India’s Engineering Services Exports Leap as NITI Aayog Calls for Stronger Oversight

• Engineering services exports rose to USD 13.77 billion in 2024-25, nearly eight times the 2014-15 level.

• The sector grew at a 22.8% CAGR over the decade.

• Imports remained almost flat at USD 1.73 billion.

• NITI Aayog flagged the lack of a dedicated engineering regulatory law.

• A central framework could boost safety, ethics and accountability.

India’s engineering services exports have expanded sharply over the past decade, underscoring the sector’s rising importance in the country’s professional services trade. According to a NITI Aayog report, exports in this segment climbed to USD 13.77 billion in 2024-25, compared with USD 1.77 billion in 2014-15, marking an almost eightfold increase.

The findings are part of the report titled “India’s Services Sector: Insights on Regulatory Regime in Professional Services,” which draws on Reserve Bank of India data related to invisibles. The report said engineering services exports posted a strong compound annual growth rate of 22.8% during the ten-year period.

In contrast, India’s imports of engineering services showed little movement over the same period. Imports increased only marginally, from USD 1.59 billion in 2014-15 to USD 1.73 billion in 2024-25, reflecting a modest CAGR of 0.9%. The gap between export growth and import stability points to India’s strengthening position as a supplier of engineering expertise to global markets.

The surge also comes at a time when engineering remains one of India’s largest technical education streams and a major source of professional employment. Citing the India Employment Report 2024, NITI Aayog noted that engineering made up 67.2% of all technical degrees awarded between 2015 and 2022.

However, the report cautioned that the profession’s growing economic role has not been matched by a comprehensive regulatory structure. Unlike fields such as medicine and architecture, engineering in India does not yet have a unified statutory framework governing professional standards, registration, ethics or accountability.

NITI Aayog observed that both government agencies and professional organisations have made repeated efforts to bring in legislation through a proposed Engineers Bill. But the bill has not yet been passed by Parliament, leaving the profession without a central regulatory law.

In this context, the policy think tank recommended the creation of a central statutory framework for engineers working in construction and infrastructure-related areas. Such a system, it said, could help define minimum professional standards, lay down a code of ethics and introduce accountability mechanisms.

The report emphasised that regulation would be especially relevant in sectors linked to public safety. A clearer framework could improve structural safety, enhance public trust and support the broader professionalisation of engineering services in India.

NITI Aayog also proposed that architects and engineers be recognised as allied professionals, particularly in areas where their responsibilities intersect. Referring to Singapore’s regulatory approach, the report said such recognition could allow both professions to function within their specialised domains while also handling overlapping tasks where appropriate.

At the same time, the report underlined that regulatory clarity should not dilute the distinct roles and responsibilities of each profession. Instead, a more defined system could help reduce ambiguity, improve coordination and strengthen India’s credibility in professional services.

With exports growing rapidly and the domestic talent base expanding, India’s engineering services sector appears well positioned for a larger global role. But NITI Aayog’s recommendations suggest that sustained growth may require stronger institutional safeguards, particularly in areas where engineering decisions have direct implications for public safety and infrastructure quality.