German engineering exports to India are projected to accelerate in 2026, with industry estimates pointing to growth of 10–15%, driven by closer bilateral ties and progress toward a strengthened Free Trade Agreement (FTA) between India and the European Union.
According to VDMA India, the Indian arm of the German Engineering Federation, exports of engineering machinery from Germany to India reached ₹42,746 crore (approximately US$ 4.72 billion) in 2025. This figure is expected to rise further as the proposed FTA lowers tariffs and improves market access for German manufacturers.
Germany’s Role in India’s Industrial Push
Germany is already India’s largest trading partner within the European Union, and its advanced engineering expertise plays a critical role in India’s efforts to modernise and expand its manufacturing base. German technology is seen as particularly important in supporting national initiatives such as the Viksit Bharat programme, which aims to increase the contribution of manufacturing to India’s GDP.
Speaking at LogiMAT India 2026 in Mumbai, VDMA India Managing Director Rajesh Nath highlighted the relevance of German capabilities in sectors such as power transmission, construction equipment and logistics. He noted that these strengths align well with India’s goals of boosting industrial output and improving supply chain efficiency.
FTA to Unlock New Opportunities
Industry experts believe that a more streamlined regulatory environment, coupled with rising demand for infrastructure and logistics solutions, will further strengthen Germany’s position in India’s industrial market.
The India–EU FTA is also expected to open avenues for joint ventures, technology partnerships and local manufacturing initiatives, creating long-term growth opportunities for companies in both countries.
Summary
German machinery exports to India are forecast to grow by 10–15% in 2026, supported by stronger India–Germany ties and progress on the India–EU Free Trade Agreement. With exports already crossing ₹42,700 crore in 2025, Germany’s advanced engineering capabilities are set to play a key role in India’s manufacturing and infrastructure expansion, while the FTA could unlock new avenues for collaboration and local production.
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