India's Engineering Goods Exports Jump 21% In June Despite Red Sea Disruptions

Engineering goods exports from India grew 21% year-on-year in June, touching $11.48 billion, according to industry body EEPC India, as reported by Reuters. The rise was driven largely by higher demand from China, the United States, Germany and Oman, even as shipping routes through the Red Sea and the Strait of Hormuz remained under pressure.

China emerged as a standout market, with exports to the country nearly touching $361.47 million, a jump of 74% compared with the same month last year. This builds on a broader trend seen through the last fiscal year, when India's total exports to China grew close to 37%, taking the figure to roughly $20 billion.

A Cushion Against Trade Pressures

According to exporters, cited by the report, this steady rise in engineering shipments is helping absorb some of the strain on India's overall merchandise trade, which has been facing higher costs on freight, insurance and transit following the Red Sea and Hormuz disruptions.

Looking at the broader quarter, engineering exports between April and June, the opening quarter of fiscal 2026-27, rose 18.09% to touch $34.14 billion, compared with $28.91 billion during the same period last year. This category alone makes up more than a fourth of India's total merchandise exports.

The US continued to be India's biggest buyer of engineering goods, accounting for $1.95 billion worth of shipments in June. Oman's numbers stood out too, with exports there growing more than fourfold to touch nearly $259 million.

Government estimates cited by EEPC India put engineering goods at 28.4% of the country's overall merchandise exports for the month.

Resilience Amid West Asia Crisis

EEPC India Chairman Pankaj Chadha described the sector's performance as resilient, noting that trade flows have continued despite ongoing turmoil in West Asia and the wider West Asia region.

"Engineering goods exports in the last three months of the current fiscal have stayed above $10 billion," Chadha reportedly said, adding that sustained government backing would be necessary to keep this momentum going as new risks emerge.

While exports grew across every region tracked in June, two major West Asian markets, the UAE and Saudi Arabia, saw a dip in shipments. The strong showing from Oman, however, was enough to keep the broader West Asia and North Africa region in growth territory, EEPC India noted.

Turkey also returned to growth after a steep fall in exports the previous year.

Out of 34 engineering product categories under review, 27 posted year-on-year (YoY) gains in June. The categories that slipped included lead and lead products, internal combustion engines, cranes, lifts and office equipment.