Engineering Goods to WANA Region Drop 51 PC in March
UAE, Saudi trade plunges, but global demand keeps overall exports positive
Chennai: Engineering goods exports to West Asia and North Africa (WANA) region declined 50.7 per cent in March following the closure of Hormuz Strait.
Among the major exporting countries, exports to UAE and Saudi Arabia conceded substantial year-on-year drop of 67 per cent and 45 per cent, respectively in March, as per the data of EEPC.
With the UAE being a trade-transhipment hub, several Indian exporters have warehouses there for further trade with Europe, Africa, and the USA. The recent geopolitical conflicts in the region have also impacted these warehouse activities.
The March shipments affected overall exports in the fiscal as well. Among the 25 key destinations for Indian engineering goods, exports to the second-largest market, the UAE, and the fourth-largest market, Saudi Arabia, however, slumped by 10% and 13%, respectively, in FY26.
Despite the extreme supply disruption following the Iran War, the month of March 2026 witnessed 1.13 per cent year-on-year growth in overall engineering exports. Engineering shipment from India in March 2026 rose to US$10.94 billion from US$10.82 billion in March 2025.
Pankaj Chadha, Chairman, EEPC India, said that Indian engineering exports exhibited remarkable resilience as it achieved record value for the second consecutive year.
"The export growth came at a time when global trade faced unprecedented challenges in the form of the geopolitical crisis in the Middle East and West Asia, which blocked one of the key sea routes in the region. Despite these external pressures, India’s overall engineering exports remained positive in FY26 in North America, Europe, Latin America, etc. Only exports to the WANA region suffered due to the direct consequence of the conflict. This stellar performance is surely a testament to the perseverance and determination of our exporting community," he said.
