Engineering exports lead India's trade growth

India's engineering exports have recorded strong growth, increasing from nearly $70 billion in the 2014-15 fiscal year to an all-time high of $122.43 billion in 2025-26. According to Shri Vimal Anand, Joint Secretary, Department of Commerce, Government of India, the milestone reflects the growing strength, resilience, and global competitiveness of the country's manufacturing sector.

Speaking at a press conference in Goa jointly organised by the Department of Commerce, the Directorate General of Foreign Trade (DGFT) and EEPC India, Shri Vimal Anand that engineering goods have become the largest contributor to India's merchandise exports, accounting for nearly 28 per cent of the country's total exports. He emphasised that the sector has shown remarkable resilience in the face of global geopolitical tensions, supply chain challenges and evolving trade conditions.

Referring to market access initiatives, Shri Vimal Anand said that India's Free Trade Agreements (FTAs) with major trading partners, including the United Kingdom, European Union, United Arab Emirates, Australia and the EFTA nations, are opening up new opportunities for Indian exporters by lowering trade barriers and enhancing global competitiveness.

He added that government initiatives 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 played a key role in strengthening the country's export ecosystem. These efforts have helped engineering exports post three consecutive years of record growth, increasing from $109.3 billion in FY 2023-24 to $116.67 billion in FY 2024-25 and reaching an all-time high of $122.43 billion in FY 2025-26.

Shri Ashwin R. Golapkar, Deputy Director General of Foreign Trade, Regional Authority Mumbai, noted that initiatives such as the Interest Equalisation Scheme and the Emergency Credit Line Guarantee Scheme (ECLGS) have been instrumental in providing affordable export financing and improving liquidity, especially for micro, small and medium-sized enterprises (MSMEs).

Highlighting the western region's contribution, Shri Chadha said it accounted for nearly 39 per cent of India's engineering exports, with outbound shipments valued at $47.5 billion in FY 2025-26. He noted that despite global trade headwinds, including weakening demand, tighter financial conditions and currency fluctuations, Indian exporters have continued to demonstrate resilience, supported by focused government initiatives.