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August 2026
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Engineering exports continued to grow in 2026-27 after achieving record high in 2025-26

Indian engineering exports rose to its all-time high for second consecutive fiscal year in 2025-26 despite several external adversities. This is the third time in last five fiscal years after the Pandemic when Indian engineering achieved its all-time high exports.
During fiscal 2025-26, engineering shipment from India was recorded at an all-time high of USD 122.43 billion as against USD 116.75 billion in the previous fiscal, registering a growth of 4.86%.
The month of March 2026 witnessed 1.13% growth in engineering export over March 2026 even at the time of extreme supply disruption following the Iran War and subsequent closure of the Strait of Hormuz.
Engineering shipment from India in March 2026 rose to USD 10.94 billion from 10.82 billion in March 2025.
As per the quick estimates of the government, Engineering is the largest component of merchandise exports with a rising share that is recorded at 27.71% during fiscal 2025-26. The share in March 2026 is even better at 28.11%.
Among the 34 product panel as defined by the DGCI&S, as much as 26 product panels achieved year-on-year growth in exports during fiscal 2025-26 while only eight conceded decline over the previous fiscal.
During the fiscal 2025-26, exports of Copper and its products grew by a substantial 59.2% while Lead and its products grew by 34.2%. Two and three wheelers, and Motor vehicles/cars recorded 24.2% and 23.1% increase respectively.
Among the exporting regions, engineering exports to North America increased by 1.9% while that to European Union increased by a higher 8.6% in 2025-26 over the previous fiscal. Exports to all other regions increased in 2025-26 expect WANA, Other Europe and CIS. While exports to WANA dropped by 8%, engineering shipments to Other Europe and CIS fell by 4.5% and 5.9% year-on-year respectively.
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August-2026 engineering exports hit peak growth for fiscal 2025-2026

Indian engineering once again demonstrated its underlying strength as engineering exports from India rose to its all-time high for second consecutive fiscal year in 2025-26 despite several external adversities. This is the third time Indian engineering achieved its all-time high exports in last five fiscals after the Pandemic. During fiscal 2025-26, engineering shipment from India was recorded at USD 122.43 billion as against USD 116.75 billion in the previous fiscal, registering a growth of 4.86%. The month of March 2026 witnessed 1.13% growth in engineering exports over March 2025 even at the time of extreme supply disruption following the Iran War and subsequent closure of the Strait of Hormuz. Engineering shipment from India rose to USD 10.94 billion in March 2026 from USD 10.82 billion in March 2025. Engineering is the largest component of merchandise exports with a share of 27.71% during fiscal 2025-26. The share in March 2026 is even better at 28.11%. This record high exports of Indian engineering was led by high exports of Motor vehicles/cars, Copper and its products, Iron and steel, Electric machinery and equipment, Two and three wheelers, Products of iron and steel, Industrial machinery, Other construction machinery, and Auto components/parts among others. Among the major exported product groups, ‘Aircraft spacecraft and parts’, ‘Medical and scientific instruments’ and ‘Ships, boats and floating structures’ conceded decline in exports during fiscal 2025-26. Region-wise, North America and European Union remained the top two exported destinations for Indian engineering with shares of 20% and 18% respectively in India's global engineering exports. exports to North America increased by 1.9% while that to European Union increased by a higher 8.6% in 2025-26 over the previous fiscal. Exports to all other regions increased in 2025-26 expect WANA, Other Europe and CIS. While exports to WANA dropped by 8%, engineering shipments to Other Europe and CIS fell by 4.5% and 5.9% year-on-year respectively. Among the top export destination countries, exports to second largest UAE and fourth largest Saudi Arabia slumped by 10% and 13% while exports to USA as the largest consumer increased by 2%. Exports to Germany and UK also increased in double-digit during 2025-26.

Trade Flow Export figures(in $ billion) Growth (%)
Mar-2025 Mar-2026 Apr-Mar 2024-25 Apr-Mar 2025-26 Mar-2026 over Mar-2025 Apr-Mar 2024-25 over Apr-Mar 2025-26
Engineering exports 9.87 12.32 49.10 58.70 24.86% 19.55%
Overall Merchandise exports 34.74 43.81 183.21 215.91 26.12% 17.85%
Share of engineering (%) 28.41% 28.12% 26.80% 27.19% --- ---
Service Exports 31.19 38.87 162.34 183.36 24.62% 12.95%

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 9515.77 10351.01 8.78
May 9890.43 12311.33 24.48
June 9506.71 11478.69 20.74
April-June 28912.91 34143.99 18.09
July 10399.9 12242.18 17.71
August 9867.17 12319.81 24.86
April-August 49104.53 58704.34 19.55

Source : DGCIS, Govt. of India

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

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during March 2026 over March 2025 as well as in cumulative terms during April-March 2025-26 vis-à-vis April-March 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 Mar-2025 Mar-2026 Growth (%) April-August 2024-25 April-August 2025-26 Growth (%)
U S A 1679.73 2200.03 30.98% 8631.54 9971.84 15.53%
U K 382.92 492.61 28.64% 1922.58 2299.59 19.61%
GERMANY 412.77 487.97 18.22% 2030.36 2317.74 14.15%
U ARAB EMTS 649.12 475.93 -26.68% 3077.86 3008.27 -2.26%
KOREA RP 220.93 466.06 110.95% 1172.67 1624.69 38.55%
CHINA P RP 242.5 424.65 75.11% 1087.75 1774.28 63.12%
SOUTH AFRICA 309.78 392.97 26.86% 1156.97 1510.96 30.6%
MEXICO 309.2 360.24 16.51% 1385.51 1649.46 19.05%
INDONESIA 103.62 292.3 182.1% 676.61 1031.26 52.42%
ITALY 302.66 285.03 -5.83% 1379.26 1382 0.2%
SINGAPORE 189.98 282.81 48.86% 1780.46 2004.68 12.59%
JAPAN 164.65 278.38 69.08% 1057.94 1399.57 32.29%
AUSTRALIA 127.15 275.97 117.03% 612.1 980.41 60.17%
BRAZIL 216.02 237.47 9.93% 1075 1136.28 5.7%
FRANCE 190.56 233.03 22.29% 930.27 1198.79 28.86%
MALAYSIA 141.09 231.24 63.89% 545.48 1150.86 110.98%
SRI LANKA DSR 127.74 230.84 80.72% 548.48 1323.96 141.39%
NEPAL 211.94 227.09 7.15% 1008.14 1118.84 10.98%
SAUDI ARAB 358.93 224.94 -37.33% 1836.93 1640.67 -10.68%
TURKEY 162.05 224.36 38.45% 862.12 908.93 5.43%
THAILAND 174.78 222.29 27.18% 904.1 926.53 2.48%
OMAN 57.37 197.99 245.11% 340.86 800.01 134.7%
VIETNAM SOC REP 142.46 191.32 34.3% 614.9 1023.52 66.45%
NETHERLAND 194.95 187.52 -3.81% 927.9 979.8 5.59%
BANGLADESH PR 174.75 162.28 -7.14% 862.19 745.45 -13.54%
Total engineering exports to top 25 countries 7247.65 9285.33 28.12% 36428 43908.39 20.53%
Total engineering exports 9867.17 12319.81 24.86% 49104.53 58704.34 19.55%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

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

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

Region-wise observations:

  • Ø North America: Exports to North America declined mainly due to ongoing geopolitical conflicts in Middle East and West Asia region which impacted logistics significantly
  • Ø WANA: The geopolitical confluct also impacted India’s exports to the WANA region as exports came down by almost 50%. It needs to be mentioned here that UAE being a trade-transhipment hub, several Indian exporters also have there warehouses in UAE for further trade with Europe, Africa and the USA. The recent geopolitical conflicts in the region have also impacted these warehouse activities
  • Ø Other Europe: In case of Other Europe, the decline is accunted for by Turkey – in April-March 2025-26, India’s exports to Turkey declined by 35.6% and in March alone the decline was 28.2%.
  • Ø CIS: In CIS region, exports to Russia declined by around 15.1% which also contributed towards decline in exports to the CIS

  • Other Observations:

  • Ø Decline in Mexico continues not only due to the logostics issues but also due to their recently announced trade reforms under which tariffs on over 1,400 products rose sharply—ranging from 5% to 50%—for imports from countries without a Free Trade Agreement (FTA) with Mexico effective from 1st January 2026
  • Ø Another country where India’s exports continued to decline is Bangladesh – major reason can be attributed to their recent tax reforms whereby Bangladesh has withdrawn the existing import duties on steel raw materials and replaced it with a combination of VAT and Advanced Income Tax (AIT) which has increased the effective tax burden on manufacturers using imported steel for further processing by upto 40%. Even in cases of products with zero customs duty, the additional duties increase the cost burden.
  • Ø Amodst the decline, India’s exports performed significantly well in ASEAN as it recorded more than 50% increase and North East Asia where exports increased by 29% during March 2026. Exports also rose for Oceania by more than 5% which may indicate that some trade diversion could be done succesufully towards India’s East as Indian exporters faced logistics issues in the West
Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-August 2024-2025

(US$ million)

Regions Mar-2025 Mar-2026 Growth (%) April-August 2024-25 April-August 2025-26 Growth (%)
NORTH AMERICA 2117.84 2721.76 28.52% 10574.56 12346.6 16.76%
EUROPEAN UNION 1810.33 1958.69 8.2% 8720.95 9742.07 11.71%
ASEAN 840.47 1311.01 55.99% 4998.63 6600.22 32.04%
N E ASIA 714.26 1286.62 80.13% 3807.37 5409 42.07%
WANA 1450.02 1286.27 -11.29% 7080.89 7299.97 3.09%
SSA( Sub Saharan Africa) 888.13 1165.56 31.24% 3882.1 5021.91 29.36%
OTHER EUROPE 584.26 763.63 30.7% 2979.01 3510.14 17.83%
LATIN AMERICA 566.35 754.72 33.26% 2967.46 3459.05 16.57%
SOUTH ASIA 567.19 684.97 20.77% 2692.74 3561.34 32.26%
OCEANIA 139.3 286.91 105.97% 673.17 1042.37 54.84%
CIS 165.46 87.11 -47.35% 655.56 624.09 -4.8%
OTHERS 23.57 12.56 -46.7% 72.09 87.57 21.48%

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

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

Sectoral Observations:

India’s engineering exports grew by about 4.86% in April–March 2025-26 to around US$ 122.43 billion, with mixed performance across panels:

a) Exports of iron and steel rose by 11.5% during April–March 202526, supported by higher shipments of primary steel, while products of iron and steel grew at a slower 2.4%. Overall, India’s steel exports rose 7% to US$20.67 billion during April–March 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), Turkey, Korea Rep, China and Taiwan, etc.

As reflected in the Ministry of steel figures, India’s crude steel production rose sharply by 10.7% yearonyear during April-March 2025-26, supported by a 9.7% increase in finished steel production as well as 7.6% increase in finished steel consumption. Therefore consumption grew at a slower pace due to disrupted construction and infrastructure activity—the country’s largest steelconsuming segments. The growth figures highlights India's resilience and continued strength in steel production despite global fluctuations.

b) The non-ferrous metals panel emerged as a major growth driver, with exports rising by 18.8% to US$14.19 billion during April–March 202526. Only exports of Lead declined by 4% mainly due to decline in exports to South Korea. However, overall exports to Korea in Fy 2025-26 remained positive at 23%

c) Exports of industrial machinery increased by 9.2% to US$22.13 billion during April–March 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.

d) Exports of electrical machinery grew by 7% to US$15.36 billion, supported by demand for power equipment, switchgear, and transmission-related products.

e) The automobile sector recorded robust growth of 14.3%, with exports reaching US$26.83 billion, led by South Africa, Mexico, UAE, Brazil, Germany, Colombia and most importably Sri Lanka witnessing more than 300% growth, reflecting sustained demand for vehicles and components. Therefore, South Asia, witnessed a strong rebound in Bangladesh, Sri Lanka and Nepal that boosted auto and auto components and parts exports. However, shipments to USA, Saudi Arabia, Turkey and Indonesia decelerated

Exports of other engineering products rose by 12.2% to US$15.59 billion, supported by strong growth in office equipment, railway transport equipment, construction machinery, bicycle parts. In contrast, medical and scientific instruments and hand tools and cutting tools witnessed a decline of 3% and 2% respectively during April-March 2025-26.

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

(US$ million)

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
IRON AND STEEL 841.53 1279.12 52% 4036.63 5489.21 35.98%
PRODUCTS OF IRON AND STEEL 890.16 933.68 4.89% 4375.34 4374.1 -0.03%
Sub Total 1731.68 2212.8 28% 8411.97 9863.31 17%

Source : DGCI&S

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

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
Aluminium and products made of Aluminium 543.87 736.16 35.36% 2571.72 3819.97 48.54%
Copper and products made of copper 226.83 598.96 164.05% 1024.9 2067.41 101.72%
Lead and products made of Lead 96.23 58.59 -39.11% 442.07 334.82 -24.26%
Nickel and products made of Nickel 15.88 18.09 13.95% 70.82 89.01 25.68%
Other Non Ferrous Metals and their products 85.29 97.18 13.95% 436.99 494.62 13.19%
Tin and products made of Tin 2.82 7.23 156.52% 12.52 33.58 168.1%
Zinc and products made of zinc 57.96 61.19 5.56% 257.88 371.93 44.23%
Sub Total 1028.88 1577.41 53% 4816.91 7211.34 50%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
Air condition and Refrigeration Machinery and Parts, Industrial Furnaces, Water heaters and Centrifuges and Compressor 179.8 219.18 21.9% 924.67 1022.04 10.53%
IC Engines and Parts 350.63 414.62 18.25% 1767.64 1830.39 3.55%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc 760.24 760.74 0.06% 3712.68 3859.61 3.96%
Machine Tools 85.31 71.23 -16.5% 389.72 365.23 -6.29%
Machinery for ATMs, Injecting Moulding machinery, valves, etc 258.37 274.07 6.08% 1288.15 1325.63 2.91%
Nuclear Reactors, Industrial Boilers and Parts 86.23 211.54 145.33% 394.45 575.4 45.87%
Pumps of all types 133.07 155.21 16.63% 657.39 707.18 7.57%
Sub Total 1853.65 2106.6 13.65% 9134.7 9685.49 6.03%

Source : DGCI&S

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

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
Electric Machinery and Equipment 1151.17 1595.2 38.57% 6381.79 7992.11 25.23%

Source : DGCI&S

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

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
AUTO COMPONENTS/PARTS 766.221 851.492 11.13% 3646.74 3904.975 7.08%
AUTO TYRES AND TUBES 254.226 295.827 16.36% 1328.275 1419.175 6.84%
Motor Vehicle/cars 1017.688 1049.774 3.15% 4353.944 4912.085 12.82%
Two and Three Wheelers 347.13 426.169 22.77% 1561.915 1989.336 27.37%
Sub Total 2385.265 2623.262 9.98% 10890.873 12225.571 12.26%

Source : DGCI&S

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

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
Aircrafts, Spacecrafts and Parts 135.22 162.96 20.51% 673.44 781.75 478.13%
Ships, Boats and Floating Structures 94.59 367.8 288.82% 1707.01 3084.77 3161.03%
Sub Total 229.82 530.76 130.95% 2380.45 3866.53 62.43%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels August-2025 August-2026 Growth April-August 2024-25 April-August 2025-26 Growth
BICYCLE AND PARTS 42.97 47.02 9.43% 196.09 214.31 9.29%
Cranes, Lifts and Winchescopper 94.19 106.68 13.26% 469.44 473.09 0.78%
Hand Tools, Cutting Tools and Implements made of Metals 88.95 99.64 12.02% 444.88 474.14 6.58%
Medical and Scientific Instrumentsents 239.68 283.11 18.12% 1191.86 1294.84 8.64%
OFFICE EQUIPMENTS 34.48 33.11 -3.97% 159.54 146.57 -8.13%
OTHER CONSTRUCTION MACHINERY 298.73 322.91 8.09% 1416.18 1604.75 13.32%
OTHER MISC. ENGINEERING ITEMS 466.46 538.14 15.37% 2207.53 2488.89 12.75%
PRIME MICA AND MICA PRODUCTS 2.92 3.23 10.58% 13.7 14.41 5.16%
Railway Transport and Parts 52.55 52.58 0.05% 190.8 285.79 49.79%
PROJECT GOODS 0.15 0.2 38.23% 0.57 0.81 42.46%
OTHR RUBBER PRODCT EXCPT FOOTW 165.63 187.16 13% 797.26 862.39 8.17%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

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

  •  In April-March 2025-26, Italy, USA and Nepal ranked as the top three importers of Indian Iron and Steel, while the USA, UAE and Germany lead in import of products of Iron & Steel.
  •  The USA stood out as the primary importer of Indian 'Industrial machinery,' making up 20% of India's global exports in this category, followed by UAE and Germany with 6% ad 4% shares, respectively during April-March 2025-26.
  •  South Africa, Saudi Arab, Mexico, Japan and UAE were top importers of India's Automobiles during April-March 2025-26 in India’s global exports respectively over the same period previous fiscal. 
  •  USA, Saudi Arab, South Korea, China and Vietnam were the top importers of India's Non-ferrous metals and products during April-March 2025-26.
  •  USA, Singapore, UK and Germany were the top importers of Indian Electrical Machinery & Components during the same period with  19%, 10%, 10% and 7% shares respectively.
  •  USA, France, UK, Germany and Singapore were the top importers of India's Aircrafts and Spacecraft during April-March 2025-26, making up to 70% of India’s total export of Aircrafts and Spacecraft.
  •  Singapore, UAE and Sri Lanka became the largest importer of ships, boats and floating structures followed by Oman and China during April-March 2025-26.
  • For the auto components’ product group, USA remained the top importer in April-March 2025-26 followed by Germany, Brazil, UAE and Bangladesh, making up to 41% of India’s total export under this category.
Table 5: Export of Different Panels

(US$ million)

Product panels Top 5 nations April-August 2024-25 April-August 2025-26 Growth (%)
Iron and Steel and Products made of Iron and Steel
U S A 1663.2 2319.51 39%
U ARAB EMTS 577.28 596.85 3%
ITALY 598.97 482.75 -19%
U K 331.13 450.74 36%
NEPAL 341.08 391.23 15%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
U S A 750.98 956.33 27%
KOREA RP 432.81 694.27 60%
CHINA P RP 286.31 627.64 119%
SAUDI ARAB 383.41 473.06 23%
JAPAN 148.5 307.23 107%
Industrial Machinery
U S A 1941.72 2052.74 6%
AUSTRALIA 169.38 468.44 177%
CHINA P RP 357.05 445.22 25%
GERMANY 412.46 419.73 2%
U ARAB EMTS 507.65 375.05 -26%
Electrical Machinery
U S A 1347.87 1435.29 6%
SINGAPORE 608.1 837.06 38%
U K 667.22 693.12 4%
GERMANY 461.45 573.08 24%
MALAYSIA 138.47 540.42 290%
Automobiles
U S A 989.79 1141.09 15%
MEXICO 806.26 927 15%
SOUTH AFRICA 785.17 871.33 11%
SAUDI ARAB 682.15 477.89 -30%
JAPAN 426.28 470.16 10%
Aircrafts and Spacecraft parts and products
U S A 199.7 251.75 26%
FRANCE 122.23 127.44 4%
U K 78.17 69.34 -11%
MALDIVES 0.57 60.1 10361%
MALAYSIA 21.23 36.98 74%
Ships Boats and Floating products and parts
U ARAB EMTS 559.68 986.05 76%
SINGAPORE 690.36 656.08 -5%
SRI LANKA DSR 90.79 502.97 454%
OMAN 65.94 246.99 275%
INDONESIA 96.23 164.71 71%
Project Goods
U S A 0.1 0.26 158%
SUDAN 0 0.1 N/A
FRANCE 0.05 0.09 83%
BELGIUM 0 0.04 4585%
BHUTAN 0 0.03 573%
Other Rubber Product Except Footwear
U S A 185.52 176.47 -5%
GERMANY 56.65 56.28 -1%
CHINA P RP 31.55 44.89 42%
THAILAND 18.85 33.06 75%
U ARAB EMTS 32.16 31.73 -1%
Other engineering products
U S A 1550.76 1635.12 5%
U K 308.11 364.2 18%
GERMANY 323.77 333.24 3%
U ARAB EMTS 332.58 244.37 -27%
BRAZIL 179.84 195.64 9%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

State wise engineering export performance

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

Note: DGCI&S State figures are updated till the month of January 2026

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-January 2025-26

Maharashtra leads with 28 billion USD in engineering exports (April-Jan 2025-26), up by 10% from 25.5 billion USD, securing a 27% national share through its robust ecosystem in engineering goods. West Bengal recorded marginal 3% growth reaching US$ 3.8 billion, holding a 4% share. Odisha achieved 18% growth to 4.2 billion USD (4% share) during April-January 2025-26. Karnataka achieved the highest growth of 43% during April-January2025-26 reaching US$ 5.7 billion holding a share of 6%. Delhi contracted 8% to US$5.8 bn (6% share) and Andhra Pradesh fell 14% to US$ 3.7 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 9002.263806 19.41% 91% share covered by top 12 states
Gujarat 7199.068705 15.52%
Tamil Nadu 7180.333669 15.48%
Karnataka 3863.537776 8.33%
Haryana 3161.612301 6.82%
Odisha 3068.907955 6.62%
Delhi 1962.643404 4.23%
Uttar Pradesh 1581.200954 3.41%
West Bengal 1559.072079 3.36%
Rajasthan 1296.695018 2.8%
Andhra Pradesh 1253.307249 2.7%
Punjab 1005.792055 2.17%
Telangana 902.1049198 1.94%
Madhya Pradesh 743.8499594 1.6%
DADRA,NH,DAMAN,DIU 666.649629 1.44%
Kerala 418.6473398 0.9%
Uttarakhand 374.7063559 0.81%
Chhattisgarh 324.5452778 0.7%
JHARKHAND 284.7706012 0.61%
Goa 266.6275854 0.57%
Bihar 84.34716688 0.18%
Puducherry 66.91154219 0.14%
Himachal Pradesh 66.54811583 0.14%
CHANDIGARH 23.2553949 0.05%
Assam 11.18631801 0.02%
TRIPURA 0.89954665 0%
MANIPUR 0.447117976 0%
SIKKIM 0.339378285 0%
ARUNACHAL PRADESH 0.243958608 0%
Meghalaya 0.154116906 0%
LADAKH 0.011519783 0%
LAKSHADWEEP 0.002140265 0%
NAGALAND 0.000847883 0%
MIZORAM 0.00046254 0%
ANDAMAN AND NICOBAR ISLANDS 0 0%
Jammu & Kashmir 0%
Others 0%

Source : DGCI&S

Region wise engineering exports

India’s region-wise engineering exports (DGCIS) rose approximately 5% to US$ 102 bn in Apr–Jan 202526, led by the Western Region at US$ 44.9 bn (+14%, 44% share), which more than offset a contraction in the Southern Region to US$ 31.5 bn (–6%, 30.8% share). The Northern Region inched up marginally by 1% to US$ 16.5 bn (16.1% share), while the Eastern Region posted steady growth of 9% to US$ 9.2 bn (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.

Disclaimer: Please note the following disclaimer given by the DGCI&S whereby it is stated that state-wise export figures are based on state of origin code in shipping bills and may not give the right estaimate. Also the datdata hast been updated since the last two years

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

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

Value in US$ million

Region Apr-Mar 2024-25($Mn) Apr-Mar 2025-26 ($Mn) Growth %
SOUTHERN REGION 12360.39 13684.84 10.72%
EASTERN REGION 3572.11 5334.91 49.35%
WESTERN REGION 15028.79 17878.46 18.96%
NORTHERN REGION 8264.44 9472.47 14.62%
Grand Total 39225.72 46370.68 18.21%

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. Both engineering growth and manufacturing growth moved in the same direction during October to December 2025. 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 month of January 2026 saw acceleration in engineering export growth but moderation in manufacturing output growth while February 2026 witnessed higher growth of both over the month.

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
January 2026 10.35 5.3
February 2026 12.91 6.0
March 2026 1.13 4.3
April 2026 8.78 6.2
May 2026 24.48 5.5
June 2026 20.90 7.8
July 2026 17.71 7.3

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during March 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 March 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.

Indian Rupee dropped to its alarming all-time low below 95 per USD during March 2026 and conceded worst fiscal year drop since fiscal 2011-12: War between Iran and US-Israel and subsequent closure of strait of Hormuz strengthened dollar and rupee weakened towards the end of February 2026 that continued in March 2026 as the uncertainty escalated following the continuation of the war. On a closing basis, INR depreciated by around 4% in March and 10.6% in fiscal 2025-26 as it dropped below 95 and closed the month at 94.65 per USD. RBI intervention in the currency market helped rupee to recover in early-April 2026.

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 2025-26 2026-27
April 85.56 93.55 9.34 Depreciation 0.85 Depreciation
May 85.19 95.60 12.22 Depreciation 2.19 Depreciation
June 85.90 94.97 10.56 Depreciation -0.66 Appreciation
July 86.11 95.82 11.28 Depreciation 0.90 Depreciation
August 87.52 95.47 9.08 Depreciation -0.37 Depreciation
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 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
March 86.64 92.76 7.06 Depreciation 2.19 Depreciation

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
Engineering Export 10.4 12.31 11.48 12.24 12.32
Engineering Import 14.4 14.36 14.19 15.66 15.06
Trade Balance -4.0 -2.05 -2.71 -3.42 -2.74

Source : DGCI&S

TO CONCLUDE...

Indian engineering exports exhibited remarkable resilience as it achieved record value for the second consecutive year – in FY 2025-26, India’s engineering exports reached USD 122.43 billion as against UAS 116.75 billion in the previous fiscal recording a growth of 4.86%. The export growth came at a time when global trade faced unprecendented challenges in the form of geopolitical crisis in Middle East and West Asia which blocked one of the most prominent trading routes in the region making logistics difficult and expensive.

Despite these external pressures, India’s overall engineering exports remained positive in FY 2025-26 in North America, Europe, Latin America, etc. Only exports to WANA region suffered due to the direct consequence of the conflict. This stellar performance is surely a testament to the perseverance and determination of our exporting community.

The export performance in FY 2025–26 is significant in the context of India’s medium?term objective of achieving US$ 250 billion in engineering exports by 2030. Sustaining growth in a year characterised by global uncertainty strengthens the foundation for accelerated expansion in the coming years.

Policy measures announced during the year, including the Resilience & Logistics Intervention for Export Facilitation (RELIEF) Scheme with an outlay of ?497 crore, aimed at addressing war?risk insurance, insurance premium volatility, and elevated logistics costs, contributed to trade continuity during the WANA crisis. In addition, the inclusion of Chapter 72 (Iron and Steel products) under the Interest Subvention Scheme is expected to support the exporting community particularly for cost?sensitive segments of the industry.

Going forward, the combination of sectoral resilience, market diversification, and targeted policy interventions will remain critical for sustaining export momentum and progressing towards long?term export targets.