Bharat Petroleum Corporation Limited (BPCL) plans to increase the refining capacity of its Kochi Refinery in Kerala from 15.5 million metric tons per annum (MTPA) to 17 MTPA. The proposed expansion will enhance operational flexibility and help BPCL respond more effectively to rising energy demand. At the same time, the company aims to strengthen integration between its refining and petrochemical operations.

Kochi Refinery to Increase Processing Capacity

According to BPCL Chairman and Managing Director Sanjay Khanna, the planned capacity increase, together with the ongoing polypropylene project at Kochi, will enable the company to expand its portfolio of higher-value products. The capacity expansion comes as BPCL continues to record strong refinery throughput. During FY2025-26, the company’s refineries processed a record 41.2 million tonnes of crude, highlighting sustained demand for refining capacity. The Kochi expansion is expected to provide BPCL with additional processing capability while supporting its strategy to capture greater value from downstream products.

BPCL Strengthens Refining-Petrochemical Integration

Alongside the Kochi expansion, BPCL is advancing an integrated refinery expansion and petrochemical project at its Bina Refinery in Madhya Pradesh. The Bina development includes planned downstream petrochemical facilities designed to create an integrated energy and petrochemical complex in Central India. The project forms part of BPCL’s broader strategy to deepen petrochemical integration across its refining network. Similarly, at Kochi, the proposed capacity increase and polypropylene project are expected to strengthen the refinery’s ability to support downstream manufacturing. Greater integration between refining and petrochemicals can help BPCL shift towards higher-value products and improve value addition.

BPCL Expands Refining and Petrochemical Portfolio

The Kochi capacity expansion and Bina development represent key components of BPCL’s strategy to strengthen its refining network and petrochemical footprint. Increasing Kochi Refinery’s capacity to 17 MTPA will add further processing capability to BPCL’s existing refining portfolio. Moreover, investments in petrochemical facilities will support a more integrated model connecting crude processing with downstream product manufacturing. As India’s energy demand continues to rise, BPCL is focusing on both refining capacity expansion and petrochemical integration. As reported by manufacturingtodayindia.com, these initiatives can help the company meet growing domestic demand while increasing the contribution of higher-value products to its overall portfolio.

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilizers, hosted the inaugural edition of CHEMCONNECT 2026 at the Indian Institute of Technology (IIT) Madras. The event brought together policymakers, industry leaders, researchers and entrepreneurs to strengthen collaboration and accelerate innovation across India’s chemicals and petrochemicals sector.

BioPack Centre of Excellence Inaugurated at IIT Madras

Shri Tejveer Singh, Secretary, DCPC, inaugurated CHEMCONNECT 2026 and launched the Centre of Excellence on Biodegradable Packaging Materials (BioPack) at IIT Madras. The new BioPack facility aims to accelerate the development and adoption of sustainable packaging materials. In addition, it will serve as a platform for advanced research, innovation and capacity building in biodegradable and eco-friendly packaging technologies.

CHEMCONNECT to Become an Annual Industry-Academia Platform

The Department announced that CHEMCONNECT will become an annual event, taking place every July–August. The initiative will provide a regular platform to review and benchmark progress across the Centres of Excellence established by the Department of Chemicals and Petrochemicals. Furthermore, the annual event will help stakeholders share research outcomes, identify emerging opportunities and strengthen cooperation between academia, industry and government.

Connecting Research with Commercial Opportunities

More than 200 industry leaders, researchers and entrepreneurs participated in the inaugural edition. The discussions focused on strengthening industry-academia collaboration and converting promising laboratory research into commercially viable products and technologies. By bringing researchers and businesses together, CHEMCONNECT aims to shorten the journey from laboratory innovation to market adoption. Consequently, the platform can help Indian companies develop domestic technologies, reduce dependence on imports and strengthen the country’s manufacturing capabilities.

Supporting the Vision of Viksit Bharat 2047

CHEMCONNECT 2026 also supports the broader vision of Viksit Bharat 2047 by encouraging indigenous innovation and promoting technology-led growth in the chemicals and petrochemicals sector. Through stronger industry-academia partnerships, the initiative seeks to accelerate domestic product development, import substitution and sustainable technological innovation. As reported by exampurstore.com, the inaugural CHEMCONNECT therefore marks an important step towards creating a more connected innovation ecosystem, where research institutions, industry and policymakers can work together to develop commercially relevant technologies for India’s future.

Tata Chemicals Limited (TCL) announced that its wholly owned subsidiary, Tata Chemicals North America Inc. (TCNA), has emerged as the successful bidder in the Chapter 11 bankruptcy proceedings of Searles Valley Minerals Inc. (SVM), USA. As part of the transaction, TCNA will acquire North American soda ash customer contracts representing more than 500,000 metric tonnes. The contracts will be serviced from September 2026 through December 2028 and are expected to generate more than USD 110 million in revenue during the contract period.

Acquisition Strengthens North American Soda Ash Presence

The acquisition will strengthen TCNA’s position in the North American soda ash market. In addition, it will expand the company’s domestic customer base and deepen its long-term customer relationships. The newly acquired contracts will also provide greater demand visibility and customer retention, while supporting TCNA’s efforts to create sustainable value. Furthermore, the additional contracted volumes will enable the company to strengthen its market position and build a more resilient customer portfolio.

Transaction Approved by US Bankruptcy Court

TCNA has entered into an Assignment and Assumption Agreement (ASA) with Searles Valley Minerals Inc. to acquire certain soda ash customer contracts and related commercial rights. The United States Bankruptcy Court for the District of Delaware has approved the transaction. TCNA will pay USD 21.16 million in cash consideration for the acquisition. However, the transaction remains subject to customary closing conditions specified under the ASA.

Tata Chemicals Eyes Long-Term Customer Growt

R Mukundan, CEO & Managing Director, Tata Chemicals Limited, said the transaction presents a strategic opportunity to strengthen the company’s presence in the North American soda ash market. He noted that the acquired contracts secure demand for more than 500,000 metric tons and are expected to generate revenues exceeding USD 110 million through December 2028. According to Mukundan, the acquisition will expand Tata Chemicals’ portfolio of long-term customer relationships while improving demand visibility. It will also reinforce the company’s commitment to reliable supply and superior customer service. The transaction is aligned with Tata Chemicals’ broader strategy of pursuing profitable growth, strengthening customer relationships and creating sustainable value for stakeholders. As per the press release, the acquisition gives Tata Chemicals North America a stronger foothold in the North American soda ash market while securing significant contracted demand and strengthening its long-term customer portfolio.

Germany’s chemical industry recorded a sharp improvement in business sentiment in August, with companies turning positive on current business conditions for the first time in four years. However, the recovery remains fragile, as stronger exports are largely benefiting from supply disruptions affecting chemical producers in Asia and the Middle East. The Ifo Institute reported that the chemical sector’s business climate index rose to -2.4 points in August, compared with -26.3 points in July. Meanwhile, the current conditions index improved to 11.6 points from -14.6 points, marking its first positive reading since July 2022. Despite the improved sentiment, Germany’s chemical industry continues to face significant structural challenges.

Chemical Production Remains Below Pre-Crisis Levels

The improvement in sentiment does not yet indicate a broad-based recovery in German chemical manufacturing. According to Ifo industry expert Anna Wolf, German chemical production remains approximately 20% below 2021 levels. Although companies are experiencing stronger demand in some export markets, production capacity remains underutilised. Therefore, the latest improvement in business sentiment should be viewed as an early positive signal rather than evidence of a sustained industrial recovery.

Supply Disruptions Boost German Chemical Exports

One of the key factors supporting Germany’s chemical industry is the disruption affecting Asian and Middle Eastern suppliers. These disruptions have created opportunities for German producers to supply markets that would otherwise rely on manufacturers in those regions. As a result, exports have strengthened, while some companies have benefited from improved pricing and demand. However, this advantage could prove temporary. Wolf cautioned that once Asian supply chains return to normal, the substitution effect could fade. Recent corporate developments also reflect the improved market environment. BASF, Evonik and Brenntag have raised their full-year profit forecasts, partly benefiting from supply disruptions outside Europe.

Capacity Utilisation Remains a Major Concern

Despite stronger orders and improved sentiment, capacity utilisation continues to pose a challenge for Germany’s chemical manufacturers. Capacity utilisation stood at approximately 73.2% in the third quarter, significantly below the long-term average of around 80.4%. It also remains below the level generally required for chemical plants to operate economically. Consequently, the increase in demand has not yet translated into a corresponding increase in production. Instead, companies appear to be meeting stronger orders partly by drawing down existing inventories.

High Energy and Carbon Costs Remain Challenges

Germany’s chemical industry continues to face several structural competitiveness challenges. These include high natural gas prices, concerns over energy supply security and rising CO₂ costs. These factors continue to put pressure on production economics, particularly for energy-intensive chemical manufacturers. Moreover, companies remain concerned that current policy measures may not deliver a significant improvement in international competitiveness during the present business cycle.

Recovery Outlook Remains Uncertain

Germany’s chemical sector has therefore entered August with a more positive outlook, but significant challenges remain. Improving orders, stronger exports and better business sentiment offer encouraging signals. Nevertheless, low capacity utilisation, planned job cuts, high energy costs and unresolved structural issues continue to weigh on the industry. As reported by reuters.com, the sector’s recovery will depend on whether stronger demand translates into higher production and capacity utilisation, rather than simply reflecting temporary supply disruptions and inventory adjustments.

India’s Suzlon Group has launched its 5 MW and 6.3 MW wind turbine models in Europe, strengthening its presence in the continent’s growing wind energy market. The company is targeting both wind farm repowering projects and new-build developments. The move comes as Europe enters a crucial phase of wind turbine replacement and capacity expansion, creating increasing demand for larger, higher-capacity and site-specific turbines.

Suzlon Targets Europe’s Repowering Market

Suzlon expects Europe’s wind energy sector to enter a major repowering cycle as ageing wind turbines reach the end of their operating lives. As a result, wind farm operators are increasingly looking to replace older turbines with more powerful and efficient models. Suzlon believes its new 5 MW and 6.3 MW turbines can address this demand while also supporting new wind projects across the region.

Suzlon Expands Global Wind Energy Footprint

Suzlon has installed approximately 21.5 GW of wind power capacity across 17 countries. Of this total, around 15.5 GW is installed in India, while nearly 6 GW has been deployed across international markets. The company currently has approximately 660 MW of installed wind capacity in Europe, providing an established base for its latest expansion. By introducing higher-capacity turbine models, Suzlon aims to further strengthen its position in the European wind energy market.

Europe Offers Significant Wind Power Potential

Europe presents substantial opportunities for both new wind projects and repowering existing installations. According to Suzlon Executive Vice Chairman Girish Tanti, the region has nearly 100 GW of potential for new wind projects, along with approximately 17 GW of repowering opportunities. Therefore, the combination of new project development and replacement of ageing turbines could create sustained demand for advanced wind turbine technology.

Global Wind Industry Sets New Installation Record

The global wind energy industry continues to expand rapidly. The industry installed a record 165 GW of new wind power capacity last year, marking a 40% increase from 2024. China accounted for much of this growth, highlighting the country’s continued dominance in global wind energy deployment. Against this backdrop, Suzlon’s expansion into Europe’s high-capacity turbine market could help the company capture a larger share of the global transition towards renewable energy.

Suzlon Strengthens Its European Wind Energy Strategy

With Europe accelerating both wind farm repowering and new project development, Suzlon is positioning its latest high-capacity turbines to meet changing market requirements. As reported by thehindubusinessline.com, the launch of the 5 MW and 6.3 MW models could consequently strengthen Suzlon’s European presence while supporting the region’s efforts to expand renewable power generation and improve wind energy efficiency.

The Department of Atomic Energy (DAE) prepared a Cabinet note proposing a new consulting subsidiary of state-owned Nuclear Power Corporation of India Ltd. (NPCIL). The proposed unit would support companies seeking to enter India’s newly opened nuclear power sector, according to officials familiar with the development. The subsidiary, which would be fully owned by NPCIL, is expected to provide design and engineering services, operations and management support, and regulatory assistance to private companies planning to build pressurised heavy water reactor (PHWR) units.

NPCIL to Support New Nuclear Power Entrants

NPCIL currently operates India’s PHWR-based nuclear power fleet and has extensive expertise in nuclear power generation. Consequently, private companies looking to develop PHWR projects have approached the state-run company for technical guidance. The proposed consulting subsidiary would formalise this support and provide private-sector entrants with access to specialised technical expertise. Companies are showing growing interest in India’s indigenous PHWR technology because of its established operating experience, safety record and potential cost advantages. Moreover, some companies exploring light water reactors based on overseas technologies have also sought technical advice from NPCIL.

India Targets 100 GW of Nuclear Capacity by 2047

India aims to significantly expand its nuclear power capacity to meet rising electricity demand while supporting its clean-energy and climate objectives. The country has set a target of 100 GW of nuclear power capacity by 2047. NPCIL itself plans to contribute around 54 GW to this target while also supporting other entities that seek to participate in nuclear power generation. Therefore, greater private-sector participation could accelerate the development of new nuclear projects across the country.

SHANTI Act Opens Nuclear Sector to Private Companies

The proposed NPCIL consulting unit follows a major policy change in India’s nuclear energy sector. In December 2025, the government introduced the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, opening nuclear power generation to private-sector participation. Previously, nuclear power generation remained largely under government control, with NPCIL operating the country’s existing nuclear power plants. The DAE has issued draft rules and regulations to support implementation of the SHANTI Act. These provisions would allow eligible private companies to apply for licences to build, own, operate and decommission nuclear power plants.

Proposed Consulting Subsidiary to Provide Technical Support

According to the proposed framework, the new consulting subsidiary would initially have three NPCIL-nominated directors, including a chief executive officer and chief financial officer, to oversee its operations. NPCIL could provide the subsidiary with initial equity funding as required. The capital could support infrastructure and other assets, with additional funding potentially provided as the unit expands. The structure would allow NPCIL to leverage its technical capabilities while creating a dedicated platform to assist new participants in the nuclear industry.

Demand Grows for Independent Nuclear Expertise

Private-sector companies have previously called for an independent body to provide techno-commercial support as they navigate India’s highly regulated nuclear industry. Such support could cover areas including reactor design and engineering, reactor technology selection, site selection, operations and maintenance strategies, regulatory requirements and policy and project-related guidance. A joint report prepared by the DAE and the Ministry of Power last year also recommended creating a dedicated entity to provide technical assistance to companies interested in PHWR technology and other indigenous nuclear technologies.

Supporting India’s Nuclear Energy Expansion

The proposed NPCIL consulting subsidiary could play an important role as India expands private participation in nuclear power. By providing specialised engineering, operational and regulatory expertise, the unit could help new entrants navigate the technical and regulatory complexities of nuclear projects. As reported by economictimes.indiatimes.com, the initiative could strengthen India’s domestic nuclear technology ecosystem and support the country’s long-term ambition of achieving 100 GW of nuclear power capacity by 2047.

India could see commercial-scale deployment of sodium-ion batteries within the next two to three years, as researchers have advanced the technology to Technology Readiness Level (TRL) 7 and above, Renewable Energy Secretary Santosh Kumar Sarangi said. Sarangi explained that technologies reaching TRL 7—where a system prototype has been demonstrated in an operational environment—can typically progress from pilot projects to commercial production within two to three years. As India rapidly expands renewable energy capacity, the government expects alternative battery technologies to play a growing role in meeting the country’s energy storage requirements, according to ANI.

Sodium-Ion Batteries Move Closer to Commercialisation

The advancement of sodium-ion battery technology to TRL 7 and above indicates that the technology could soon move towards commercial-scale deployment in India. Sodium-ion batteries could also help diversify India’s energy storage technology portfolio. Moreover, as renewable energy generation increases, the country needs reliable and cost-effective storage solutions to manage intermittent power generation. Consequently, commercialising sodium-ion technology could provide India with another option alongside established lithium-ion battery systems.

Vanadium Flow Batteries Gain Momentum

Meanwhile, vanadium flow batteries are also gaining traction in India’s energy storage market. Sarangi said domestic manufacturers are developing supply capabilities, while increasing demand could help bring down production costs. In addition, NTPC Green Energy has placed an order for 100 MW of vanadium flow battery capacity, creating further opportunities for domestic manufacturers. As production volumes increase, economies of scale could lower battery costs and improve the commercial viability of vanadium flow battery technology.

India Targets 411 GWh of Energy Storage

India is also rapidly expanding its energy storage infrastructure. According to estimates from the Central Electricity Authority (CEA), the country’s energy storage requirement could reach around 411 GWh by 2031–32. Sarangi said India is on track to meet this requirement ahead of schedule. Although installed storage capacity remains relatively low, around 156 GWh of battery energy storage projects are currently under tendering, processing or implementation. Therefore, continued investment in battery storage technologies will be essential to support India’s growing renewable energy capacity.

Battery Recycling Remains a Government Priority

Alongside battery manufacturing and deployment, the government is also addressing battery recycling. Sarangi said battery recycling is currently covered under existing e-waste regulations. However, the government could introduce additional provisions if future requirements make them necessary. A stronger recycling ecosystem could subsequently help India recover valuable materials, reduce waste and improve the long-term sustainability of its battery industry.

India Considers New Polysilicon Manufacturing Scheme

The government is also working on a new scheme to encourage domestic polysilicon manufacturing. Sarangi said the capacity expected under the earlier Production Linked Incentive (PLI) scheme may not be sufficient to meet India’s future requirements. The earlier framework covered polysilicon, wafers, solar cells and modules but is expected to create only limited polysilicon production capacity. To strengthen domestic manufacturing and energy security, India is considering adding at least 30 GW of polysilicon manufacturing capacity by 2030.

Building a Stronger Clean Energy Supply Chain

The push for sodium-ion batteries, vanadium flow batteries, battery recycling and domestic polysilicon production reflects India’s broader strategy to strengthen its clean energy manufacturing ecosystem. As reported by knnindia.co.in, by developing multiple energy storage technologies and increasing domestic manufacturing capacity, India can reduce supply-chain vulnerabilities while supporting the rapid expansion of renewable energy, electric mobility and energy storage.

India is reportedly preparing to launch a new incentive scheme worth up to ₹13,000 crore to boost domestic manufacturing of advanced battery cell components. The Central government, led by Prime Minister Narendra Modi, aims to strengthen India’s battery supply chain and reduce the cost gap with Chinese manufacturers. The proposed scheme could significantly expand India’s efforts to build a competitive and self-reliant battery manufacturing ecosystem.

Government Moves to Strengthen Battery Manufacturing

The proposal is expected to move to the Expenditure Finance Committee (EFC) under the Finance Ministry following inter-ministerial consultations. If approved, the scheme could encourage manufacturers to establish large-scale production facilities in India. Consequently, it would help strengthen the domestic supply chain for advanced batteries and support the country’s growing electric vehicle and energy storage sectors.

Five Key Battery Components to Receive Incentives

The proposed incentives will focus on five critical battery components anode active materials, cathode active materials, electrolytes, separator films, and copper foils. These components play a crucial role in the performance, efficiency, safety and cost of advanced battery cells.

India Seeks to Reduce Dependence on China

At present, many battery manufacturers in India rely heavily on Chinese suppliers for key battery components. This dependence has raised concerns over supply-chain resilience as well as economic and geopolitical risks. Therefore, the proposed incentive programme aims to encourage Indian companies to develop domestic manufacturing capabilities. By producing critical components locally, India could reduce import dependence while creating a more resilient battery supply chain.

Incentives Linked to Domestic Manufacturing

Importantly, the government plans to attach conditions to the financial incentives. Companies will need to establish genuine manufacturing capacity in India to qualify for the benefits. The conditions are intended to prevent companies from simply importing finished components, carrying out limited processing in India and claiming incentives. Instead, the scheme will encourage investments in technology, production facilities and domestic value addition.

A Step Towards a Self-Reliant Battery Ecosystem

The proposed ₹13,000-crore battery component incentive scheme could become an important step in India’s efforts to build a competitive domestic battery industry. As reported by swarajyamag.com, increasing local production of anode and cathode materials, electrolytes, separator films and copper foils could strengthen the country’s position in the global battery supply chain. It could also support the expansion of electric mobility, renewable energy storage and advanced energy technologies in India.

Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, commissioned India’s first greenfield Superfine PPT ATH (Precipitated Aluminium Trihydrate) manufacturing plant in Belagavi, Karnataka. With this development, Hindalco brings domestic production of this high-value specialty alumina product to India for the first time. The facility has an annual production capacity of 30,000 tonnes and further strengthens Hindalco’s Specialty Alumina portfolio. More importantly, it supports India’s Atmanirbhar Bharat vision by reducing dependence on imported flame-retardant materials used in critical fire-safety applications. In another significant milestone, the facility is the world’s only specialty alumina plant to operate entirely on renewable energy, establishing a new benchmark for sustainable manufacturing.

Supporting Safer and More Sustainable Cable Systems

Superfine PPT ATH is a high-value, halogen-free flame-retardant material used in Halogen-Free Flame Retardant (HFFR) cables, polymer insulators, thermal insulation, composites and paints. In cable applications, PPT ATH helps retard flame propagation and suppress smoke generation without releasing halogen acid gases. As a result, it supports the development of safer electrical systems and infrastructure. Demand for halogen-free flame-retardant materials is also increasing rapidly. Stricter fire-safety regulations, growing infrastructure investments, rising electric vehicle adoption and the industry’s transition towards sustainable, high-performance materials are driving this growth.

30,000 TPA Capacity to Reduce Import Dependence

Hindalco’s Phase 1 facility has an annual production capacity of 30,000 tons. The company has designed the plant to meet almost the entire current domestic demand from India’s wire and cable industry for this critical flame-retardant material. The facility also provides a clear pathway for future growth. Hindalco has designed the plant for phased expansion, with the capacity expected to increase to 60,000 tons in line with the growth of the domestic market. Therefore, the project represents an important step towards strengthening India’s self-reliance in advanced specialty materials and reducing dependence on imports.

Focus on High-Value Specialty Alumina

Satish Pai, Managing Director, Hindalco Industries, said, “The commissioning of our Superfine precipitated hydrate plant in Belagavi will further strengthen our leadership position and enhance our high-value specialty alumina portfolio in India. This investment reflects Hindalco’s focus on creating value, moving up the value chain and delivering advanced solutions that meet the emerging needs of customers in India and global markets.” The investment highlights Hindalco’s strategy of expanding beyond conventional aluminium products and developing high-value, technology-driven specialty materials for growing domestic and international markets.

InnoSafe Solution Enhances Fire Safety

Saurabh Khedekar, CEO, Alumina Business, Hindalco Industries, said, “The addition of Superfine PPT ATH strengthens our Specialty Alumina portfolio and reinforces our focus on innovation-led growth. Our InnoSafe solution enhances fire safety by retarding flame spread and suppressing smoke, enabling safer and more sustainable infrastructure. As India’s first manufacturer of Superfine Precipitated Hydrate, we are proud to offer an indigenous, world-class solution that strengthens self-reliance, reduces import dependence and supports the evolving needs of the wire and cable industry.” Through its InnoSafe solution, Hindalco aims to address the growing requirement for advanced flame-retardant materials that improve fire safety while supporting sustainability goals.

From In-House R&D to Commercial Production

Hindalco developed the facility through its “flask-to-factory” innovation journey, taking the technology from in-house research and development to large-scale commercial production. The plant incorporates automated controls for critical manufacturing processes and operates through a fully integrated production ecosystem. This approach enables the company to maintain stringent control over feedstock quality, manufacturing processes and product consistency. As a result, Hindalco can offer high-performance specialty alumina products designed to meet demanding industrial applications.

A Global Benchmark in Renewable Energy-Powered Manufacturing

Sustainability represents another major differentiator for the new facility. Hindalco produces PPT ATH at its Belagavi refinery, which achieved a GHG intensity of 0.44 tCO2e per tonne of alumina during YTD FY26. Moreover, the facility operates entirely on renewable energy sourced from biomass, solar and wind. This enables Hindalco to manufacture high-performance specialty materials with a lower environmental footprint. By combining renewable energy with advanced manufacturing technology, the company is demonstrating how specialty materials production can support both industrial growth and sustainability objectives.

Advancing India’s Specialty Materials Ecosystem

The commissioning of India’s first Superfine PPT ATH manufacturing plant marks an important milestone for Hindalco and the country’s specialty materials industry. By combining domestic manufacturing, in-house innovation, stringent quality control and renewable energy-powered production, Hindalco is strengthening India’s capability to develop advanced materials for
next-generation fire-safe electrical, infrastructure and mobility applications. Ad per the press release, the facility is also expected to reduce import dependence, support the growing wire and cable industry and contribute to India’s long-term goal of building a more self-reliant and sustainable advanced materials ecosystem.

India’s engineering goods exports increased 18% year-on-year to $12.24 billion in July 2026, extending the sector’s strong performance during the first four months of FY27. Engineering exports remained resilient despite geopolitical tensions and disruptions along major trade routes in West Asia. According to data compiled by the Engineering Export Promotion Council (EEPC) India, exports to key markets such as the US and China recorded strong growth. However, shipments to the UAE and Saudi Arabia declined amid continuing regional uncertainty.

US Remains India’s Largest Engineering Export Market

The US continued to be the largest destination for Indian engineering goods in July. Exports to the US grew 20% year-on-year to $2.18 billion. Meanwhile, exports to China increased sharply by 32% to $349 million, highlighting stronger demand from another major market. During April-July 2026, engineering exports to the US reached $7.78 billion, representing an 11.8% increase compared with the same period last year. Germany, the UK and Singapore also recorded growth during the period. In contrast, engineering shipments to Saudi Arabia declined.

West Asia Disruptions Affect Regional Exports

While India’s overall engineering exports remained strong, geopolitical developments continued to affect shipments to parts of West Asia. The EEPC said the logistics crisis in and around the Strait of Hormuz significantly affected shipments to Saudi Arabia. Since engineering imports in the country are closely linked to project activity, ongoing regional conflicts have affected some projects and weakened purchasing activity. Consequently, exporters could face continued uncertainty in the region if logistics disruptions and geopolitical tensions persist.

27 Engineering Export Segments Record Growth

The sector recorded broad-based growth in July, with 27 of 34 engineering export panels reporting year-on-year increases. However, seven panels registered declines. These included iron and steel products, lead and lead products, machine tools, aircraft, spacecraft and parts, cranes, lifts and winches, office equipment and other engineering product segments. The broad-based performance nevertheless indicates that most engineering product categories continued to support overall export growth.

External Risks Could Challenge Export Momentum

Despite the strong performance, EEPC India has warned that several external factors could put pressure on engineering exports in the coming months. These include higher energy and shipping costs, geopolitical tensions, protectionist measures and stricter technical and regulatory requirements. Together, these factors could increase the cost of accessing overseas markets for Indian exporters. EEPC India Chairman Pankaj Chadha said engineering exports have remained above $10 billion during each of the first four months of FY27, although challenges remain ahead.

Engineering Exports Show Resilience Amid Global Uncertainty

India’s engineering exports have maintained strong momentum despite geopolitical disruptions and rising trade-related challenges. The continued growth in shipments to the US, China and several European markets provides positive support for the sector. As reported by thehindubusinessline.com, exporters will need to navigate rising logistics costs, geopolitical risks, changing regulations and increasing international competition to sustain this growth in the months ahead.