Telangana Emerges as Key Engineering Hub in India

Hyderabad:Telangana is fast evolving as a major hub for engineering goods such as aircraft parts and defence equipment, official trade data from the Union government indicates.

According to the National Import-Export Record for Yearly Analysis of Trade (NIRYAT), a portal maintained by the Central government’s department of commerce, Telangana recorded the highest percentage rise — 117.9 per cent — in engineering export performance among Indian states between 2023-24 and 2024-2025.

The performance places Telangana fourth in engineering goods exports, behind Maharashtra, Tamil Nadu and Gujarat. Industry sources indicated that the state is likely to sustain this momentum when figures for 2025-26 are released.

Traditionally known for pharmaceutical exports, Telangana is now seeing growth in engineering goods, particularly in aerospace and defence. Engineering goods accounted for 38.44 per cent of the state’s merchandise exports between April 2024 and March 2025, according to data from the directorate general of commercial intelligence and statistics under the Union ministry of commerce.

Exports of aircraft components and defence equipment have shown rapid growth in recent years. The state hosts aerospace and defence manufacturing and engineering facilities of global companies such as Lockheed Martin, Boeing, Airbus, Safran, GE Aviation, Pratt & Whitney, Collins Aerospace and Honeywell.

The concentration of these firms has strengthened supply chains and positioned Hyderabad as a sourcing and manufacturing base for high-value aerospace components. Data indicates that Telangana is outpacing southern states such as Tamil Nadu, Karnataka and Andhra Pradesh in engineering exports.

Engineering exports from Telangana increased more than fourfold over two years, from $1,827 million in 2022-23 to $7,536 million in 2024-25, recording a compounded annual growth rate of 103 per cent. This compares with a 10 per cent CAGR for total engineering exports of southern states during the same period.

The state’s export growth has been supported by activity across its three economic zones — the Core Urban Region Economy (CURE), the Peri-Urban Region Economy (PURE) and the Rural Agri Region Economy (RARE). With engineering exports expected to expand further in the PURE zone, Telangana is positioned to compete with established manufacturing states.

The growth aligns with the state’s long-term target of building a $3 trillion economy over the next two decades, with industry citing cost competitiveness, infrastructure and manufacturing capacity as key factors supporting export expansion.