India’s engineering exports have become vital for the country’s trade relations. During FY 2024–25, engineering exports reached USD 116.67 billion and grew by 6.74% annually. Such performance, particularly during the current global economic decline, underscores the export prowess of Indian engineering.
Startups and new entrepreneurs in the steel, industrial machinery, medical, and aerospace industries will gain significantly due to the range of products and growth in demand. Therefore, it is necessary to analyze the current and future strategies that are driving growth, and the actions that will need to be undertaken by new businesses in India.
Engineering Exports Overview
India’s engineering exports grew to USD 116.67 billion during FY 2024–2025, and accounted for 26.67% of the country’s total exports. The chart alongside shows the top export destination for the country such as the USA, UAE, UK, Singapore, and Germany.
In 2024–2025, the major growth areas of engineering exports were aircraft and spacecraft parts, medical and scientific instruments, electrical machinery, and pumps, and two and three wheelers, with growth rates of 114.7%, 16.2%, 16.2%, 15.7%, and 13.1% respectively.
India is dropping the lower value, raw materials, and focusing on engineering products with a tech edge.
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Why Is It Important For Startups
India engineering strength in exports gives the new companies the opportunity to work with the new emerging engineering demands from different countries.
Niche Markets are Disconnecting
Startups growth is the emerging fields such as parts for electric vehicles, medical instruments and aerospace parts construction. Nub market access is new growth points for these niches.
Resilience is Increasing Diversified Exports
Indian engineering exports from basic metals to advanced industrial goods adds value and show the added productivity of Indian engineers. These emerging product niches with low competition will have strong growth potential.
New Growth Segments And Opportunities For Startups
1) Components of aerospace & spacecraft (+114.7%)
India exported more than double value than the previous year for aircraft and spacecraft with parts in FY 2024-25.
Why attractive: With the new India’s Make in India: Defence push and the international demand for aircraft the market is booming.
Opportunities: Maintenance tooling, precision components, avionics subsystem, and composite materials.
Startup Insight: Subcontract and tier 2 supply for primary aerospace manufacturers with integration from tier 1 aerospace system.
2) Machinery and Electrical Equipment & Electrical Apparatus (Export Growth 16.2%)
In 2021, electrical machineries and equipment exports from the world amounted to over 14.3 billion USD. Electrical machineries and equipment exports from the world amounted to over 14.3 billion USD with the USA and Germany being the top contributing countries.
Import Weaknesses: transformers and switchgear, smart meters, switchgear, and EV chargers.
What is the reason to invest? Methodologies used to understand the mechanisms for increasing electrification, adoption of renewables, and the increasing demand for EVs.
Startup Insight: Focus on R&D driven niche components for energy efficiency.
3) Instruments & Apparatus for Medicine & Science (Export Growth 16.2%)
In 2021, healthcare technology exports grew to 2.8 billion USD.
Why Attractive: Low-cost diagnostic instruments, components of imaging systems, and laboratory equipment.
What is the reason to invest? Development and rapid deployment of health promotion strategies, coupled with the growing imbalance of medical available systems and cost-efficient mechanisms, needs addressing.
Startup Insight: Focus on creation of disruptive medicne utilising India’s biotech and IT competencies.
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4) Three & Two Wheelers (Export Growth 15.7%)
Exports grew to 3.2 billion USD with surge from Africa, Asia, and Latin America regions.
Why Attractive: Scooters, EV motors, batteries, bespoke assemblies.
What caused the increase? People’s desire to increase cost-effective means of transportation, and decrease pollution caused by means of transportation.
Startup Insight: Focus on regions like Africa and the Asia Pacific, with strong exports of EV systems.
5) Industrial Machinery & Pumps, Valves (Export Growth 13.1%)
Exports of industrial machineries and pumps increased to 8.3 billion USD and 1.5 billion USD respectively.
Why Attractive: Custom design agriculture pumps, chemical, and treatment pumps.
What is the reason to invest? Improvement in basic water management infrastructure to address global climate change and maintain advancing infrastructure for water strategic initiatives.
Startup Insight: Focus on constructing integrated systems for modular machinery systems aimed at small and medium-sized enterprises abroad.
Triggers for New Ventures: Import-Export Imbalances
A Decline in Exports of Aluminium (-10.3%) & Copper (-8.1%):
Suggests potential for domestic import substitution. Startups can pursue the recycling of scrap metals as well as the production of value-added goods for international re-export.
Demand For Non-Ferrous Metals Is Increasing: Tin +41.8%, Nickel +13.8%
Startups can opportunistically focus on the engineering of specialized value-added products for enhanced alloys and metal matrix composites.
Read More: From Milk to Millions: Dairy Startups in India — Opportunities & Roadmap
Lessons From Exceptional Indian Entrepreneurs
Ratan Tata, Tata Motors & Tata Steel. He elevated Indian engineering to the world’s foremost. His “frugal engineering” model demonstrates how sustainable and profitable growth can be achieved by startups.
Anand Mahindra, Mahindra Group. He evolved the company from manufacturing tractors to one in the aerospace and EV sectors. His career shows how diversification can be attained given the right market opportunities.
Baba Kalyani, Bharat Forge. He advanced the company from small scale metal forging to a global leader in defence and auto-components. His global achievement shows the value of applying global standards to exacting precision.
These examples show how efficient scaling and proper strategy can convert Indian firms to multinationals.
Read More: Engineering Export Opportunities for Entrepreneurs
Future Outlook: India’s Export Ambitions
- 2030 Target: Export 250 billion dollars worth of engineering.
- 2047 Target: Export 1.25 trillion dollars worth engineering.
- Share of engineering exports worldwide: 1%, target 8-10%.
These growth aspirations reflect the enthusiasm of government, industry, and private sector stakeholders to foster an export-friendly environment. In addition, the future will be driven by renewable energy, electric-driven mobility, medical technologies, and precision engineering.
Proposed Business Opportunities for New Startups
- Motors, batteries, and charging systems of electric vehicles
- Affordable, precision medical devices and wearables
- Export-led agro machinery, modular pumps and tools
- Units for the circular economy to recycle copper, aluminum, and plastics
- Green engineering products, efficient solar modules, hydrogen storage, and other machinery systems
Read More: Startup Opportunities in India Engineering Exports
Final Thoughts: A Challenge to Business People’s Diversity
India’s significant engineering exports give a head start to aspiring entrepreneurs. There is countless, pumps, medical devices, and motors. The opportunities are vast and scalable.
For entrepreneurs, new businesses should:
- Identify rapidly growing markets for exports.
- Create highly innovative, well branded products.
- Work with a large number of associates and industry specialists to design a sustainable business model.
- Leverage India’s rapidly growing engineering export market.
Every ambitious new startup will achieve and contribute equally toward the goal of $250 billion by the year 2030 alongside the well established business giants.
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How NPCS Can Help You
Niir Project Consultancy Services (NPCS) eases the path for entrepreneurs by solving any and all issues of implementation through painstaking and precise market segmentation and research to distinguish between viable and non- viable business ideas.
Targeting the manufactured products as well as the core products and evaluating the focus market in terms of potential and demand as well as procuring the raw materials and machinery is all key. Thorough financial assessments with profit analysis alongside capacity and the required product lines determines the business pledge of feasibility and long term profitable viability.
FAQs
1) Which countries import engineering goods from India?
A. India’s engineering goods are in large demand from the USA, UAE, UK, Singapore and Germany.
2) What was the growth rate for different Engineering Sectors?
A. The growth rate for parts of aircraft and other associated parts was 114.7 and over.
3) What is the contribution of startups to engineering exports?
A. Startups contribute to Engineering Exports through Niche innovation and Supply Chain Agility.
4) What sectors have immediate job openings?
A. Aerospace parts, Electric Vehicles, Surgical Instruments, Industrial Pumps
5) What is India’s foreign remittance goal for the long term?
A. India is expected to achieve foreign remittance worth USD 250 billion by 2030, and is projected to reach USD 1.25 trillion by 2047.
