India’s engineering exports crossed the $10 billion mark in February 2026, demonstrating resilience amid ongoing global economic uncertainties and trade disruptions. The strong performance was driven by robust demand across key markets, with shipments to China witnessing a sharp surge.
According to provisional trade data, exports of engineering goods maintained their upward momentum despite headwinds such as slowing global growth, geopolitical tensions, and supply chain constraints. The sector, which accounts for a significant share of India’s total merchandise exports, continued to benefit from diversified product demand and competitive pricing.
A standout feature of February’s export performance was the significant increase in shipments to China, which reportedly doubled compared to the same period last year. This surge reflects improved market access and rising Chinese demand for select engineering products, including industrial machinery, iron and steel items, and components.
Exporters also reported steady demand from regions such as North America, Europe, and the Middle East, although growth in some of these markets remained moderate due to economic pressures and inventory corrections.
Industry experts noted that India’s engineering sector has been able to navigate global challenges through market diversification, improved product quality, and supportive government policies, including export promotion schemes and trade facilitation measures.
Looking ahead, exporters remain cautiously optimistic. While demand from China is expected to provide near-term support, uncertainties in global trade conditions and currency fluctuations could pose risks in the coming months.
The continued focus on expanding into new markets, along with strengthening existing trade partnerships, is expected to play a crucial role in sustaining export growth for the engineering sector.
