India’s engineering goods exports kept their momentum in September, rising by nearly 21 per cent to $12.17 billion, as strong demand from the United States and China helped offset logistics problems and regional tensions that hit shipments to parts of West Asia. The figures, shared by the Engineering Export Promotion Council of India (EEPC India) on Wednesday, mark the sixth straight month of growth for the sector.
It is a result that matters beyond one month’s trade data. Engineering goods are among India’s largest export categories, covering everything from steel and copper products to electrical machinery and two-wheelers. When this sector grows at double digits, it usually means factories are busy and order books are healthy.
September’s performance was broad based. Thirty of the 34 engineering panels tracked by EEPC India grew compared with a year earlier. Only four panels recorded declines: office equipment, machine tools, lead and products, and zinc and products.
What drove the September growth
Engineering goods exports stood at $12.17 billion in September 2026, up 20.91 per cent from $10.06 billion in September last year, EEPC India said. For the first six months of the financial year, April to September, shipments reached $70.87 billion, up 19.7 per cent from $59.17 billion in the same period a year earlier.
The growth was led by higher exports of copper and copper products, iron and steel, electrical machinery and equipment, aluminium products, and two- and three-wheelers.
EEPC India chairman Pankaj Chadha said the high double-digit growth showed the sector could withstand external shocks. Trade has faced repeated disruptions in recent years, and tensions in West Asia have added to the uncertainty, he said. Government support and trade agreements with Australia, the UK and Oman have helped Indian industry stay part of global supply chains, he added.
America bought more, despite tariffs
The most striking part of the September numbers is the United States. Shipments to the US surged 55.7 per cent from a year earlier to $2.19 billion, even though punitive tariffs apply to iron and steel and aluminium. The US remained the top destination for Indian engineering goods, both in September and across the April to September period.
Exports to China grew 42 per cent to $430.1 million. Demand from the United Kingdom and South Korea was also strong, EEPC India said, helping sustain double-digit growth for the month as a whole.
The picture was different in West Asia. Exports to the UAE fell 4.5 per cent, while shipments to Saudi Arabia dropped 26.2 per cent, as regional tensions and logistical challenges disrupted trade routes. Exports to Oman rose 59 per cent to $136.3 million, a gain EEPC India linked to the India-Oman free trade agreement that took effect in June.
The other side of the ledger
Chadha was careful not to present September as an unqualified success. While engineering exports rose to $12.17 billion, imports in the sector increased 12.3 per cent to $15.6 billion, leaving an engineering trade deficit of $3.43 billion.
He described the performance as commendable but said it exposed structural vulnerabilities.
The point is worth keeping in mind when the headline number is celebrated. Export growth and import dependence are travelling together at the moment.
What exporters are watching next
Two trade agreements are now central to the outlook. The free trade deal with New Zealand is set to take effect shortly, and the agreement with the European Union is expected to come into force by the end of this financial year.
The risks have not gone away. Geopolitical tensions and trade route disruptions remain the main downside risks for the sector, according to EEPC India.
Even so, Chadha said that given the trend in the first six months of the year, engineering goods exports were expected to close the year on a positive note.
For now, September’s numbers give Indian manufacturing a clear, if qualified, reason for confidence. The challenge ahead is to turn a strong export run into deeper domestic capacity and markets that do not depend on any single route or buyer.
FAQs
How much did India’s engineering exports grow in September 2026?
Engineering goods exports rose 20.91 per cent from a year earlier to $12.17 billion in September 2026, up from $10.06 billion in September 2025, according to EEPC India.
Which countries drove the growth?
The United States was the largest driver, with shipments up 55.7 per cent to $2.19 billion. Exports to China rose 42 per cent to $430.1 million, and demand from the UK and South Korea was also strong.
Which markets declined in September?
Exports to the UAE fell 4.5 per cent and shipments to Saudi Arabia fell 26.2 per cent, amid regional tensions and logistics disruptions. Exports to Oman, by contrast, rose 59 per cent to $136.3 million.
What is the engineering trade deficit?
Engineering imports rose 12.3 per cent to $15.6 billion in September, leaving a $3.43 billion engineering trade deficit for the month, EEPC India said.
What is the outlook for engineering exports this year?
EEPC India expects exports to close the year on a positive note, supported by trade deals with New Zealand and the European Union, while flagging geopolitical tensions and trade route disruptions as key risks.
Figures in this article are from EEPC India statements reported on Wednesday, October 28, 2026. September data are quick estimates and may be revised.
