India’s engineering goods sector has continued to post strong export growth in the new fiscal year, reflecting resilient overseas demand and improving order flows across key global markets, according to the Engineering Export Promotion Council (EEPC).
The council said engineering exports maintained positive momentum during the opening months of FY27, supported by higher shipments of industrial machinery, electrical equipment, auto components, iron and steel products, and transport equipment. Demand from markets in the United States, European Union, the Middle East, and parts of Africa contributed to the sector’s growth trajectory.
Industry representatives noted that India’s engineering exporters have benefited from supply chain diversification trends, competitive manufacturing costs, and steady investments in production capabilities. Exporters are also seeing increased inquiries from overseas buyers seeking alternatives to traditional sourcing destinations.
The engineering sector remains one of India’s largest foreign exchange earners and accounts for a substantial share of the country’s total merchandise exports. EEPC said product segments such as construction machinery, industrial valves, electrical machinery, and fabricated metal products have recorded healthy growth despite continuing global economic uncertainties.
Exporters, however, cautioned that rising freight costs, geopolitical tensions, and fluctuating raw material prices continue to pose challenges for the industry. Ongoing disruptions linked to the West Asia crisis and volatility in shipping markets have also increased logistics costs for several exporters.
The industry body urged continued policy support to improve export competitiveness, including easier access to export credit, infrastructure upgrades, and faster trade facilitation measures. Exporters also highlighted the importance of expanding market access through trade agreements and strengthening India’s position in global manufacturing supply chains.
Industry stakeholders remain optimistic that engineering exports will sustain growth during the fiscal year, aided by diversified demand, government support for manufacturing, and increasing global recognition of Indian engineering products.
