At $122B, engineering goods become India's top export category
What's the story
India's engineering sector has become the country's largest merchandise export segment, accounting for over 25% of total goods exports. The sector's exports reached a whopping $122.43 billion in FY 2025-26, up nearly 75% from $70 billion in FY 2014-15. This growth is attributed to government support and a diverse range of products offered by Indian manufacturers.
Sector resilience
'Engineering exports show strength, resilience of India's manufacturing ecosystem'
Vimal Anand, Joint Secretary at the Department of Commerce, emphasized that the growth of India's engineering exports shows the strength and resilience of the country's manufacturing and export ecosystem. He noted that despite a complex global trade environment with geopolitical uncertainties and supply chain disruptions, Indian exporters have shown adaptability. The engineering export basket has diversified over time with products gaining traction in major global markets like North America and EU.
Policy interventions
Government's proactive approach to export promotion
Anand stressed the importance of exports in driving economic growth and job creation. He said the government has taken a proactive approach toward export promotion, engaging with industry stakeholders to understand emerging challenges. This engagement was especially useful during recent disruptions to trade routes and logistics networks due to geopolitical developments in West Asia, enabling timely identification of challenges and facilitating appropriate support measures for exporters.
Trade agreements
Government's focus on improving market access for exporters
The government has also focused on improving market access for Indian exporters through Free Trade Agreements (FTAs) with key partners such as the UK, EU, UAE, Australia, and EFTA countries. These efforts are aimed at reducing trade barriers and enhancing the competitiveness of Indian products. Several initiatives like Market Access Initiative Scheme, Brand India Engineering Campaign, and Production Linked Incentive Scheme have strengthened the export ecosystem and improved India's position in global value chains.