After two successive years of all-time high shipments, Indian engineering exports continued its growth run in the new fiscal 2026-27 also. During the month of April 2026, engineering exports from India was recorded at USD 10,351 million as against USD 9,515.77 million, registering a growth of 8.78 percent year-on-year. A noteworthy beginning in a new fiscal for Indian engineering indeed especially on the back of extreme adversity in production and logistics following geo-political crisis in West Asia and subsequent closure of the Strait of Hormuz that routes a major share of India’s foreign trade. As per the government, the share of engineering in total merchandise exports was recorded at 23.8 percent in April 2026, a bit lower than 24.9 percent in April 2025. The growth in April 2026 was basically attributed to significant growth of Aluminium and its products (38%), Copper and its products (80%), Electric machinery and equipment (9.5%), two and three wheelers (36%), and Auto components/parts (7.2%) among others. Out of 34 products panels, as much as 28 panels achieved year-on-year growth in exports during the month. Among the exporting regions, top destination North America and EU saw growth of 7.1% and 13% respectively in April 2026. Exports to all regions recorded growth but exports to WANA and ASEAN continued to decline. Among the top exporting countries, exports to USA, UK and Germany increased in April 2026 over the years but shipments to UAE, Singapore and Saudi Arabia continued to drop.
| Trade Flow | Export figures(in $ billion) | Growth (%) | ||||
|---|---|---|---|---|---|---|
| Apr-2025 | Apr-2026 | Apr-Apr 2025-26 | Apr-Apr 2026-27 | Apr-2026 over Apr-2025 | Apr-Apr 2025-26 over Apr-Apr 2026-27 | |
| 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.
The monthly engineering export figures for 2026-27 vis-à-vis 2025-26 are shown below as per the latest DGCI&S estimates:
US$ million
| Month | 2025-26 | 2026-27 | 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
We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during April 2026 over April 2025. The data clearly shows that top 25 countries contribute more than 74 % of total engineering exports.
(US$ million)
| Countries | Apr-2025 | Apr-2026 | Growth (%) | April-August 2025-26 | April-August 2026-27 | 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
The following table depicts region wise India’s engineering exports for April 2026 as compared to April 2025
Regional Observations:
While on the first month of the new fiscal, India’s engineering exports remained positive in almost all regions, decline was noted in only two regions: WANA and ASEAN:
WANA: The demand in the WANA region has declined mainly due to decline in exports to UAE and Saudi Arabia. As per latest reports both the countries faced significant challenges due to regional conflicts. As per Deloitte, Saudi Arabia’s Purchansing Manager’s Index contracted for the first time since 2020 in March 2026. UAE has also faced issues as it is a transhioment hub and depends significantly on key shipping routes which have been affected due to the conflicts. UAE’s non-oil PMI has also slowed down to 52.9 in March. Indian exporters are also facing stiff competition from Chinese suppliers and even Russian suppliers at some instance
ASEAN: In case of ASEAN, the decline has been noted in Philippines, Cambodia and Myanmar. The decline has been noted mainly in automobile and auto component exports. Also, decline was noted in Singapore in case of aircraft, spacecraft and parts
(US$ million)
| Regions | Apr-2025 | Apr-2026 | Growth (%) | April-August 2025-26 | April-August 2026-27 | 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.
The following table depicts region wise India’s panel wise engineering exports for April 2026 as compared to April 2025
Sectoral Observations:
India’s engineering exports grew by about 8.8% in April 2026 to around US$ 10.35 billion, with mixed performance across panels:
a) Exports of iron and steel rose by 3% during April 2026, supported by higher shipments of primary steel, while products of iron and steel grew ata ahiger rate of 5% compared to the growth of 1.1% witnessed in exports of iron and steel. Overall, India’s steel exports rose 3% to US$1.67 billion during April26, supported by strong demand from the USA, Nepal, UK, Italy, Belgium, Korea Rep, Netherland, Vietnam and UAE, etc.
As reflected in the Ministry of Steel data, India’s crude steel production increased by 5.8% year-on-year to 14.1 Mt in April 2026, supported by a 3.4% rise in finished steel production (13.05 Mt), while finished steel consumption grew at a much faster pace of 8.1% to 12.99 Mt.
The higher growth in consumption compared to production highlights strong domestic demand conditions, driven by sustained activity across infrastructure, construction, and manufacturing sectors, indicating robust underlying economic momentum and tightening demand–supply dynamics.
b) The non-ferrous metals panel emerged as a major growth driver, with exports rising by 44% to US$1.3 billion during April 2026. Products like Copper, Aluminium and Zinc witnessed high growth in the first month of the current fiscal. Only exports of Lead declined by 2% mainly due to decline in exports to South Korea by 42%. However, overall engineering exports to Korea in April 2026 remained positive at 7%.
c) Exports of industrial machinery increased by 4% to US$1.82 billion during April 2026, driven by strong demand for Pumps and Valves, Machine Tools, Injecting moulding Machinery. However, exports of IC engines and parts grew only moderately.
d) Exports of electrical machinery grew by 10% to US$1.3 billion, supported by demand for power equipment, switchgear, and transmission-related products.
The automobile sector recorded robust growth of 10%, with exports reaching US$2.2 billion, led by South Africa, Mexico, Spain, SriLanka, Colombia, Nigeria,Indonesia witnessing strong growth, reflecting sustained demand for vehicles and components. Therefore, as a whole for auto components and parts, USA, Mexico, South Africa, Germany, Spain, UK, Peru, Indonesia while South Asia countries, witnessed a strong rebound mainly in Sri Lanka and also in Nepal that boosted auto and auto components and parts exports. However, shipments to Saudi Arabia, Japan, Brazil, Bangladesh, Italy and Australia decelerated
Exports of other engineering products decelerated by 1% to US$1.25 billion, witnessing negative growth in Hand tools, Prime Mica and Other engineering items. In contrast, Railway Transport, medical and scientific instruments and Bicycle and parts, ccranes lifts and Winches, office Equipments and Other Construction Machinery witnessed positive growth during April 2026 compared to April 2025.
(US$ million)
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | Growth |
|---|---|---|---|---|---|---|
| Electric Machinery and Equipment | 1151.17 | 1595.2 | 38.57% | 6381.79 | 7992.11 | 25.23% |
Source : DGCI&S
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
US$ Million
| Product panels | August-2025 | August-2026 | Growth | April-August 2025-26 | April-August 2026-27 | 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
We now analyze the performance of some of the important products for the fiscal April 2026 vis-à-vis April 2025. We have taken the major panels and computed the top importers to get an idea of the current trade pattern.
(US$ million)
| Product panels | Top 5 nations | April-August 2025-26 | April-August 2026-27 | 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
State wise engineering export performance
Overveiw of FY 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
India’s region-wise engineering exports (DGCIS) grew by 5% to US$ 122.4 billion in April–March 2025–26, led by the Western Region at US$ 47.5 billion (+11%, 38.8% share). The Southern Region remained largely flat at US$ 38.1 billion (–1%, 31.1% share), while the Northern Region rose marginally by 2% to US$ 25.0 billion (20.4% share) and the Eastern Region grew by 7% to US$ 11.9 billion (9.7% share). Overall, exports remain concentrated in the Western and Southern regions (about 70%), with the West driving overall growth.
India’s state-wise engineering exports in April 2026 show moderate growth, led by Tamil Nadu and Gujarat (15–25% growth, ~16% share each), while Karnataka grew 30% (8% share) and Odisha surged 45% (6% share). Maharashtra remained the largest exporter at USD 2.1 billion (20% share) with flat growth, whereas Punjab and a few northern states saw declines. Overall, growth is driven by western and southern states.
India’s region-wise engineering exports in April 2026 grew by 9% to US$ 10.35 billion, driven largely by the Western Region at US$ 4.09 billion (+9%, 39.5% share). The Southern and Northern regions recorded moderate growth of about 5% each, reaching US$ 2.99 billion (28.9%) and US$ 2.16 billion (20.8%) respectively, while the Eastern Region showed the highest growth at 28% to US$ 1.12 billion (10.8%). Overall, exports continue to be led by the Western Region, with balanced contributions from other regions.
Key Products driving exports in top states:
Note : DGCI&S state wise data available till Apr-2026
Value in US$ million
| Region | Apr-Apr 2025-26($Mn) | Apr-Apr 2026-27 ($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% |
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 months while 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 November 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 last month of fiscal 2025-26 saw a slowdown in both engineering export and manufacturing growth. During 2025-26, both engineering export growth and manufacturing growth moved in the same direction in seven out of 12 months.
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.
| 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
How did the exchange rate fare during April 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 April 2026, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 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.
(Monthly Average Rate of FBIL has been considered)
Source : FBIL
(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 |
Rupee depreciation vis-à-vis the US dollar continued on the back of high crude prices following the geo-political crisis in West Asian region. Flight of foreign capital from Indian market especially by FPIs also accelerated rupee’s fall. Rupee weakened by around 0.9% month-on-month in April 2026 while the depreciation was10.6% in fiscal 2025-26.
(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
We now present the trend in two-way yearly trade for the engineering sector for the Apr 2026 depicted in the table below:
(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
The Indian engineering performance containued its growth run in the first month of FY 2026-27, recording a significant growth of 8.78% over the same period last year. The growth was noticed in almost all sectors and all regions. Decline was majorly noted in WANA where the region has been significantly impacted by the regional conflicts. However, within the region, exports to Oman increased which is a positive indicator especially due to the recently signed India-Oman CEPA. In this context, it is also important to mention that the Government of India has signed a slew of FTAs with some of our major partners, however to make the FTAs really successful, we need to understand all market access challenges faced by Indian exporters in the FTA partner countries. UNCTAD’s Global Trade Update in its May issue, mentioned that trade policies are becoming interventioninst and while tariffs are raising, it is the non-tariff measures (NTMs) that are creating the major obstacles and raising the trade cost- As per UNCTAD, while tariffs increased around 10 to 18%, NTMs impose higher export costs than tariffs for 88% of countries. Therefore while bilateral trade agreements are essential in the growing protectionism, it is essential that the government and industry along with the Indian Missions abroad collaborate to identify and address the NTMs that create market access challenges.
Monthly Trend
Highlights
Product Panels
Impact of Exchange Rate
Conclude