India’s system of industrialization and exportation is undergoing transformation. The goal has been set at USD 1.25 trillion of engineering exports to be achieved by the year 2047. It will coincide with the marker of 100 years of Independence.
This presents both an opportunity and a challenge for entrepreneurs in the country. Currently the relative importance of the engineering sector to total merchandise export is 26 %. Thus, there is an opportunity to exploit emerging technologies, policy tailwinds, and appetite from across the world.
India’s Engineering Export Journey
During the year 2024-2025, the country’s engineering goods exports were USD 116.67 billion. It is an increase of 6.74 % over the previous year. The country’s exports comprise of leading electrical machinery, motor vehicles, auto components, medical instruments and even aircraft parts.
The country enjoys principal export markets in the US, UAE, UK, Singapore and Germany. Such emerging trends enable expansion of the country’s startup ecosystem to the international markets.
Vision 2047: $1.25 Trillion Export Target
India has a target of 2047 to increase its share of global engineering exports from 1% to 8-10%. In order to accomplish this goal, the country will focus on next generation manufacturing with a digital, innovative and green focus.
There is an opportunity for frontier firms, should they embrace these trends and produce value added goods.
Key Sectors and Opportunities for Startups
Aerospace and Defense
In FY FY2024-25, aircraft and spacecraft exports are expected to increase at a rate of 114.7%. The defense sector, therefore, has a quite reasonable target for avionics drones, UAVs, and propulsion systems.
World demand is also growing for advanced parts of drones, other propulsion devices, and drone sensors. New defense prop and OEM contract still brings a lot of collaboration government defense cluster and new OEM companies.
In addition to these, programs like ‘Make in India’ provides financial assistance to peripheral finishing skill training and development of technologies to enhance skills.
Evs And Components
There is a growing need for improved systems of wireless controlled smart EVs and charging systems, advanced electronic drivetrains, and EVs. Foreign markets are also expanding for EV telematics systems and advanced battery management systems.
Semi-truck vehicles exports is around USD 9 billion and still leads the export market due to the rapid increase in two and three wheelers.
Therefore, rapid scale is also achievable by several companies with the investment on EV OEMs and other supporting startups. In addition, government policies concerning the region on EVs and components improves capital profit and also subsidize the burden.
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Renewable Energy Equipment
The global interest in electrical machinery is still shifting in a serpentine manner, approaching USD 14.3 billion thresholds. New companies may produce solar PV modules, wind turbines, hydrogen storage systems, and smart meters.
Also, they may diversify into energy conserving inverters, battery storage systems, and microgrids. Tailored monitoring and management services can incorporate integrated green fabricating and monitoring digital solutions.
Moreover, policies on renewable energy and concessionary rates on export taxes lower the almost nonexistent market entry barriers and enhance margins.
Medical Devices and Scientific Instruments
Medical devices and scientific instruments exports reached USD 2.8 billion, which is a 16.2% increase. Startups can thus produce low-cost diagnostic instruments, diagnostic wearables, and laboratory biotech devices.
Furthermore, global markets strongly demand systems for telemedicine, portable imaging, and remote health monitoring. Startups can easily enter international markets after obtaining FDA, CE, and ISO certifications.
Furthermore, other government policies offer subsidized and protective investments for R&D and technology to MSMEs in the medical manufacturing industry.
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Agro Machinery and Pumps
The overseas demand for industrial machines has been satisfied and exports amounted to over 8.3 billion USD. Exporting modular agricultral pumps and seed and food processing units in addition to irrigation pumps, and food processing units is feasible.
In addition, solar pumps and small solar powered processing plants for precision farming, small-scale domestic and international markets and agricultural machinery for precision farming are feasible.
Integration with agile startups and farmer producer organizations ensures sustained availability and long term agreements for the raw materials. Further, export incentives and subsidies at home enhance the profitability.
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Metal and Metal Recycling
The increasing demand for eco-friendly approaches to smelting and recycling of electronic waste combined with the exports of tin and nickel and the developing global market for the recycling of specialty alloys.
Along with it, High-grade alloys and tin, nickel and lead processing exports and their price growth of 41.8%, 13.8%, and 21.2% respectively justify the intention of start-ups to engage in the processing of specialty metals, tin recycling, and the supply of high-grade alloys.
Because of the government’s designed policies on the management of exported industrial metals and waste, the cost of setting-up tin recycling and the processing of specialty metals and alloys has considerably declined, thereby improving the profit margins for start-ups.
From the investment of sustainable metals and recycling, the profit can easily be earned back from Europe, North America, and East Asia. They provide ample opportunities for profit and Return on Investment.
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Insights on Imports and Exports for Startups
Amongst other things, a startup needs to keep track of ‘demand’ on a global scale. Imports of aluminium and copper both fell by a fraction of a percent as exports were diminished by ‘-10.3%’ and ‘-8.1%’ respectively.
We also see a burgeoning market in parts for aerospace, EVs, and medical devices. Startups must concentrate on these emerging trends to keep profitable and mitigate risks.
Insights from most renowned Business Leaders in India
- With unparalleled efficiency and innovation, Ratan Tata was able to make Tata Motors and Tata Steel global leaders in their respective domains.
- Remarkably, Anand Mahindra was able to diversify Mahindra Group by incorporating EVs, aerospace, and tractors, thus proving versatility.
- Through unmatched precision and quality, Baba Kalyani was able to scale Bharat Forge to a global auto and defence supplier.
Startups ought to learn from these models by diversifying, adopting new and innovative strategies, and global best practices.
Determining Export 2047 Goals and Strategies
- High growth areas include electric vehicles, aerospace, and renewable energy.
- Products and services must be globally certified (ISO, CE, and FDA) and ready for export.
- FTAs must be utilized for streamlined market access.
- Investment must be made towards green and sustainable solutions.
- NPCS and other industry stakeholders must be actively engaged for feasibility assessments and planning.
- Pursue joint ventures and other international collaborative initiatives.
- R&D activities must be prioritized to maintain sustained competitiveness.
Read More: Top 25 Global Destinations for Indian Engineering Exports
How NPCS Can Help Entrepreneurs
Niir Project Consultancy Services (NPCS) assists startups in strategizing, planning, and implementing export-focused endeavor projects.
We prepare and analyze for the industry Market Survey cum Detailed Techno Economic Feasibility Reports (DPR) for the planning and execution of manufactury systems, encompassing market analytics, capacity outlining, machinery specifications, raw materials, finance projection, and profit schemes.
Startups who work with NPCS are able to select the proper sector with government support, and construct robust, globally competitive firms.
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Conclusion
India is aiming for 1.25 trillion USD in engineering exports for 2047. This is a big goal, and possible. Growth is achievable with the integration of the first movers, application of green technologies, and focusing on the upgraded areas of work.
New businesses can learn from industry leaders and utilize NPCS expertise to help India with engineering on a major international level.
FAQs
Q1. What is the target for engineering exports for India set for the year 2047?
By the year 2047 India wishes to achieve USD 1.25 trillion in engineering exports.
Q2. What are the most promising sectors for new venture creation?
Aerospace, electric vehicles, renewable energy, medical devices, agro-machinery, and some specialty metals.
Q3. What steps should startups take to satisfy global export requirements?
Startups can satisfy global export requirements by acquiring ISO, CE, and FDA certifications, and most importantly, adhering to the required quality standards set by the global community.
Q4. What is the role of NPCS concerning new business owners?
NPCS aids in startup planning and expansion by providing feasibility studies, DPRs, and comprehensive market analysis.
Q5. What are the most significant markets for engineering exports from India?
The most significant markets for engineering exports from India’s are the USA, UAE, UK, Singapore, and Germany.
