Recently S&P Global published a report on global trade trends in 2026: “Glob al Insight Research: The Age of Agility”. The report clearly indicates that while 2025 was marked by the seismic shifts in global trade dynamics, 2026 will mainly be a year of recalibration to these changed dynamics. It will definitely bring more challenges as the global uncertainty continues to impact economy and trade. In these challenging times, India’s export performance has remained significantly positive – a very important milestone for the economy. The Indian engineering exports continued its growth journey in the first month of the current fiscal and recorded a growth of around 9percent. This is a significant achievement given the fact that regional disputes in the Middle East region continue to affect global trade and logistics. As per the government, the share of engineering in total merchandise exports was recorded at 23.8 percent in April 2026, a bit lower than 24.9 percent in April 2025. The growth in April 2026 was basically attributed to significant growth of Aluminium and its products (38percent), Copper and its products (80percent), Electric machinery and equipment (9.5percent), two and three wheelers (36percent), and Auto components/parts (7.2percent) among others. Out of 34 products panels, as much as 28 panels achieved year‑on‑year growth in exports during the month. Among the exporting regions, top destination North America and EU saw growth of 7.1percent and 13percent respectively in April 2026.The performance of India’s engineering exports remained positive in almost all major regions including North America, European Union (EU), North East Asia, South Asia, etc. Decline was only noted in India’s exports to WANA mainly due to decline in exports to UAE and Saudi Arabia, the two countries which have been significantly affected by the regional conflicts.

Interestingly although India’s exports to WANA region declined, it recorded positive change in Oman, a country with which India has recently signed a comprehensive FTA. The growth was recorded at 17.5 percent. In fact, India has recorded positive engineering exports to all those countries with which it has recently signed FTA only barring UAE. In Australia, our exports have grown by around 22.5 percent, In the UK it has grown by 40.8 percent and in the EU, it went up by 13 per cent. This is a significant achievement by our exporting community. However, as we deepen our cooperation with our major partners through FTAs, we also need to address the non‑tariff measures that create market access challenges for our exporters to make the FTAs fruitful. As per the recent Global Trade Update (UNCTAD), trade policies in recent times are becoming more interventionist and while tariffs are indeed rising, it is the non‑tariff measures that are creating the major obstacles to trade – As per the report, tariff increased by 10 percent for developed economies, 16 percent for developing economies and 18% for least developed economies however still non‑tariff barriers remain the main cause of cost escalation for around 88 percent of the global economies. The report further indicates that while tariff plays a major role in mostly developing nations including India, most of the developed nations including Europe, USA, Oceania and Latin America mainly mostly impose non‑tariff barriers to restrict market access and the developing countries especially the MSMEs of those countries face the maximum burden as they are unable to meet these NTMs. The report further indicates that regulatory cooperation can significantly reduce trade costs ‑ In Africa, even limited cooperation could re duce costs by 30‑40 percent in sectors such as agriculture and manufacturing. Therefore, mapping and harmonization of corresponding regulations is essential to increase exports. There is also need for proper infra structure within India which can handhold the exporters especially the MSMEs to fulfill regulatory compliance of the export markets. In several instances, the cost of compliance is significant and financial support for MSMEs is needed in such cases. Moreover, reducing the regulatory gaps between India and its partner countries through FTAs can significantly address the above issues. These efforts would definitely contribute towards expanding our export reach manifold.

Finally, I would like to invite EEPC members to participate in the upcoming exhibitions – SUBCON in Birmingham, UK and JIMEX in Jordan. The Indian Railway Sourcing Week is also scheduled in mid‑June. Participation in such events would definitely broaden our reach and help us fulfill the Government of India’s Viksit Bharat objective.