TLI Staff
New Delhi: India’s engineering goods exports surged 10.4% year-on-year to US$10.40 billion in January 2026, driven by strong performance in copper, iron & steel, and motor vehicles, even as shipments to the United States declined during the month.
Cumulatively, exports during April–January FY26 rose 4.52% year-on-year to US$101.13 billion, crossing the $100-billion milestone for the first time in the current fiscal.
US shipments dip, UAE and Saudi Arabia shine
Engineering exports to the US — India’s largest market — fell 6.8% to US$1.51 billion in January 2026 from US$1.62 billion a year ago. Despite the decline, the US retained its position as the top destination.
In contrast, exports to several key markets posted robust growth. Shipments to the UAE jumped 42.4% to US$871.48 million, while exports to Saudi Arabia rose 33.3% to US$518.58 million.
Germany recorded a 23% increase to US$443.49 million, the UK saw a 17.6% rise to US$408.91 million, and exports to China grew 26.7% to US$304.85 million.
Among the top 25 markets, 19 registered positive growth in January, while six — including Mexico, France, Bangladesh, Turkey and Thailand — saw declines.
Copper, steel, vehicles lead growth
Among key product categories, copper exports surged 52% year-on-year to US$346.9 million. Iron & steel shipments rose 22% to US$912 million, while motor vehicle and car exports increased 28% to US$876.9 million.
Overall, 28 out of 34 engineering panels recorded positive growth in January. Declines were reported in segments such as nickel products, aircraft and spacecraft parts, hand and cutting tools, and mica products.
Engineering goods accounted for 28.5% of India’s total merchandise exports in January 2026 and 27% on a cumulative basis for April–January FY26.
Industry seeks policy support amid global realignments
Commenting on the performance, EEPC India Chairman Pankaj Chadha said the favourable base effect contributed to the double-digit growth and noted that exports rebounded across most regions despite ongoing global trade realignments driven by shifting geopolitics.
He expressed optimism that exports could surpass US$120 billion in FY26, citing government initiatives such as the Market Access Scheme as key enablers. However, EEPC India has urged the government to reconsider the decision to halve RoDTEP benefits amid persistent global uncertainties.
Region-wise, North America and the European Union remained the top export destinations in January. While most regions saw growth during the month, declines were reported in North America, Sub-Saharan Africa, Latin America and the CIS. On a cumulative basis, exports expanded across regions except WANA, Other Europe and the CIS.