India’s engineering goods exports surpassed $10 billion in February 2026, demonstrating resilience despite rising geopolitical tensions and higher logistics costs. According to data from EEPC India, outbound shipments grew 12.9 per cent year-on-year to USD 10.36 billion, compared with USD 9.17 billion in February 2025.
Industry leaders described the performance as a positive signal for exporters, especially as global trade continues to face uncertainty. While freight rates and supply chain disruptions remain a concern, the sector’s growth highlights sustained international demand for Indian engineering products.
Demand Remains Strong Across Key Markets
Export growth was supported by robust demand from several global markets. Out of India’s 25 major engineering export destinations, 17 recorded positive growth during the month. However, exports to the United States and the United Arab Emirates, two of India’s largest markets, declined in February. Shipments to the United States fell 4.9 per cent year-on-year to $1.57 billion, down from $1.65 billion in the same period last year. Similarly, exports to the UAE dropped 14 percent to $591.93 million.
In contrast, exports to China more than doubled, reaching $436.18 million, compared with $207.45 million in February 2025. Other markets that recorded healthy growth included Saudi Arabia, the United Kingdom, Singapore, and the Republic of Korea.
Geopolitical Tensions Disrupt Trade Routes
Despite the positive export performance, industry leaders remain cautious about the global trade environment. EEPC India Chairman Pankaj Chadha highlighted that exporters are operating in a challenging environment marked by geopolitical instability and economic slowdown in several regions. According to Chadha, recent conflicts involving Iran have disrupted major sea trade routes, affecting shipping schedules and increasing transportation costs.
“Exporters have been facing escalating financial burdens, including war-risk surcharges, high insurance premiums, and extraordinarily high freight costs,” Chadha said. In addition, rising energy prices and shortages of key raw materials have further pressured exporters’ margins, creating additional operational challenges for the sector.
Government Introduces Support Measures
To help exporters manage these disruptions, the Government of India has launched the Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme. The initiative aims to provide credit insurance cover to exporters affected by supply chain disruptions linked to the West Asia conflict. Industry stakeholders have welcomed the scheme, viewing it as an important step to mitigate financial risks and sustain export momentum during a period of global uncertainty.
North America Remains the Largest Export Market
Regionally, North America continued to be the largest destination for India’s engineering exports, accounting for 20 percent of total shipments. The European Union followed with 18 per cent, while West Asia and North Africa contributed 15 percent and ASEAN accounted for 11 percent.
However, exports to West Asia and North Africa, other European markets, and the CIS region declined during the April–February period, highlighting the uneven impact of geopolitical tensions and economic headwinds across global markets.
As reported by businessworld.in, while global uncertainties persist, India’s engineering export sector continues to demonstrate resilience, supported by diversified markets, strong industrial demand, and government-backed policy support.
