India’s engineering sector has emerged as a competitive merchandise export segments over the last 12 years and now accounts for more than one-fourth of the total goods exports from the country.
Indian engineering exports reached $122.43 billion in the financial year 2025-26, rising nearly 75% from $70 billion in FY 2014-15.
Vimal Anand, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India, highlighted that the remarkable rise of India’s engineering exports over the past twelve years reflects the growing strength, competitiveness, and resilience of the country’s manufacturing and export ecosystem.
“Engineering exports have expanded from around $70 billion in FY 2015 to $122.43 billion in FY 2026, while their share in India’s merchandise exports has steadily increased from about one-fifth of total exports to nearly 28 percent, reaffirming the sector’s position as the largest contributor to the country’s merchandise export basket,” he said.
Anand noted that this growth has been achieved despite an increasingly complex global trade environment marked by geopolitical uncertainties, supply chain disruptions, and evolving market dynamics, underscoring the resilience and adaptability of Indian exporters.
He further observed that the engineering export basket has become increasingly diversified over the years, with Indian products establishing a strong presence across major global markets, including North America, the European Union, and other advanced economies, reflecting the quality, reliability, and global competitiveness of Indian engineering goods.
Emphasising that exports remain an important driver of economic growth, employment generation and integration into global value chains, he stated that the Government has adopted a proactive and consultative approach towards export promotion, maintaining continuous engagement with industry stakeholders to understand emerging challenges and respond through timely policy interventions.
He stated that the Government’s close engagement with exporters and industry associations proved particularly valuable during recent disruptions to trade routes and logistics networks arising from geopolitical developments in the West Asia region, enabling the timely identification of challenges and facilitating appropriate support measures to ensure the continuity of exports.
“This collaborative approach has enabled the Government to address sector-specific concerns and support exporters during periods of global disruptions while facilitating new opportunities for growth,” Anand said.
He further highlighted the Government’s sustained focus on improving market access for Indian exporters through FTAs with key partners, including the UK, EU, UAE, Australia, and EFTA countries, to name a few, aimed at reducing trade barriers, enhancing the competitiveness of Indian products, and expanding India’s participation in global value chains.
Some of the measures taken by the government, such as the Market Access Initiative (MAI) Scheme, Brand India Engineering Campaign, Production Linked Incentive (PLI) Scheme, National Single Window System (NSWS), Quality Control Orders (QCOs), and the One District One Product (ODOP) Scheme, have strengthened the export ecosystem and enhanced India’s position in global value chains. Together, these measures propelled Indian engineering exports to three consecutive years of record highs- USD 109.3 billion in FY24, USD 116.67 billion in FY25, and USD 122.43 billion in FY26.
Pankaj Chadha, Chairman, EEPC India, stated that the fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation, and stable private consumption. India has been one of the dynamic economies that gained greater presence in the space gradually vacated by developed countries.
“India’s engineering sector is one of the fastest-growing and most diverse industrial sectors in the country. Western region with contribution of nearly 39% in India’s total engineering exports continues to be a pillar of India’s export strength with $47.5 billion of engineering exports in 2025-26,” Chadha said.
He added that global trade momentum has faced headwinds from tightening financial conditions, slowing demand in advanced economies, and currency volatility.
“However, export volumes have remained resilient, buoyed by targeted government interventions, notably the RELIEF Scheme, aimed at offsetting high logistics and insurance costs, and interest subvention support for key sectors, which have provided critical assistance to exporters,” he said.
Ashwin R Golapkar, Dy DGFT, RA Mumbai, elaborated on the role of the Government in bolstering the meteoric rise of the Indian engineering sector and in retaining its status as the largest contributor to exchequer earnings from exports.
“The Export Promotion Mission (EPM), backed by an outlay of Rs. 25,060 crore for the period 2025–31, provides a unified digital export support framework through its Niryat Protsahan and Niryat Disha components,” he said.
