The growth in the engineering sector was recorded at 5.3 per cent between 2007-08 and 2008-09, measured on the basis of Index of Industrial Production (IIP), which registered an overall growth of 2.8 per cent during this period. The heavy engineering comprising heavy electrical, heavy engineering and machine tools and automotive segments and light engineering comprising low-technology products and high-technology products segments constitute the two sections of engineering in India.

As of June 19, 2009, there were 23 formally approved, 9 in-principle approved and 16 notified special economic zones (SEZs) in the engineering sector. Currently, there are 19 units in the organised sector for the manufacture of rubber machinery, primarily required for the tyre / tube industry.

The engineering exports from India increased by 12.5 per cent between 2006–07 and 2007–08. The engineering sector accounted for 21.6 per cent of the country's total exports in 2007–08. Europe, Asia and the Middle East are the leading export destinations, accounting for 26 per cent, 25 per cent and 18 per cent of the total exports, respectively.