Telangana Engineering Exports Soar: Aerospace & Defense Lead

Telangana is rapidly emerging as a national hotspot for engineering goods manufacturing, surpassing the traditional dominance of the pharma and lifesciences sector. According to the National Import-Export Record for Yearly Analysis of Trade (NIRYAT) portal, the state achieved the highest percentage rise in engineering exports among Indian states, with an increase of nearly 118% between 2023-24 and 2024-25.

This growth has elevated Telangana to the fourth position nationally in engineering goods exports for 2024-25, climbing from eighth place the previous year, and now trails only Maharashtra, Tamil Nadu, and Gujarat. Telangana’s engineering exports have grown more than fourfold in just two years, from $1.83 billion (Rs 17,067 crore) in 2022-23 to $7.5 billion (Rs 70,366 crore) in 2024-25, reflecting a compounded annual growth rate of 103%. This outpaces the 10% CAGR observed for total engineering exports from southern India during the same period.

Engineering goods now account for over 38% of Telangana’s merchandise exports. Key accelerators within this sector include aircraft components, defence-related equipment, industrial machinery, precision components, and electrical machinery and equipment. Industry sources attribute this momentum to Telangana’s robust aerospace and defence ecosystem, centered around Hyderabad, which hosts manufacturing and engineering operations for global majors such as Lockheed Martin, Boeing, and Airbus.

This cluster has fostered strong local supply chains and established the region as a preferred base for high-value aerospace component production. Telangana’s share of southern India’s engineering exports has also risen sharply, from 5.83% in 2022-23 to 19.70% in 2024-25, indicating its rapid ascent. State government officials anticipate this trajectory to continue, supported by the state’s cost competitiveness, export readiness, and infrastructure.