Engineering exports to WestAsia, including UAE and Saudi Arabia, surged in May with growth driven by alternative routes and markets like the US, China, Sri Lanka, and Malaysia, boosting overall exports by 24.4%.
Engineering exports to key markets in West Asia staged a sharp rebound in May as the exporters found alternative routes, ports and even vessels get to the markets of the United Arab Emirates (UAE) and Saudi Arabia.
Engineering exports to UAE grew 81.7% on year to $ 1.24 billion in May after contracting 66.8% in March when the war in West Asia started and shrinking 31.7% in April. A similar trend was seen in shipments to Saudi Arabia. In May growth in engineering exports was at 11.6% to $ 375.9 million. In March the decline of 45% was recorded while in April the engineering exports to Saudi Arabia were down 9.7%.
This rebound helped engineering exports in May grow 24.4% to $ 12.3 billion. The share of the sector in overall exports in May to 27.2%, up from 25.8% in May of 2025.
The biggest market for the sector, the US, is also showing a pick-up in demand. In May exports of engineering goods to the US were up 9.3% on year to $ 1.89 billion. In April growth in the US market was 4.9% and in March there was a contraction of 2.3%.
In May Sri Lanka and Malaysia were the markets showing the highest growth. Engineering exports to Sri Lanka were up by 360% to $ 357.7 million while in Malaysia the growth was 234% and value of shipments was $ 322.9 million.
“Indian engineering exporters have been diversifying both their products and markets to expand their presence and de-risk exposure to dominant markets. This strategy has helped them grow despite geopolitical uncertainty, supply chain realignment, and protectionist trade policies in several major markets,” Chairman of Engineering Export Promotion Council Pankaj Chadha said.
China is another market that is showing a lot of promise. Engineering goods exports to China were up 63% to $ 338 million in May. In April this growth was 81.7% and in March, it was 111%. In 2025-26 the engineering exports to China were up 32.4% on year to $ 3.5 billion.
The biggest contributor to the exports from the sector was automobiles. Auto exports were up 14% to $ 2.4 billion. Within the auto sector, car and motor vehicles had the biggest share. Their exports were up 20% to $ 1.02 billion. The auto sector was followed by industrial machinery with exports to $ 1.8 billion and iron and steel and their products.
