Engineering exports from India continued to grow for the fifth straight month in fiscal 2026-27 and in August 2026, both monthly export value and year-on-year export growth were highest of this fiscal till date. Engineering exports in August 2026 was recorded at USD 12.32 billion as against USD 9.87 billion in the same month last fiscal, securing a growth of at 24.86 percent. On a cumulative basis, engineering exports during April-August 2026-27 stood at USD 58.70 billion as against USD 49.10 billion in the same period last fiscal, registering a growth of 19.55 percent. As per the Quick Estimates of the Government, share of engineering in India's total merchandise exports was recorded at 28.1 percent during August 2026 while on a cumulative basis, the share was 27.2 percent during April-August 2026-27. This growth in fiscal 2026-27 was driven mainly by growth in shipments of product groups namely Electric machinery and equipment; Iron and steel; Ships, boat and floating structures; Aluminium and its products; and Copper and its products among others. Region wise, North America, EU and WANA continued to remain top exporting destinations for Indian engineering consuming around half of India's global engineering supply.
| Trade Flow | Export figures(in $ billion) | Growth (%) | ||||
|---|---|---|---|---|---|---|
| Aug-2025 | Aug-2026 | Apr-Aug 2025-26 | Apr-Aug 2026-27 | Aug-2026 over Aug-2025 | Apr-Aug 2025-26 over Apr-Aug 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 August 2026 over August 2025 as well as in cumulative terms during April-August 2026-27 vis-à-vis April-August 2025-26. The data clearly shows that top 25 countries contribute more than 75 % of total engineering exports.
(US$ million)
| Countries | Aug-2025 | Aug-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-Aug 2026 as compared to April-Aug 2025
Regional observations:
In August 2026, India’s engineering exports grew in almost all the top 25 destinations barring UAE and Saudi Arabia – the decline can be explained by the renewed logistics disruption created by the West Asia crisis. Infact India’s exports to both these countries have indicated volatility in the last few months. Interstingly exports to Oman which is in the same area showed significant increase. This can be attributed to the recently signed India-Oman FTA and the new immediate tariff advantage that it offered. While India also has a CEPA with UAE, it is a relatively older agreement so August 2026 did not generate a comparable “new FTA” tariff-led demand boost. Also, given the significance of both UAE and Saudi Arabia in the WANA region, India’s exports to the overall region declined by 11.3% in August 2026.
In cumulative terms too, export decline was noted in UAE and Saudi Arabia only while exports to WANA remained positive.
(US$ million)
| Regions | Aug-2025 | Aug-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.
Sectoral Observations
India’s engineering exports grew by about 19.5% in April–August 2026-27 to around US$58.70 billion, with mixed performance across panels:
a) Exports of iron and steel and products rose by 17% during April–August 2026-27, supported by higher shipments of primary steel growing by 36%, while products of iron and steel witnessed a negligible marginal decrease of 0.03% Overall, India’s steel exports rose 15% to US$9.86 billion during April–August 2026-27, supported by strong demand from the USA, UAE, Italy and UK (EU Countries), Nepal, Vietnam, Netherland , Germany and Belgium (EU markets), and Korea Rep.
As per the latest Ministry of Steel estimates, during April to August FY 2026-27, India remained a net importer of finished steel, with imports exceeding exports by approximately 0.50 million tonnes. During April-August 2026, India's finished steel exports amounted to 2.99 million tonnes, while imports stood at 3.49 million tonnes, making the country a net importer of finished steel by around 0.50 million tonnes during the period. In August 2026, finished steel exports were 0.694 million tonnes, whereas imports were 0.721 million tonnes, indicating that imports continued to marginally exceed exports despite robust growth in overseas shipments.
On the raw material front, the price of NMDC Iron Ore Baila Lump (65.5% Fe) declined to ?5,250 per tonne in August 2026 from ?5,450 per tonne in July 2026, reflecting a moderation in domestic iron ore prices. Domestic steel prices, however, showed a mixed trend during the month. Compared with July 2026, the retail price of TMT (10 mm) increased by 2.3% to ?58,002 per tonne, while HR Coil (2 mm) prices rose by 0.9% to ?70,448 per tonne. In contrast, CR Coil (0.63 mm) prices recorded a marginal decline of 0.2% to ?76,462 per tonne in August 2026. Overall, while iron ore prices softened, finished steel prices remained largely stable with slight gains in TMT and HRC segments.
b) Among the other non-ferrous products, in August 2026, both aluminium and copper experienced significant growth due to increased global demand. Increase was also noted in nickel, zinc and tin exports. Only decline was noted in lead exports which can be explained by a combination of global price drop and growing demand in India’s battery sector.
(US$ 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-August 2026 vis-à-vis April-August 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
India’s state-wise engineering exports during April-July 2026-27 reflect robust growth with significant contributions from western and southern states.
Maharashtra remained the largest engineering exporting state, with exports rising to US$ 9.0 billion, accounting for 19% of India’s total engineering exports, although growth was relatively moderate at 7%. Gujarat emerged as one of the strongest growth drivers among the top exporting states, with exports surging 36% to US$ 7.2 billion, capturing a 16% share. Tamil Nadu retained its position as the third-largest exporter, registering 7% growth to US$ 7.18 billion and contributing 15% to the country's engineering exports. Karnataka and Odisha also recorded impressive growth of 32% and 69%, respectively, highlighting the increasing diversification of India’s engineering export base. Haryana maintained its strong position with exports growing by 12% to US$ 3.16 billion, while Delhi recorded a notable 25% increase in exports. Among the emerging contributors, Uttarakhand posted the highest growth rate among major exporting states, with exports more than doubling by 131% during the period.
(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 during April-July 2026 registered a strong growth of 18%, increasing to US$ 46.38 billion from US$ 39.24 billion in the corresponding period of the previous year.
The Western Region continued to dominate India's engineering exports, with shipments rising by 19% to US$ 17.88 billion, accounting for the largest 38.5% share of total exports.
The Southern Region remained the second-largest contributor, recording exports of US$ 13.68 billion, a growth of 11% over April-July 2025, and accounting for 29.5% of total engineering exports.
The Northern Region posted a healthy growth of 15%, with exports increasing to US$ 9.48 billion, contributing 20.4% to the national total.
The Eastern Region emerged as the fastest-growing region, registering an impressive 49% increase in engineering exports to US$ 5.33 billion. Its share in total exports reached 11.5%, reflecting growing export momentum from the region.
Overall, India's engineering export performance during April-July 2026 was driven by broad-based growth across all regions, with the Western Region retaining its leadership position while the Eastern Region demonstrated the strongest pace of expansion.
Key Products driving exports in top states:
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. Latest statewise data is available for the month of July 2026.
Note : DGCI&S state wise data available till Aug-2026
Value in US$ million
| Region | Apr-Aug 2025-26($Mn) | Apr-Aug 2026-27 ($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 and in 2025-26, both engineering export growth and manufacturing growth moved in the same direction in seven out of 12 months.
The first month of fiscal 2026-27 saw manufacturing output growth (new series with base year 2022-23) engineering export growth and moved in the same direction with both securing higher growth over the previous month. May, June 2026, however witnessed both of them moving in the opposite direction. While May 2026 saw higher engineering export growth but moderated manufacturing output growth, June 2026 witnessed just the reverse. July 2026 saw both engineering export growth and manufacturing output growth slowed down.
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 August 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 August 2026, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2025-26 and fiscal 2026-27 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 |
Indian Rupee once again appreciated vis-à-vis the US Dollar on a month-on-month basis in August 2026 by 0.4 percent. On a year-on-year basis however, the depreciation continued and was at 9.08 percent.
(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 2026-27 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
Global merchandise trade experienced a significant acceleration in August 2026 – this is explained by the J.P. Morgan–S&P Global Manufacturing PMI New Export Orders Index which increased from 50 in July 2026 to 51.4 in August 2026. This remains the highest reading since July 2021. As per S&P Global, this growth may indicate an expansion of approximately 8% in global merchandise trade compared to 6% in July 2026. The trend is also consistent with India’s engineering export performance which rcorded highest monthly as well as cumulative growth in August 2026. This performance despite the renewed logistics disruptions from the West Asia crisis may indicate increasing confidence in the global market. Overall, the August 2026 upturn suggests that global demand conditions are becoming more supportive for India’s engineering exporters, reinforcing the need to consolidate market presence, diversify destinations and strengthen supply-chain resilience amid continuing geopolitical and logistics risks.
Monthly Trend
Highlights
Product Panels
Impact of Exchange Rate
Conclude