
Uttarakhand 409.6 0.4%
Assam 43.6 0.04%
Puducherry 13.8 0.01%
Himachal Pradesh 3.2 0%
Others 2.1 0%
Chhattisgarh 0 0%
Jammu & Kashmir 0 0%
Meghalaya 0 0%

Source : DGCI&S

Region wise engineering exports

India’s region-wise engineering exports (DGCIS) rose approximately 4% to US$ 91.5 bn in Apr–Dec 202526, led by the Western Region at US$ 40.1 bn (+13%, 43.8% share), which more than offset a contraction in the Southern Region to US$ 28.5 bn (–6%, 31.1% share). The Northern Region inched up marginally by 1% to US$ 14.8 bn (16.2% share), while the Eastern Region posted steady growth of 8% to US$8.2 bn (8.9% share). Overall, exports remain highly concentrated in the West and South (~75% share), with the West acting as the primary growth engine this period.

Note : DGCI&S state wise data available till Jan-2026

Table 7: Region wise exports from India till Jan-2026

Value in US$ million

Region Apr-Jan 2024-25($Mn) Apr-Jan 2025-26 ($Mn) Growth %
SOUTHERN REGION 33461.9 31462.2 -5.98%
EASTERN REGION 8386.6 9180 9.46%
WESTERN REGION 39440.5 44940 13.94%
NORTHERN REGION 16253 16458.9 1.27%
Others 0 2.1 0%
Grand Total 97542 102043.2 4.61%

CORRELATION BETWEEN MANUFACTURING PRODUCTION AND ENGINEERING EXPORTS

Engineering forms a considerable part of the broader manufacturing sector and the share of engineering production in overall manufacturing output is quite significant. As exports generally come from what is produced within a country, some correlation between manufacturing production growth and engineering export growth should exist. We briefly look at the trend in manufacturing growth as also engineering export growth to see if they move in tandem. It may be mentioned that manufacturing has 77.63% weightage in India’s industrial production.

Engineering export growth and manufacturing output growth moved in the same direction in as many as nine out of twelve months in each of the fiscal years 2019-20 and 2020-21. During fiscal 2021-22, engineering export growth and manufacturing growth moved in the same direction in seven out of twelve monthswhile in each of fiscal 2022-23 and 2023-24, as many as 10 out of 12 months saw engineering exports and manufacturing output moved in the same direction. In 2024-25, both moved in the same direction in eight out of 12 months.

The first two month of fiscal 2025-26 saw engineering export growth and manufacturing output growth moved in the opposite direction. In April, engineering export growth surged to double digit and manufacturing growth decelerated, while in May engineering export declined and manufacturing output growth inched up over the month. Then, In June, July and August 2025 however, both moved on the same direction. In June and July, both witnessed improvement in growth while in Aug 2025, both conceded moderation in growth. In September 2025 however, engineering growth continued to slowdown but manufacturing growth accelerated. October 2025 saw both going down with decline in engineering exports while Novbemebr 2025 witnessed surged in both with substantially higher growth. In December 2025 however, while engineering exports grew, the growth rate slowed down whereas the manufacturing growth rate was maintained

The link between these two may not be established in one or two months, but a positive correlation may be seen if medium to long term trend is considered. 

Table 8: Engineering exports growth vis-à-vis manufacturing growth from April 2020
Months/ Year Engg. Export Growth (%) Manufacturing Growth (%)
April 2020 -63.05 -66.6
May 2020 -22.17 -37.8
June 2020 -5.18 -17.0
July 2020 10.56 -11.4
August 2020 -7.01 -7.6
September 2020 4.09 0.4
October 2020 -5.01 4.5
November 2020 -8.37 -1.6
December 2020 -0.93 2.7
January 2021 16.66 -0.9
February 2021 -4.94 -3.4
March 2021 67.75 28.3
April 2021 236.85 196.0
May 2021 50.21 32.1
June 2021 51.00 13.2
July 2021 42.57 10.5
August 2021 58.63 11.1
September 2021 35.11 4.3
October 2021 51.76 3.3
November 2021 37.28 0.3
December 2021 47.42 0.6
January 2022 25.63 1.9
February 2022 35.49 0.2
March 2022 19.72 1.4
April 2022 18.30 5.6
May 2022 11.45 20.6
June 2022 3.01 13.0
July 2022 -0.03 3.2
August 2022 -12.64 -0.5
September 2022 -11.39 2.0
October 2022 -19.68 -5.8
November 2022 0.09 6.7
December 2022 -11.60 3.6
January 2023 -9.76 4.0
February 2023 -9.73 5.6
March 2023 -7.49 0.5
April 2023 -7.27 5.5
May 2023 -4.13 6.3
June 2023 -10.94 3.5
July 2023 -6.65 5.0
August 2023 7.83 9.3
September 2023 6.81 4.5
October 2023 7.20 N A
November 2023 -3.48 1.2
December 2023 9.82 4.5
January 2024 4.21 3.6
February 2024 15.9 5.0
March 2024 10.66 N A
April 2024 -4.49 3.9
May 2024 7.41 4.6
June 2024 10.27 N A
July 2024 3.66 4.6
August 2024 4.26 1.0
September 2024 9.44 3.9
October 2024 38.39 4.1
November 2024 13.72 5.5
December 2024 8.33 3.4
January 2025 7.46 5.5
February 2025 -8.64 2.9
April 2025 -3.92 3.0
May 2025 -0.80 2.6
June 2025 1.28 2.9
July 2025 13.86 5.4
August 2025 4.90 3.8
September 2025 2.93 4.8
October 2025 -16.72 1.8
November 2025 23.79 8.0
December 2026 1.29 8.4

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during January 2026 and what was the recent trend in Re-Dollar movement? In order to get a clearer picture of the recent Re-Dollar trend, not only we took the exchange rate of January 2026, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2023-24, 2024-25 and fiscal 2025-26 as per the latest data published, as mere one-month figure does not reflect any trend. The following two tables clearly depicts the short-term trend.

Fig 3: Trend of Rupee vis-a-vis US dollar from April 2020

(Monthly Average Rate of FBIL has been considered)

Source : FBIL

Table 9: USD-INR monthly average exchange rate in 2025-26 vis-à-vis 2024-25

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR) Year-on-Year Change (%) Direction Month-on-Month Change (%) Direction
Month 2024-25 2025-26
April 83.41 85.56 2.58 Depreciation -1.25 Appreciation
May 83.39 85.19 2.16 Depreciation -0.43 Appreciation
June 83.47 85.90 2.91 Depreciation 0.83 Depreciation
July 83.59 86.11 3.01 Depreciation 0.24 Depreciation
August 83.90 87.52 4.31 Depreciation 1.64 Depreciation
September 83.81 88.32 5.38 Depreciation 0.91 Depreciation
October 84.03 88.42 5.22 Depreciation 0.11 Depreciation
November 84.36 88.83 5.30 Depreciation 0.46 Depreciation
December 84.99 90.09 6.00 Depreciation 1.42 Depreciation
January 86.26 90.80 5.25 Depreciation 0.79 Depreciation
February 87.05 90.77 4.27 Depreciation -0.03 Appreciation

Indian Rupee continued to remain below 90 per US Dollar and conceded 5.25 percent depreciation vis-à-vis the greenback in January 2026: Depreciation of Indian Rupee continued vis-à-vis the US Dollar for the eighth straight month to January 2026 on a monthly while on a yearly basis, the depreciation continued since last fiscal. INR depreciated vis-à-vis the US Dollar by 0.78 percent in January 206 over the previous month. Despite of intermittent intervention by the RBI, uncertainty on trade deal with the USA and capital outflow from Indian markets continued to weigh on rupee. Increase in gold import was also sighted as one of the reasons for weakening of rupee.

Table 10: USD-INR monthly average exchange rate in 2024-25 vis-à-vis 2023-24

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR) Year-on-Year Change (%) Direction Month-on-Month Change (%) Direction
Month 2023-24 2024-25
April 82.02 83.41 1.69 Depreciation 0.49 Depreciation
May 82.34 83.39 1.28 Depreciation -0.02 Appreciation
June 82.23 83.47 1.51 Depreciation 0.10 Depreciation
July 82.15 83.59 1.75 Depreciation 0.14 Depreciation
August 82.79 83.89 1.33 Depreciation 0.36 Depreciation
September 83.05 83.81 0.92 Depreciation -0.10 Depreciation
October 83.24 84.02 0.94 Depreciation 0.25 Depreciation
November 83.30 84.36 1.27 Depreciation 0.40 Depreciation
December 83.28 84.99 2.05 Depreciation 0.75 Depreciation
January 83.14 86.27 3.76 Depreciation 1.51 Depreciation
February 82.96 87.05 4.93 Depreciation 0.90 Depreciation
March 83.00 86.64 4.39 Depreciation -0.47 Appreciation

Source : FBIL, EEPC Research

TREND IN ENGINEERING TRADE BALANCE

We now present the trend in two-way yearly trade for the engineering sector for the 2025-26 depicted in the table below:

Table 11: Monthly Trend in Engineering Trade Balance for the current FY

(US$ million)

Trade Flow April May June July August September October November December January February
Engineering Export 9.5 9.9 9.5 10.4 9.9 10.1 9.4 11.0 11.0 10.4 10.4
Engineering Import 13.4 13.8 11.5 14.0 13.2 13.4 13.8 13.5 14.0 14.0 12.9
Trade Balance -3.9 -3.9 -2.0 -3.6 -3.3 -3.3 -4.4 -2.5 -3.0 -3.6 -2.5

Source : DGCI&S

TO CONCLUDE...

In January 2026, India’s engineering exports bounced back with a double digit growth rate after registering very slow growth last month. While low export base remains one of the major reason behind this growth, Indian engineering exports also bounced back in most of the regions. This is a very positive news specially at a time when the global trade is going through realignments pushed by changing geopolitics. As per the recent update by the UNCTAD, as we enter 2026, global trade is subjected to increasing pressure from several factors including slower growth, geopolitical fragmentation, accelerating digital and green transitions and tighter national regulations - UNCTAD estimates global growth will remain subdued at 2.6 per cent in 2025 and 2026, despite potential gains from technologies such as artificial intelligence. In this situation, we are hopegul that India’s engineering export performance will continue in a growth path. Finally, the recent schemes announced by the Government especially the Market Access Scheme is estimated to be a big enabler of Indian exports. This is crucial at a time when more Indian exporters are eager to participate in global exhibitions and exhibit their products to global markets.