India engineering exports record strong June growth despite Red Sea and Strait of Hormuz disruptions
India's engineering exports rose 21% year-on-year to $11.48 billion in June, driven by robust demand from China, the United States, Germany and Oman, even as exporters grappled with shipping disruptions in the Red Sea and Strait of Hormuz, Reuters reported citing engineering exporters' body EEPC India.
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The rise in engineering exports comes at a time when India's broader merchandise trade is facing pressure from higher freight, insurance and transit costs after disruptions in the Red Sea and Strait of Hormuz affected shipping routes. Exporters said the strong performance of engineering exports is helping provide a buffer for overall merchandise exports.
Engineering exports cross $10 billion for third consecutive month
Engineering exports, which account for more than a quarter of India's total merchandise exports, increased 18.09% year-on-year to $34.14 billion during April-June, the first quarter of fiscal 2026-27, from $28.91 billion in the same period a year earlier.
Engineering products accounted for 28.4% of India's total merchandise exports in June, according to government quick estimates cited by EEPC India.
"The sector has remained resilient despite disruptions to trade flows arising from the crisis in West Asia and the Middle East," EEPC India Chairman Pankaj Chadha said.
"Engineering goods exports in the last three months of the current fiscal have stayed above $10 billion," Chadha said, adding that continued government support would be needed to maintain growth amid emerging risks.
China, US and Oman drive engineering exports growth
China posted the strongest growth among key markets, with India's engineering exports to the country jumping 74% from a year earlier to $361.47 million in June. India's overall exports to China also rose nearly 37% in the fiscal year ended March to about $20 billion.
The United States remained the largest market for Indian engineering goods during the month, with exports worth $1.95 billion. Exports to Oman more than quadrupled to nearly $259 million.
Exports rose across all regions in June, although shipments to the United Arab Emirates and Saudi Arabia declined. EEPC India said a sharp increase in exports to Oman helped keep engineering exports to the West Asia and North Africa region in positive territory.
India also recorded export growth to Turkey, reversing a significant decline last year.
Twenty-seven of the 34 engineering product categories registered year-on-year growth in June, while exports of lead and lead products, internal-combustion engines, cranes, lifts and office equipment declined, according to EEPC India.
