German machinery exports to India have increased by 11%, highlighting the growing importance of the Indian market as German manufacturers seek to diversify their international business beyond China.
The growth reflects expanding commercial opportunities in India, where demand for advanced machinery and industrial equipment is supported by manufacturing expansion, infrastructure development and investment in production technologies. German companies are increasingly looking at India as a market for engineering products, automation systems and specialised industrial equipment.
Germany is a major global supplier of machinery and industrial technology, with expertise spanning manufacturing equipment, machine tools, electrical systems and factory automation. Its manufacturers see opportunities in India’s efforts to strengthen domestic production capacity and modernise industrial operations.
According to the German Engineering Federation (VDMA), machinery exports to India rose 11% to €2.2 billion in the first half of 2026. A VDMA survey found that 65% of engineering companies operating in India expected order intake to increase, while 56% anticipated an improvement in their business conditions.
The growing interest in India reflects efforts by German companies to diversify supply chains and reduce dependence on China. India is increasingly viewed not only as a sales destination but also as a base for investment, manufacturing and technological collaboration.
The proposed India–European Union free trade agreement could further strengthen industrial ties by improving market access and reducing tariffs on selected machinery and engineering products. Greater cooperation could create opportunities for technology transfer, local production and investment in India’s manufacturing sector.
As German manufacturers expand their engagement with India, sustained demand from industrial and infrastructure projects is expected to remain important for future trade growth.