India’s Engineering Exports Reach Record USD 122.43 Billion in FY 2025-26

The achievement was highlighted at a press conference in Goa jointly organized by the Department of Commerce, the Directorate General of Foreign Trade (DGFT), and EEPC India.

Speaking at the event, Vimal Anand said engineering exports have become the largest contributor to India’s merchandise exports, accounting for nearly 28% of the country’s total merchandise exports. He noted that the sector has demonstrated strong resilience despite geopolitical uncertainties, supply chain disruptions, and evolving global trade dynamics. According to Anand, Indian engineering products now enjoy a strong presence across major global markets, including North America, the European Union, and other advanced economies, reflecting the quality and reliability of Indian manufacturing. He emphasized that exports continue to play a crucial role in economic growth, employment generation, and India’s integration into global value chains. Highlighting government support, Anand said sustained engagement with industry stakeholders has enabled timely policy interventions and effective responses to challenges, including recent disruptions in trade routes and logistics networks linked to geopolitical developments in West Asia. He also pointed to India’s free trade agreements with partners such as the United Kingdom, European Union, United Arab Emirates, Australia, and EFTA countries, which are expected to create new opportunities for exporters by reducing trade barriers and improving competitiveness.      Government initiatives including 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 further strengthened the export ecosystem. As a result, engineering exports have recorded three consecutive years of growth, increasing from USD 109.3 billion in FY 2023-24 to USD 116.67 billion in FY 2024-25 and reaching USD 122.43 billion in FY 2025-26.

Ashwin R. Golapkar highlighted key policy measures supporting export growth, including the Export Promotion Mission with an outlay of ₹25,060 crore for 2025-31. He said the initiative aims to provide a unified digital framework for export promotion and support. Golapkar also emphasized reforms under the Foreign Trade Policy designed to create a district-driven, digital, and MSME-friendly export ecosystem. He noted that the DGFT Trade Connect Platform serves as a single-window interface linking exporters with DGFT, Export Promotion Councils, Indian Missions abroad, and EXIM Bank, while helping businesses better utilize free trade agreements and market intelligence. Additionally, schemes such as the Interest Equalisation Scheme and the Emergency Credit Line Guarantee Scheme (ECLGS) have helped ensure affordable export finance and liquidity support, particularly for MSMEs.

Pankaj Chadha said India remains one of the world’s fastest-growing major economies, supported by strong macroeconomic fundamentals and a resilient domestic market. He described the engineering sector as one of the country’s most dynamic industrial segments and a key driver of export growth. Chadha noted that western India contributed nearly 39% of the country’s engineering exports, with shipments valued at USD 47.5 billion during FY 2025-26. Despite global challenges such as slowing demand, financial tightening, and currency volatility, Indian exporters have continued to perform strongly with the support of targeted government measures. Adhip Mitra welcomed the government’s continued support for the sector and highlighted upcoming initiatives, including the Bharat Trade Net digital trade platform, expanded credit guarantee coverage for exporting MSMEs, and customs duty rationalisation measures aimed at further enhancing India’s export competitiveness.