Telangana's Engineering Exports Skyrocket, Surpassing Pharma Dominance
Hyderabad: Telangana's export narrative is undergoing a dramatic transformation, shifting from its traditional reliance on pharmaceuticals and lifesciences to a new powerhouse: engineering goods manufacturing. Fresh trade data reveals that the state has emerged as a national hotspot for engineering exports, particularly in aircraft parts and defence equipment, marking a significant evolution in its economic profile.
Record-Breaking Growth in Engineering Exports
According to the National Import-Export Record for Yearly Analysis of Trade (NIRYAT) portal, maintained by the Department of Commerce, Telangana recorded the highest percentage increase in engineering exports among all Indian states between 2023-24 and 2024-25, with a staggering rise of nearly 118%. This surge has propelled the state to fourth place nationally in engineering goods exports for 2024-25, trailing only Maharashtra, Tamil Nadu, and Gujarat. Just a year earlier, Telangana held the eighth position, indicating a remarkable four-rank climb that industry analysts describe as a clear and decisive shift in the state's export dynamics.
Exponential Expansion Over Two Years
The scale of this growth is nothing short of striking. Telangana's engineering exports expanded more than fourfold in just two years, soaring from $1.83 billion (approximately Rs 17,067 crore) in 2022-23 to $7.5 billion (approximately Rs 70,366 crore) in 2024-25. This translates into a compounded annual growth rate (CAGR) of 103%, far outpacing the southern India regional average of 10% over the same period. This disparity underscores how Telangana is rapidly distancing itself from its regional peers and establishing itself as a leader in the engineering export arena.
Engineering Goods Become Central to Merchandise Exports
Engineering goods have now become a central pillar of Telangana's merchandise exports. Data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) indicates that engineering goods accounted for over 38% of the state's total merchandise exports between April 2024 and March 2025. Within this category, aircraft components and defence-related equipment have been identified as key accelerators, alongside significant contributions from industrial machinery, precision components, and electrical machinery and equipment.
Aerospace and Defence Ecosystem Fuels Momentum
Industry sources attribute this explosive momentum to Telangana's rapidly deepening aerospace and defence ecosystem, which is firmly anchored around Hyderabad. The state hosts manufacturing, engineering, and training operations of numerous global industry leaders, including Lockheed Martin, Boeing, Airbus, Safran, GE Aviation, Pratt & Whitney, Collins Aerospace, and Honeywell. This robust cluster has not only strengthened local supply chains but has also positioned the Hyderabad region as a preferred base for sourcing and producing high-value aerospace components, driving further export growth.
Gaining Ground in Southern India
NIRYAT data further highlights Telangana's rising dominance within southern India. The state's share of the region's engineering exports increased sharply from 5.83% in 2022-23 to 19.70% in 2024-25, demonstrating how quickly it is gaining ground and reshaping the export landscape of South India.
Sustained Trajectory Expected
Telangana government officials are optimistic about maintaining this upward trajectory, citing the state's cost competitiveness, export readiness, and robust infrastructure as key enablers. With engineering goods now overtaking the pharma and lifesciences sector as the top export contributor, Telangana is poised to continue its ascent as a major player in India's engineering export market, solidifying its reputation as a dynamic and diversified economic hub.
