New Delhi, April 23 (IANS) India’s engineering exports to the United States witnessed a growth of 2.3 per cent year-on-year to $19.60 billion in FY26, maintaining its position as the top destination despite higher tariffs, according to industry data released on Thursday.

Data compiled by the Engineering Export Promotion Council (EEPC) India suggested that overall engineering exports touched a record high of $122.43 billion in FY26, an increase of almost 5 per cent compared to $116.75 billion in the previous fiscal.

However, shipments to the West Asia and North Africa (WANA) region declined sharply amid geopolitical disruptions, it said.

Exports to key WANA markets were hit hard, particularly in March, when shipments to the region dropped by as much as 50.7 per cent due to supply chain disruptions following the closure of the Strait of Hormuz.

Among major destinations, exports to the UAE and Saudi Arabia fell steeply by 67 per cent and 45 per cent, respectively, during the month.

Despite these setbacks, several major markets recorded positive growth during FY26, including Germany, the UK, China, Italy, South Africa, Vietnam, Sri Lanka, and Malaysia.

On a regional basis, engineering exports to North America rose 1.9 per cent, while shipments to the European Union increased by 8.6 per cent during the fiscal year.

In contrast, exports to WANA declined 8 per cent for the full year, while shipments to Other Europe and CIS fell by 4.5 per cent and 5.9 per cent, respectively.

In addition, engineering exports in March 2026 rose marginally by 1.13 per cent year-on-year to $10.94 billion, despite supply disruptions triggered by geopolitical tensions in West Asia.

EEPC India Chairman Pankaj Chadha said the sector demonstrated strong resilience, achieving record exports for the second consecutive year despite unprecedented global challenges.

“The export growth came at a time when global trade faced severe disruptions due to geopolitical tensions in West Asia, which impacted key shipping routes. Despite these pressures, India’s engineering exports remained positive across major regions, except WANA,” he said.

He further noted that sustained growth would depend on a combination of market diversification, sectoral resilience and targeted policy support.

The government’s Resilience and Logistics Intervention for Export Facilitation (RELIEF) Scheme, aimed at addressing rising logistics and insurance costs during the crisis, helped maintain trade continuity, he noted.

According to government estimates, engineering goods remained the largest component of India’s merchandise exports in FY26, accounting for 27.71 per cent of the total.

–IANS

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