This is a critical time for global trade as it faces serious disruptions due to growing geopolitical issues affecting logistics including shipping routes, freight costs and supply chains. The recent logistics disruptions were noted in the Hormutz Straits, a very significant maritime route carrying almost a quarter of global seaborne oil trade and significant volumes of liquefied natural gas and fertilizers. The recent conflicts in the area has disrupted ship ping flows significantly. Exporters have complained of escalating financial burdens including War‑risk surcharges, high insurance premiums, extraordinary levies that escalating freight cost. Apart from that energy prices have skyrocketed and even in many cases exporters have faced critical raw materials shortage. The UNCTAD in a recent statement has specifically mentioned that the impact of the shock corroborate that of the earlier trends including COVID‑19 pandemic. At present Oil markets have reacted quickly, with rising Brent crude prices affecting energy, fertilizer and transport costs including freight rates, bunker fuel prices and insurance premiums. All these factors remain a great concern for Indian exporters as they keep a lookout on new developments in this area.

At this critical time, India’s export performance continues to remain steady which is a ray of positive light in the times of glum. After registering a marginal growth last month, in January 2026, India’s engineering exports increased by more than 10percent. This is despite the fact that engineering shipment in January 2026 at USD 10.4 billion was lower than that of December 2025 at USD 10.98 billion. Although the engineering shipment in December 2025 at USD 10.98 billion was the second highest of fiscal 2025‑26 and very close to that of November 2025 at USD 11.01 billion, the growth was marginal due to high base of the previous year as December 2024 saw engineering exports at USD 10.84 billion. While low growth of December 2025 resulted from lower statistical base, higher year‑on‑year growth in January 2026 was due to lower base last year. On a cumulative basis, engineering exports from India grew by 4.52 percent to USD 101.13 billion during April‑January 2025‑26 crossing over the USD 100 billion mark for the first time in the current fiscal. As per the quick estimates of the government, the share of engineering in total merchandise exports was recorded at an impressive 28.5 per cent in January 2026. The share was recorded at 27 percent on a cumulative basis during April – January 2025‑26. High exports and growth in January 2026 was attributed to abnormally high Copper exports securing more than 50per cent growth year‑on‑year along with decent to sizeable increase in exports of Iron and Steel, Aluminium and products, Motor Vehicles/Cars, Other construction machinery, and Ships, Boats and Floating Structures among others Region wise, North America and EU remained the top two exporting regions for Indian engineering. Also, export growth was recorded in all regions in January 2026 barring North America, SSA, Latin America and CIS. In cumulative terms increase was noted in all regions barring WANA, Other Europe and CIS. Country‑wise, USA remained the top destination although exports declined. USA is followed by UAE and Saudi Arabia both countries recording a y‑o‑y growth in exports in January 2026. Such achievements make us hopeful that even during difficult times, India’s engineering export performance will continue in a growth path.

Finally this year we also complete two years of signing the India‑EFTA Trade and Economic Partnership Agreement (TEPA). EFTA or Euro pean Free Trade Association comprises of four countries‑ Switzerland, Norway, Iceland and Liechtenstein –these are not very major markets for Indian engineering products and India also does not feature among the top 25 suppliers to these nations. Hence the FTA is expected to boost India’s presence in the above mentioned countries. This is significant for us. Additionally, given that the EFTA markets demand high‑technology engineering goods with stringent sustainability framework, the TEPA is expected to elevate India’s engineering product mix in terms of both technology and sustainability in the long run. Infact, India’s total engineering exports to the region increased by 18.3 percent in FY 2024‑25. Among the four EFTA member countries Switzerland and Norway recorded double digit growth in engineering exports.

I would also like to take this opportunity to reiterate the fact that EEPC is organising the biggest energy export under the patronage of Ministry of Power–Bharat Electricity Summit (BES) in the third week of March in New Delhi. It will serve as India’s premier global platform for power sector, bringing together several stake holders both from the government and the industry. I invite all my fellow exporters to join us at the Summit and help shape the future of India’s energy landscape.