India's engineering goods exports reached $11.48 billion in June, marking a 21% year-on-year increase, with shipments to China jumping 74% despite ongoing disruptions to global shipping routes.

India's engineering sector demonstrated robust growth in June, with exports climbing to $11.48 billion compared to the same month last year, according to the Engineering Exports Promotion Council (EEPC) India. The increase was primarily driven by surging demand from China, where shipments nearly tripled at 74% growth to $361.47 million. The United States remained India's largest market for engineering goods at $1.95 billion, followed by strong performance in Germany and Oman.

Exports to Oman showed particularly striking growth, more than quadrupling to approximately $259 million, while shipments to Turkey reversed a significant decline seen in the previous year. Engineering products accounted for 28.4% of India's total merchandise exports in June. However, some categories faced headwinds, with declines recorded in lead products, internal-combustion engines, and office equipment among others.

Despite these gains, the sector faces mounting pressure from disruptions in the Red Sea and Strait of Hormuz, which have increased freight, insurance, and transit costs. Exports to the United Arab Emirates and Saudi Arabia declined during the month, though the sharp jump in Oman shipments kept the West Asia and North Africa region in positive territory overall. For the first quarter of the fiscal year ending June 2027, engineering exports reached $34.14 billion, up 18.09% from $28.91 billion a year prior.

Pankaj Chadha, EEPC India Chairman, noted that the sector has remained resilient despite regional disruptions and called for continued government support to sustain growth momentum. Twenty-seven of 34 engineering product categories recorded year-on-year increases in June, indicating broad-based strength across the sector.