German machinery exports to India are expected to grow by 10-15 per cent in 2026, especially after the implementation of the India-EU free trade agreement, industry body VDMA said on Friday.
Shipments of German machinery to India stood at approximately 4 billion euros in 2025.
"We project these exports to grow by 10-15 per cent in 2026," said Rajesh Nath, Managing Director, German Engineering Federation-VDMA India.
3 February 2026
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Nath was speaking at LogiMAT India 2026- a global exhibition of the logistics industry , which is being held in Mumbai.
The mechanical engineering industry association (VDMA e.V.) is an association of 3,600 German and European mechanical and plant engineering companies.
The three-day LogiMAT India 2026 has brought together national and international companies from 10 nations to fuel India's logistics and infrastructure sector growth.
The India-Germany partnership at the German Pavilion is driving investment in the logistics sector, with participation from international associations, including the Indian Chamber of International Business, Warehousing Association of India, Indo-French Chamber of Commerce, Indo-American Chamber of Commerce, VDMA, and the All India Warehousing Welfare Association.
Nath stated that German technology imports are critical to India's manufacturing transformation.
Viksit Bharat targets India's evolution into a developed economy by 2047, which requires scaling manufacturing's GDP contribution from the current 16-17 per cent to 25 per cent. This demands year-on-year sectoral growth of 10-12 per cent, Nath said, adding that German and European advanced manufacturing technologies will be instrumental in building India's industrial capacity.
The EU-India FTA's strategic value lies in enabling European manufacturers to establish production bases in India and leverage it as an export hub for global markets. This positions India as a key node in international supply chains, he added.
Gaurav Sood, CEO and Managing Director, Messe Stuttgart India, said, "The German Pavilion, alongside participation of international associations, including VDMA, serves as a catalyst for investment, technology transfer, and collaborative growth in the logistics and manufacturing sectors." Germany has emerged as India's largest trading partner in the European Union, with bilateral trade reaching nearly USD 30 billion in fiscal year 2024-25.
Indian exports stood at USD 10.5 billion, while imports, particularly in machinery, electrical equipment and precision instruments, totalled USD 19 billion.
Beyond trade, Germany ranks among India's top-10 global trading partners and is ninth for foreign direct investment, having channelled over USD 15 billion into the Indian economy since 2000.
The primary sectors of German machinery importers in India include power transmission, construction equipment, plastic processing machinery, material handling logistics, and food processing and packaging.
India and the EU concluded negotiations on a free trade agreement (FTA) last month. The deal, which is expected to be implemented this year, would unlock fresh opportunities for commerce between India and Europe.
