Engineering goods exports to West Asia drop by 50%, Pg15

Key Highlights:

• India's engineering goods exports to the West Asia and North Africa (WANA) region decreased by 50% to $864 million in March due to the Iran war and closure of the Strait of Hormuz.
• Engineering goods constitute approximately a quarter of India's total global goods exports in FY26.
• Overall engineering goods shipments grew by only 1.1% in March, a sharp contrast to the 12.01% growth in February.
• Exports to the UAE, a major transhipment hub, have been significantly impacted by the geopolitical conflicts.

Detailed Insights:

• The decline in exports to WANA significantly impacted overall engineering goods shipments, which include items from iron and steel to automobile components.
• The UAE's role as a trade-transhipment hub means geopolitical conflicts disrupt Indian exporters who use warehouses there for trade with Europe, Africa, and the US.
• Specific engineering products saw declines in March, including IC engines and auto components, while two and three-wheelers exports increased.
• Despite the export slowdown, overall imports increased by 5.6% to $13.3 billion in March compared to $12.6 billion in March 2025.

Key Concepts Involved:

• Engineering Goods: A wide range of industrial products, from machinery and tools to transport equipment and metal products.
• Transhipment Hub: A location where goods are transferred from one mode of transport to another, often for international export.
• FTA (Free Trade Agreement): An agreement between two or more countries to reduce or eliminate trade barriers.