India’s engineering exports achieved a historic milestone in FY2025-26, reaching an all-time high of US$122.43 billion and further strengthening the country’s position as a global manufacturing and export powerhouse. The record performance reflects the growing competitiveness of India’s engineering sector, supported by policy reforms, industrial expansion, and increasing global demand for high-quality manufactured products.
According to the Department of Commerce, engineering exports have grown significantly from approximately US$70 billion in FY2014-15 to the current record level, highlighting the remarkable transformation of India’s manufacturing ecosystem over the past decade.
Engineering Sector Emerges as India's Largest Export Contributor
Engineering goods have become the single largest contributor to India’s merchandise exports, accounting for nearly 28% of the country’s total export basket. The sector’s share has steadily increased from around 20% a decade ago, demonstrating its growing importance in driving export-led economic growth.
The strong performance underscores India’s ability to compete globally across a wide range of engineering products, including machinery, industrial equipment, automotive components, electrical machinery, and capital goods.
Three Consecutive Years of Record Export Growth
The latest achievement marks the third consecutive year of record-breaking engineering exports. Export earnings increased from US$109.3 billion in FY2023-24 to US$116.67 billion in FY2024-25, before reaching US$122.43 billion in FY2025-26.
This consistent growth reflects strong international demand, improved manufacturing capabilities, and the success of initiatives aimed at enhancing export competitiveness and industrial productivity.
Manufacturing Reforms Strengthen Global Competitiveness
The Commerce Ministry attributes the sector’s growth to structural reforms, infrastructure development, and targeted government initiatives that have strengthened India’s manufacturing ecosystem.
Programs supporting industrial modernization, ease of doing business, logistics improvements, and export promotion have enabled Indian manufacturers to expand their presence in global markets. These efforts have also encouraged greater investment in technology, quality standards, and production capacity.
Key Highlights:
- Engineering exports reached a record US$122.43 billion in FY2025-26.
- Exports increased from approximately US$70 billion in FY2014-15.
- Engineering goods account for nearly 28% of India's merchandise exports.
- The sector is India's largest export contributor.
- FY2025-26 marks the third consecutive year of record export growth
- Exports grew from US$109.3 billion in FY24 to US$122.43 billion in FY26.
- Manufacturing reforms and infrastructure improvements supported growth.
- The sector continues to strengthen India's global manufacturing competitiveness.
