India's engineering exports rise 21 pc in September on strong US, China demand

New Delhi: India's engineering goods exports rose 20.91 per cent year-on-year to $12.17 billion in September 2026, marking the sixth consecutive month of growth, driven by strong demand from the United States, the United Kingdom, China and South Korea, an industry chamber said on Wednesday.

The statement from EEPC INDIA said strong demand from these markets helped sustain double-digit export growth in September even as regional tensions and logistical challenges dragged down shipments to the UAE and Saudi Arabia.

Higher exports of copper and copper products, iron and steel, electrical machinery and equipment, aluminium products, and two- and three-wheelers led the growth. As many as 30 of 34 engineering panels grew year-on-year, while four panels, including office equipment, machine tools, lead and products, and zinc and products, posted year-on-year declines in exports.

Despite punitive tariffs on iron & steel and aluminium, shipments to the US surged 55.7 per cent year-on-year to $2.19 billion in September this year. The US also remained the top destination for Indian engineering goods during the month as well as in the April-September period of the current fiscal. Exports to China grew 42 per cent to $430.1 million.

In contrast, exports to the UAE declined 4.5 per cent, while shipments to Saudi Arabia fell 26.2 per cent amid continued logistics disruptions.

Exports to Oman, however, rose 59 per cent to $136.3 million, due to the India-Oman free trade agreement that took effect in June.

"India’s September 2026 performance, while commendable, exposes structural vulnerabilities. Engineering exports rose to $12.17 billion, even as imports increased 12.3 per cent to US$15.6 billion, leaving a US$3.43 billion engineering trade deficit," said Pankaj Chadha, Chairman, EEPC India.

He noted that the import surge reflects both rising domestic investment and continued dependence on North East Asian and European supply chains, collectively accounting for over 62 per cent of India’s engineering imports.

India should focus on reducing import intensity in precision machinery and components, diversifying away from concentrated suppliers, and addressing market-specific frictions—such as CBAM in Europe, rising protectionism and West Asia’s logistics disruption, he added.

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