North America and the European Union propelled the growth engines of India’s engineering goods exports in April even as shipments to the Association of Southeast Asian Nations (Asean) and the West Asia and North Africa (WANA) regions fell, according to the Engineering Exports Promotion Council (EEPC).
The engineering goods sector remained the top performer with $10.35 billion exports in April 2026 as compared to $9.52 billion in April 2025, an about 8.8% jump. It contributed 23.8% of India’s total merchandise exports of $43.56 billion in the first month of 2026-27. The share of the sector has, however, declined a bit as compared to 24.9 % in April 2025.
“India’s engineering goods exports continued their growth run in the new fiscal 2026-27 despite logistical and production disruptions caused by the West Asia conflict,” EEPC said in a reference to the ongoing conflict that impacted exports to the WANA region.
The country’s engineering exports to most of the key destinations, including the US, the UK, and Germany, stayed positive in April 2026, it said. “Shipments to the UAE [United Arab Emirates], Singapore, and Saudi Arabia, however, declined during this period.
Among the exporting regions, the top destinations, North America and the EU, saw year-on-year growth of 7.1% and 13% respectively in April 2026, it said. “Exports to all regions recorded growth, but exports to WANA and ASEAN continued to decline,” it added.
“The demand in the WANA region has declined mainly due to a decline in exports to the UAE and Saudi Arabia. As per the latest reports, both countries faced significant challenges due to regional conflicts,” it said.
In the case of Asean, the decline has been noted in the Philippines, Cambodia and Myanmar, it said. “The decline has been noted mainly in automobile and auto component exports. Also, a decline was noted in Singapore in the case of aircraft, spacecraft, and parts,” it added.
The sector, however, saw about 82% annualised growth in exports to China at $301.08 million in April this year, it said.
According to the EEPC, the growth in April was driven primarily by product panels such as aluminium and its products (38%), copper and its products (80%), electric machinery and equipment (9.5%), two- and three-wheelers (36%), and auto components/parts (7.2%).
Of the 34 engineering product panels, 28 achieved year-on-year export growth during the month under review, it said.
The growth in April this year was noticed in “almost” all sectors and all regions, EEPC chairman Pankaj Chadha said.
“Decline was majorly noted in WANA, where the region has been significantly impacted by the regional conflicts. However, within the region, exports to Oman increased, which is a positive indicator, especially due to the recently signed India-Oman CEPA,” he said. The India-Oman free trade agreement (FTA) is scheduled to be operationalised on June 1.
Chadha pointed at practical issues inhibiting full advantages of various FTAs India signed recently. India has signed a slew of FTAs with major partners, but the industry needs to understand key challenges in market access in these countries to make the most of such deals, he said in a statement.
He expressed concerns over protectionist approach adopted by some trade partners. “While bilateral trade agreements are essential in the growing protectionism, it is essential that the government and industry, along with the Indian Missions abroad, collaborate to identify and address the non-tariff measures that create market access challenges,” he said.
