Indian Engineering Exports Show Resilience Amid Geopolitical Tensions
US-bound engineering exports resilient; WANA shipments drop 51% amid West Asia tensions
The Economic TimesImage: The Economic Times
Despite geopolitical tensions and high tariffs, Indian engineering exports to the US grew by 2.3% to $19.60 billion in FY26. However, shipments to the West Asia and North Africa (WANA) region plummeted by 51% due to supply chain disruptions. Overall, engineering exports reached a record $122.43 billion, marking a 4.86% increase from the previous fiscal year.
- 01Indian engineering exports to the US grew by 2.3% to $19.60 billion in FY26.
- 02Overall engineering exports reached a record $122.43 billion, a 4.86% increase from FY25.
- 03Shipments to the WANA region dropped by 50.7% amid supply chain issues.
- 04Exports to the UAE and Saudi Arabia decreased by 67% and 45%, respectively.
- 05The government's RELIEF scheme helped maintain trade continuity during the crisis.
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In the financial year ending March 2026, Indian engineering exports demonstrated resilience, with total shipments reaching $122.43 billion, up 4.86% from the previous year. The US remained the largest market, recording a 2.3% increase to $19.60 billion. However, exports to the West Asia and North Africa (WANA) region fell sharply by 50.7% due to supply chain disruptions caused by geopolitical tensions, particularly the closure of the Strait of Hormuz. Exports to the UAE and Saudi Arabia saw significant declines of 67% and 45%, respectively. In March 2026 alone, engineering exports amounted to $10.94 billion, reflecting a 1.13% growth despite ongoing challenges. The Engineering Export Promotion Council (EEPC) India highlighted the achievement as a testament to the exporting community's perseverance amid global uncertainties. The government's Resilience & Logistics Intervention for Export Facilitation (RELIEF) Scheme, with an allocation of ₹497 crore (roughly $60 million USD), played a crucial role in sustaining trade during the crisis. Looking ahead, India aims to achieve $250 billion in engineering exports by 2030, with continued focus on market diversification and policy support.
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The decline in exports to the WANA region may lead to reduced trade opportunities for Indian exporters, affecting jobs and economic stability in related sectors.
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