India’s engineering exports gave a stellar performance in May 2026 as it reached a monthly all‑time high of USD 12.3 billion and recorded a substantial growth of 24.5per cent. This performance was possible at a time when the exporting community is navigating a complex global environment marked by slower growth, geopolitical uncertainty, supply‑chain realignment, and protectionist trade behavior in several major markets. At the same time, the global economy is still being shaped by uneven recovery, high borrowing costs in some economies, and fragile manufacturing demand. UNCTAD’s latest outlook says the world economy is expected to slow to around 2.7 per cent growth in 2026, still below the pre‑pandemic average, as trade tensions, fiscal strain, and uncertainty weigh on investment and demand. UNCTAD also says global trade reached a record level in 2025, but conflict, shipping disruptions, and higher trade costs are making the 2026 environment more fragile. The WTO has also turned cautious, with one update projecting merchandise trade growth of just 0.5 per cent in 2026, signaling a much softer trade cycle than in 2025. In this backdrop, India’s engineering exports have managed to register solid performance which indicates that demand remains available for competitive suppliers with right product and market combination.

 

This performance is significant because engineering goods are one of India’s most important export categories and a good indicator of industrial competitiveness. In April‑May 2026, India’s engineering exports grew by almost 17per cent as it reached USD 22.6 billion. Strong gains were witnessed in several key segments including metals such as copper, zinc, aluminium, nickel, iron and steel, etc. Growth was also witnessed in two and three wheelers, railway equipment, machine tools, motor vehicles and electrical machinery. In terms of destinations, in a long time, Indian engineering exports registered growth in all the regions in both May 2026 as well as April‑May 2026. Regions which witnessed export decline previously such as WANA, South Asia and CIS also recorded significant export growth. Economies such as Sri Lanka, Malaysia, Vietnam, China, UAE, etc. recorded double digit export growth which is a very positive trend for Indian engineering exports. The engineering export figures show strength in automobiles, electric machinery, iron and steel, and several metal‑based products. Auto components and parts rose 6.70 per cent to USD 1.5 billion, electric machinery and equipment grew 14.93 per cent to USD 2.9 billion, iron and steel rose 12.54 per cent, and motor vehicles and cars increased 12.43 per cent. These are encouraging signals because they reflect depth across both intermediate and finished engineering goods.

 

While India’s performance has been remarkable the broader trade setting in the world remains mixed. Many economies are still managing inflation, weak consumer demand, and trade frag mentation. Companies are also reworking supply chains to reduce overdependence on any single country, especially China. For India, that means there is room to expand, but only if exporters can improve scale, quality, logistics, and compliance with destination‑country standards. In this regard, the support of the Ministry of Commerce and Industry is of utmost importance for the Indian exporters. faster policy relief, cheaper trade finance, and stronger risk protection is the need of the hourto help exporters absorb the shock of volatile global markets. While we are thankful to the government for the announcement of the Export promotion Mission, faster implementation of the scheme would be of much benefit for the exporters.

The current global trade situation also reinforces the need for market diversification. Dependence on a few destinations can leave exporters vulnerable to demand swings, currency shifts, and policy changes. To address this, EEPC India has been conducting a number of events in new markets. In coming month that is July 2026, two events are set in Africa which include Africa Build and Megawatt 2026 happening in Ghana and Africa Rail happening in South Afri ca. I would request my fellow members to visit the EEPC official website to get more details on these events. Overall, India’s engineering export story is one of cautious optimism. The sector is benefiting from global supply‑chain changes and steady demand in selected product groups, but it must operate in a more competitive and uncertain trade landscape and we are positive that with the proper guidance of the Government we will be able to achieve the desired export target of USD 250 billion by 2030.