German engineering exports to India are set to accelerate in 2026, with experts predicting growth of 10 to 15 percent driven by strengthening bilateral relationships and progress toward a Free Trade Agreement between India and the European Union. The anticipated increase builds on India’s position as Germany’s largest trading partner among EU members and reflects India’s push to upgrade its manufacturing sector.
German engineering machinery exports to India stood at Rs. 42,746 crores (approximately $4.72 billion) in 2025, establishing a substantial base for further expansion. The German Engineering Federation, VDMA India, expects this figure to grow significantly as the India-EU FTA reduces tariffs and improves market access for German manufacturers.
Germany’s advanced engineering technologies are considered crucial for India’s drive to upgrade its economy, particularly through the Viksit Bharat program aimed at increasing manufacturing’s contribution to GDP. As India works toward its goal of becoming a developed nation by 2047, German engineering expertise in critical sectors like power transmission, construction equipment, and logistics automation align particularly well with India’s infrastructure and manufacturing priorities.
