India’s engineering goods exports recorded double-digit growth in July 2025, with Germany emerging as one of the top markets. According to data from the Engineering Export Promotion Council (EEPC), shipments to Germany increased by 37.8% year-on-year, reaching $457.6 million, underlining Germany’s role as a key partner in India’s export basket.
Germany’s Role in India’s Export Growth
Engineering exports have become the backbone of India’s trade with Germany, led by sectors such as machinery, electrical equipment, auto components, and chemicals. Germany is India’s largest trading partner in Europe and one of the top 10 trading partners worldwide. In FY24, India’s bilateral trade with Germany stood at $26.10 billion, of which exports were $9.83 billion and imports $16.27 billion.
Germany is also the ninth-largest foreign investor in India, with cumulative FDI inflows of nearly $14.9 billion between April 2000 and September 2024. Over 213 Indian companies currently operate in Germany, engaged in manufacturing, trading, R&D, and services, reflecting deep industrial linkages.
Strong Momentum Despite Global Headwinds
India’s overall engineering exports in July 2025 crossed the $10 billion mark for the first time this fiscal, touching $10.43 billion, compared to $9.16 billion in July 2024 — a growth of 13.81% year-on-year.
The growth comes despite headwinds in global trade caused by tariff hikes in the US, regional uncertainties, and policy divergence. Other key markets also reported strong gains:
- The US rose 19% to $1.81 billion.
- The UK surged 46.5% to $402.5 million.
- Japan expanded 55.2% to $256.6 million.
- Brazil grew 26.4%.
Against this backdrop, Germany’s nearly 38% rise is significant, particularly as Berlin continues to look for reliable partners in diversifying supply chains away from traditional markets like China.
India’s Engineering Export Profile
Engineering goods form a quarter of India’s total exports, with shipments valued at $109.22 billion in FY24, up from $106.93 billion in FY23. In FY25 (April–December), exports already stood at $84.45 billion.
Breakdown of engineering exports in FY25 (April–December):
- Industrial machinery: $14.72 billion (17.4% share).
- Electrical machinery: $10.59 billion (12.5%).
- Auto and auto parts: 17.95%.
- Primary iron, steel, and products: 17.07%.
- Non-ferrous metals and products: 10.5% (with aluminium dominating).
- Miscellaneous, including aircraft, ships, boats: 24.5%.
The Export Promotion Capital Goods (EPCG) scheme under India’s Foreign Trade Policy has played a central role in boosting capital goods exports, which account for about half of the total engineering shipments.
Indo-German Trade Outlook
Germany has consistently ranked as India’s third-largest export partner in Europe and the leading European source of imports. India’s major engineering exports to Germany in FY24 included:
- Nuclear reactors, boilers, and machinery ($1.5 billion).
- Electrical machinery and equipment ($1.2 billion).
- Organic chemicals ($821 million).
- Vehicles and parts ($624 million).
- Iron and steel articles ($450 million).
In FY25 (April–October), nuclear reactors, electrical machinery, chemicals, and pharmaceuticals continued to dominate.
With India-Germany bilateral trade steadily expanding, the surge in July’s engineering exports is being seen as another sign of deepening economic engagement between the two countries, complementing broader collaborations in clean energy, technology, and industrial modernization.
