India's engineering goods exports climbed 21% year-on-year in June to $11.48 billion, driven by a dramatic 74% jump in shipments to China, according to data released Monday by engineering exporters' body EEPC India. The growth offers a critical buffer for India's broader trade balance, even as disruptions in the Red Sea and Strait of Hormuz push freight and insurance costs higher. Main Developments Exports to China reached $361.47 million in June, up from a year earlier, while overall Indian exports to China rose nearly 37% in the fiscal year ended March to about $20 billion. The United States remained the largest single market for Indian engineering goods, absorbing $1.95 billion worth of products during the month. Shipments to Oman more than quadrupled to nearly $259 million, helping keep engineering exports to the West Asia and North Africa region in positive territory despite declines to the United Arab Emirates and Saudi Arabia. Turkey also recorded export growth, reversing a significant decline seen last year. Read also: 3 reasons Iran rules out US talks despite Strait of Hormuz standoff For the first quarter of fiscal 2026/27, April-June, engineering exports increased 18.09% to $34.14 billion from $28.91 billion a year earlier. The sector accounted for 28.4% of India's total merchandise exports in June, according to government quick estimates cited by EEPC India. Background Twenty-seven of 34 engineering product categories registered year-on-year growth in June, while declines were recorded in lead and lead products, internal-combustion engines, cranes, lifts and office equipment. The sector has remained resilient despite disruptions to trade flows from the ongoing crisis in West Asia and the Middle East, EEPC India Chairman Pankaj Chadha said. Why It Matters Engineering exports, which account for more than a quarter of India's total merchandise exports, provide a crucial cushion as India's June merchandise trade deficit widened to $30.43 billion. Higher freight, insurance and transit costs from Red Sea and Strait of Hormuz disruptions have put mounting pressure on broader trade, exporters noted. What's Next Chadha said continued government support would be needed to maintain growth amid emerging risks. The body noted that engineering goods exports have stayed above $10 billion in each of the last three months of the current fiscal, suggesting sustained momentum if global conditions remain stable.