New Delhi, June 24, 2026: Engine manufacturer Cummins India is banking on strong domestic demand to drive growth in fiscal year 2027, even as geopolitical tensions in the Middle East continue to create uncertainty for exports and global supply chains.
The company expects India’s infrastructure expansion and industrial growth to offset challenges arising from weaker export demand. According to Managing Director Shveta Arya, domestic business segments are expected to remain the primary growth engine for the company in the coming year.
The ongoing conflict and uncertainty in the Middle East have increased logistics, commodity, and production costs for many Indian companies. Export-oriented businesses have also faced disruptions due to supply chain challenges and slowing demand in certain overseas markets. As a result, Cummins India expects exports to remain under pressure in the near term.
Exports accounted for approximately 17 percent of the company’s revenue during fiscal 2026. The segment recorded a decline during the March quarter, reflecting the impact of global economic uncertainty and geopolitical developments.
Despite these headwinds, the company remains optimistic about its growth outlook. Cummins India believes that robust domestic demand generated by the government’s infrastructure push will support double-digit revenue growth in fiscal 2027.
India’s capital expenditure program continues to create opportunities across multiple sectors. Large-scale investments in railways, airports, ports, energy infrastructure, and industrial projects are expected to increase demand for engines, power generation equipment, and related services.
The company counts major public sector organizations such as Indian Railways, BEML, and ONGC among its key customers. Demand from these sectors is expected to remain strong as government-backed infrastructure projects continue to expand across the country.
Data centers have emerged as another major growth driver for Cummins India. The rapid adoption of artificial intelligence, cloud computing, and digital services is fueling investments in data center infrastructure, increasing the need for reliable backup power systems and generators.
The commercial marine sector is also showing promising growth prospects. Rising government investments in ports, logistics networks, and coastal infrastructure are expected to boost demand for marine engines and related equipment in the coming years.
Industry analysts note that India’s strong domestic economic fundamentals are helping companies navigate global uncertainties. While export markets remain challenging, sustained infrastructure spending and industrial expansion continue to support business growth across multiple sectors.
With domestic demand remaining resilient, Cummins India believes it is well-positioned to capitalize on opportunities arising from India’s long-term economic growth story and infrastructure development plans.
Source: Reuters
Original Report: https://www.reuters.com/world/india/cummins-india-bets-local-demand-middle-east-conflict-clouds-exports-2026-06-24/
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