Telangana emerges national engg goods exports hotspot, clocks fastest surge

Hyderabad: Telangana's export story is no longer being prescribed in pills and vaccines only. Once the traditional workhorse of Telangana, the pharma and lifesciences sector has been overtaken in terms of exports by engineering goods manufacturing, especially aircraft parts and defence equipment.Fresh trade data shows that the state is now rapidly emerging as a national hotspot for engineering goods manufacturing, driving one of the sharpest export surges in south India and India.According to the National Import-Export Record for Yearly Analysis of Trade (NIRYAT) portal, maintained by the department of commerce to track foreign trade, Telangana has clocked the highest percentage rise of nearly 118% in engineering exports among Indian states between 2023-24 and 2024-25.This has pushed India's youngest state to fourth place nationally in engineering goods exports in 2024-25, behind only Maharashtra, Tamil Nadu and Gujarat. A year earlier, Telangana stood eighth, marking a four-rank climb that is being described by industry watchers as a clear shift in the state's export profile.The scale of growth is striking. Telangana's engineering exports expanded more than fourfold in two years — from $1.83 billion (Rs 17,067 crore) in 2022-23 to $7.5 billion (Rs 70,366 crore) in 2024-25 — translating into a compounded annual growth rate of 103%.Over the same period, total engineering exports from southern India grew at a far slower CAGR of 10%, indicating how Telangana is now outpacing its regional peers.Engineering goods have also become a central pillar of the state's merchandise exports. Data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) shows engineering goods accounted for over 38% of Telangana's merchandise exports between April 2024 and March 2025.Within that basket, aircraft components and defence-related equipment were key accelerators, along with industrial machinery, precision components and electrical machinery and equipment.Industry sources attributed this momentum to Telangana's deepening aerospace and defence ecosystem that is anchored around Hyderabad. The state hosts manufacturing, engineering and training operations of global majors including Lockheed Martin, Boeing, Airbus, Safran, GE Aviation, Pratt & Whitney, Collins Aerospace and Honeywell.This cluster has strengthened local supply chains and positioned the region as a preferred base for sourcing and producing high-value aerospace components, they added.NIRYAT data also shows Telangana's share of southern India's engineering exports rose sharply — from 5.83% in 2022-23 to 19.70% in 2024-25 — indicating how quickly the state is gaining ground.The state is expected to maintain its trajectory thanks to its cost competitiveness, export readiness and infrastructure, Telangana govt officials pointed out.