India's engineering goods exports reached a record of US dollar (US$) 122.43 bn in FY 2025-26, surpassing the previous US$116.75 bn in FY2024-25 and registering growth of about five per cent, EEPC India said on Wednesday. The council characterised the outcome as a demonstration of sustained competitiveness in global markets and resilience in the face of external shocks. The record was achieved against a backdrop of geopolitical tensions and supply chain disruptions stemming from the West Asia conflict, shifting trade policies under the Trump administration and elevated freight and energy costs. EEPC India said exporters responded through market diversification, introduction of new product lines, restructuring of supplier networks and strategic use of free trade agreements to access alternative destinations and mitigate concentrated risk. Even in March 2026, when one of the key sea routes was disrupted, engineering exports posted marginal growth of one point one per cent, rising to US$10.94 bn from US$10.82 bn in March 2025, which the council cited as evidence of adaptability. The council emphasised that exporters maintained momentum by adjusting logistics plans, diversifying buyer bases, optimising inventory management and preserving contractual performance under strain. EEPC India chairman Pankaj Chadha attributed the performance to industry initiative complemented by timely policy support and said the engineering community had identified fresh opportunities while pursuing both market and product diversification. He noted that free trade agreements had provided a practical framework for swift geographic pivots as traditional trade routes and procurement patterns altered under external pressures. Looking ahead, the council said it remained cautiously optimistic on export growth in FY 2026-27 while flagging that the inflationary environment and global uncertainty warranted a measured outlook. Chadha expected geopolitical tensions to ease and conflicts to settle, a development the council suggested would pave the way for more robust engineering export expansion in the current fiscal if those conditions materialised.