India's Engineering Exports Jump 24.5% in May, Boosting Manufacturing Outlook

According to data released by the Engineering Export Promotion Council (EEPC) India , the country's apex engineering export promotion body, India's engineering goods exports recorded a robust 24.48 per cent year-on-year growth in May 2026, reaching USD 12.31 billion compared with USD 9.89 billion in the same month last year.

The strong performance underscores the growing competitiveness of India's manufacturing sector and its ability to sustain export momentum amid global economic uncertainties and geopolitical disruptions.

During the first two months of the current fiscal year, April-May 2026-27 , engineering exports stood at USD 22.66 billion , registering a 16.8 per cent increase from USD 19.40 billion in the corresponding period of the previous fiscal.

EEPC India Chairman Pankaj Chadha said the sector had successfully navigated a challenging global environment marked by the West Asia conflict , supply chain disruptions and trade uncertainties. He noted that the engineering industry demonstrated resilience and adaptability, supported by government initiatives aimed at improving trade facilitation and export competitiveness.

Industry experts view the sustained growth as a positive indicator for India's ambitions to strengthen its position as a global manufacturing hub. Expanding engineering exports have been driven by rising demand across key international markets, improved production capabilities and greater integration into global value chains.

However, Chadha cautioned that challenges remain despite the announcement of a peace deal between the United States and Iran. He said disruptions in energy markets and their downstream impact on trade and logistics could continue to affect global commerce in the near term.

To sustain growth, EEPC India emphasized the need for continued focus on market expansion, product diversification and export innovation , helping Indian manufacturers reduce dependence on specific regions while enhancing their global footprint.