German machinery exports to India rise 11% as firms look beyond China
German machinery exports to India grew by 11% in the first half of 2026 as European firms seek to diversify supply chains away from China. The German Engineering Federation (VDMA) views India as a critical strategic partner for future industrial cooperation.
Why it matters
This shift underscores the broader geopolitical trend of 'de-risking' from China and the increasing importance of India in global manufacturing value chains.
India is emerging as a strategic partner for German and European mechanical and plant engineering industry, driven by rising demand, investment opportunities and efforts to diversify supply chains away from China, according to the German Engineering Federation (VDMA).
German machinery exports to India rose 11% to €2.2 billion in the first half of 2026. A VDMA business survey found that 65% of engineering firms operating in India expect order intake to increase, while 56% anticipate an improvement in their business situation.
Around 600 VDMA member companies are currently active in India, manufacturing or developing products locally and providing customer services. The country is gaining importance not just as a sales market but also as a destination for investment, innovation and production.
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