New Delhi: India’s engineering exports registered strong growth in February 2026, crossing the $10 billion mark despite ongoing geopolitical tensions and a slowdown in global trade, according to a report by the Engineering Export Promotion Council of India.

The report noted that India's engineering exports in 2026 grew 12.9 per cent year-on-year (YoY) to reach $10.36 billion during the month. Out of 25 key export destinations, shipments to 17 countries recorded positive growth, signalling resilience in the sector.

Mixed trends across key export markets

While exports to major markets such as the United States and the United Arab Emirates declined, shipments to countries including China, Saudi Arabia, the United Kingdom, Singapore, and the Republic of Korea showed notable improvement.

Engineering exports to China more than doubled to $436.18 million, compared to $207.45 million in the same period last year.

However, exports to the US — India’s largest market — fell 4.9 per cent YoY to $1.57 billion, while shipments to the UAE, the second-largest destination, declined by 14 per cent.

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Exporters face rising costs and supply chain challenges

EEPC India Chairman Pankaj Chadha described the February performance as a “silver lining” amid persistent challenges in global trade.

Exporters continue to face rising logistics costs, including war-risk surcharges, high insurance premiums, and elevated freight charges, alongside energy price volatility and shortages of critical raw materials.

Engineering Sector Remains Key to India’s Exports

Engineering goods accounted for 28.3 per cent of India’s total merchandise exports in February 2026, slightly lower than 28.5 per cent in January, according to official data.

Chadha also welcomed the government’s ₹497 crore Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme, aimed at providing credit insurance support to exporters impacted by the West Asia conflict.

Outlook amid geopolitical uncertainty

Prime Minister Narendra Modi has cautioned that the ongoing West Asia crisis could pose significant challenges for both India and the global economy.

Despite these headwinds, the latest data suggests that India’s engineering export sector continues to demonstrate resilience, supported by diversified markets and policy interventions.

IANS