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Introduction: From Importer to Exporter—A Paradigm Shift
India, the world’s fastest-growing major economy, is on track to become the third-largest economy within the next five years, a testament to its expanding global stature. However, economic growth alone is insufficient for a nation with soaring ambitions; it must also develop a robust defense-industrial complex capable of meeting domestic needs while emerging as a global supplier of advanced weapon systems.
India’s defence industry is in the midst of a historic transformation. Once known as the world’s second-largest arms importer between 2015 and 2019, India has now emerged as a burgeoning force in the global arms export market.
For decades, India was heavily reliant on imports to meet its defense needs, with a focus on procuring advanced technologies from countries like Russia, Israel, and the U.S. However, recognizing the strategic and economic importance of reducing dependency on foreign suppliers, the Indian government has implemented several initiatives to boost domestic manufacturing capabilities and promote defense exports.
According to the Economic Survey 2023–24, the nation recorded its highest-ever defence exports of $2.5 billion in FY24, a 25 percent increase over the previous year. This marks a staggering 12-fold growth since FY17, driven by a blend of proactive policy reforms, technological innovation, and public-private collaboration.
This transition signals a pivotal shift in India’s strategic posture—from relying on foreign suppliers to asserting its place as a credible and competitive exporter of advanced military systems. As global security dynamics evolve, India’s self-reliant defence industry is not just keeping pace but increasingly setting the terms.
With the government’s push for indigenous defense manufacturing, the “Make in India” initiative, and ambitious export targets, India’s defense industry is positioning itself as a formidable player on the international stage. This blog explores the current landscape of India’s defense exports, key initiatives driving growth, and the future potential of the sector.
A Decade of Growth: Scaling New Heights in Production and Exports
India has made remarkable strides in this direction. India’s defense exports have seen a steady rise. From FY 2016-17 to FY 2021-22, India’s defense exports grew almost six-fold, reaching around USD 1.63 billion. In 2024 defense exports grew by an impressive 32.5%, reaching ₹21,000 crore, up from ₹15,920 crore in 2022-23. This surge reflects India’s determination to achieve self-reliance in defense manufacturing and its ambition to be a global player.
A substantial reduction in India’s foreign defense expenditure has been achieved, with a 46% drop in 2022 compared to 2018-19, as reported by the defense ministry. In 2022-23, India’s defense production surpassed ₹1 lakh crore for the first time, signaling a growing domestic capacity.
India’s inclusion in the Stockholm International Peace Research Institute (SIPRI) list of the world’s top 25 arms exporters in 2022 was celebrated as a significant milestone, with a 119% increase in exports between 2012-2016 and 2017-2021. Today, Indian defence systems are being exported to over 100 countries, with key markets including the United States, France, Armenia, and several ASEAN member states. These achievements reflect more than just commercial success—they underscore a maturing defence ecosystem aligned with geopolitical ambitions.
The rise in defence exports has been accompanied by an equally impressive expansion in domestic production. In FY24, India’s defence production touched an unprecedented ₹1.27 lakh crore, representing a 16.7 percent increase over the previous fiscal and a 174 percent rise since 2014–15. The growth is not just numerical but strategic—reflecting a calibrated national effort to develop an indigenous defence industrial base capable of serving both domestic and global demands.
Key to this transformation has been the focus on creating a robust indigenous defense manufacturing ecosystem and encouraging private sector participation. The synergy between the private and public sectors has been pivotal, with private companies contributing 60% of exports, while public sector enterprises accounted for the remaining 40% in 2023-24.
The government has set an ambitious target of achieving USD 5 billion in defense exports by 2025. India’s defense industry is on the verge of a significant transformation, with defense exports set to more than double in the next two years. Union Minister Anurag Thakur announced that India’s defense exports will jump from Rs 16,000 crore to Rs 40,000 crore by 2025. This ambitious target is part of the government’s broader strategy to bolster domestic defense production, enhance export capabilities, and reduce dependence on foreign imports. According to Thakur, India’s current defense production stands at an impressive Rs 1 trillion, with exports amounting to Rs 16,000 crore. While this marks a substantial improvement over the past decade—where defense exports were a mere Rs 1,000 crore—there is still much ground to cover to achieve the government’s aggressive target of Rs 50,000 crore in defense exports by 2028-29.
Operation Sindoor: A Catalyst for India’s Defense Export Momentum
Operation Sindoor, India’s decisive 2025 military response to cross-border terrorism, has unexpectedly become a powerful catalyst for the nation’s defense export momentum. Conducted with precision and effectiveness, the operation showcased India’s ability to carry out cross-border strikes using indigenous platforms and advanced surveillance capabilities. The operation demonstrated the combat effectiveness of indigenous platforms such as the BrahMos supersonic cruise missile, Akash air defense systems, and SkyStriker loitering munitions. These real-world deployments served as high-visibility endorsements of Indian-made systems, dispelling doubts among international buyers and enhancing credibility in key markets including Armenia, the Philippines, and Southeast Asia. As a result, India’s defense exports saw a 53% year-over-year growth in 2024–25, reflecting increased confidence in its military technology.
This assertive action served as a powerful advertisement for Indian defense capabilities. By proving the combat-readiness and reliability of indigenous platforms under real operational conditions, the operation boosted international confidence in Indian-made systems. Countries seeking proven, cost-effective alternatives to traditional Western suppliers have taken note, positioning India as a credible and capable defense exporter. As such, Operation Sindoor has indirectly fueled interest in India’s defense products, acting as a catalyst for strengthening its defense industrial base and expanding its footprint in global arms markets
The post-operation landscape also witnessed accelerated defense policy reforms and deeper integration of the private sector under the Make in India initiative. Leading firms such as Tata Advanced Systems and Paras Defence rapidly scaled production of drones, electronic warfare systems, and modular solutions. This momentum contributed to a 34-fold increase in defense exports since 2013–14. Additionally, the government sanctioned an emergency procurement of ₹40,000 crore to bolster domestic capabilities, creating new opportunities for indigenous manufacturers. By aligning operational success with economic ambition, Operation Sindoor has solidified India’s position as a reliable supplier of proven, battle-tested defense systems—setting the stage to achieve its $6 billion export target by 2029.
Strategic Enablers: Policies, Reforms, and Innovation
A major catalyst behind this growth has been the government’s long-term vision and policy consistency.
The Indian government has launched a series of initiatives to spur indigenous manufacturing and defense exports. The “Make in India” campaign, introduced in 2014, aims to turn India into a global manufacturing hub across various sectors, with defense production being a top priority. The initiative has encouraged foreign direct investment (FDI), facilitated technology transfers, and fostered joint ventures between Indian and foreign firms, laying the groundwork for export-ready defense platforms. Over the years, this drive has significantly reduced India’s import dependency, from approximately 70 percent to around 36 percent.
The Defence Production and Export Promotion Policy (DPEPP) 2020 is another cornerstone of India’s export strategy. It envisions India as one of the world’s top 25 defense exporters and focuses on reducing import dependence, increasing private sector participation, and incentivizing production geared toward export markets. Additionally, the Innovations for Defence Excellence (iDEX) program supports startups and small businesses with funding and mentorship to develop high-potential defense technologies.
The Defence Acquisition Procedure (DAP) 2020 further institutionalized these efforts, promoting indigenous design and development while opening the door for private sector involvement. It emphasizes indigenous sourcing and includes provisions to facilitate the export of surplus military equipment, encouraging firms to design platforms with export viability. Complementing these reforms is the extension of Lines of Credit to countries such as Vietnam, Bangladesh, and Myanmar, enabling them to procure Indian-made defense products with favorable financing terms.
Simplified export procedures, such as the implementation of the Open General Export License (OGEL), have made it easier for Indian firms to access global markets. In FY24–25, this framework facilitated the export of over 1,700 items, registering a 17 percent increase from the previous year.
The government has also raised the FDI cap in the defense sector from 49% to 74% through the automatic route. This liberalization has attracted foreign capital and expertise while simplifying export licensing procedures, making it easier for partner countries to procure Indian defense equipment without bureaucratic delays.
Financial commitment has also played a pivotal role. The Union Budget for FY25–26 allocated ₹6.81 lakh crore to the defence sector, with a notable 25 percent reserved specifically for research and development. This investment aims to catalyze innovation and modernize the domestic industrial base.
Technological Innovation and Flagship Systems
India’s export portfolio now includes a growing list of advanced platforms and technologies. The BrahMos supersonic cruise missile, jointly developed with Russia, has found buyers in Southeast Asia, including the Philippines and Indonesia. The Akash surface-to-air missile system, the Tejas Light Combat Aircraft, and the Dornier-228 surveillance aircraft have also captured international interest.
The defence innovation landscape has been further enriched by programs such as Innovations for Defence Excellence (iDEX). This initiative has supported over 500 startups working on frontier technologies, including artificial intelligence, quantum computing, and drone-based warfare. These startups are not only contributing to the development of cutting-edge solutions but are also playing an increasingly visible role in export growth.
Geopolitical Alignment: Strategic Exports and Regional Influence
India’s defence exports are increasingly aligned with its strategic and diplomatic objectives. The sale of Pinaka multi-barrel rocket launchers and Akash missile systems to Armenia reflects a new assertiveness in India’s foreign policy, particularly in regions where it seeks to balance Chinese or Turkish influence.
In Southeast Asia, the export of BrahMos missiles is a cornerstone of the Act East Policy, aimed at strengthening military ties and regional deterrence capabilities. Meanwhile, Africa has emerged as a new frontier for defence engagement. The establishment of a Tata Advanced Systems facility in Morocco marks India’s first overseas defence manufacturing investment, bolstering partnerships through both exports and joint production.
India’s strategic outreach also extends to the Middle East, where collaboration with Israel has yielded joint ventures like the Barak-8 missile system. These partnerships not only enhance India’s technological capabilities but also reinforce its role as a security provider in volatile regions.
Global Partnerships and Market Penetration
India’s expanding defence exports are not limited to a single region. Buyers from Southeast Asia, the Middle East, and Africa are increasingly looking at India as a cost-effective and reliable supplier. Countries such as the Philippines, Armenia, and Mauritius have already entered into agreements to procure Indian defence products. Strategic partnerships and government-to-government deals are further strengthening India’s foothold in the global arms market
India supplies weapons and equipment to a diverse basket of countries, including Italy, the Maldives, Russia, Sri Lanka, the UAE, the Philippines, Saudi Arabia, Poland, Egypt, Israel, Spain and Chile. The US, UK and France are buying defence electronics from India, while Mauritius, Seychelles and the Maldives have procured fast interceptor boats. Defence ministry data shows India supplies bulletproof jackets to 34 countries, including Australia, Japan, Israel and Brazil. About 10 countries, including the UAE, Egypt, Indonesia and Thailand purchase ammunition from India.
The world’s interest in advanced Indian weapon systems is growing as well. India has already exported notable defense products like Dornier-228 aircraft, 155 mm Advanced Towed Artillery Guns, BrahMos Missiles, and the Akash Missile System.
Strengthening Defense Diplomacy Through Exports
India’s defense export strategy is closely tied to its foreign policy and defense diplomacy. Strengthening military ties with strategically important countries such as Indonesia, Vietnam, and Afghanistan not only supports regional stability but also opens up commercial opportunities for defense exports. Exporting defense equipment helps build local operational capacities and fosters interoperability with Indian forces, especially during joint missions and UN peacekeeping operations.
To enhance the transparency and efficiency of defense deals, the Indian Ministry of Defence has proposed a Foreign Military Assistance scheme modeled after the U.S. Foreign Military Sales (FMS) program. This initiative seeks to streamline the export process for partner countries and maximize the strategic utility of India’s Lines of Credit.
The Role of Domestic Production
The rise in exports is closely tied to a simultaneous increase in domestic defence production. Annual defense production, which stood at Rs 40,000 crore in 2014, has now surpassed Rs 1.10 trillion and is projected to rise to Rs 3 trillion by 2028-29.
India’s annual defence manufacturing output reached a new milestone in FY24, climbing to almost Rs 1.27 trillion—a 16.7 percent increase over the Rs 1.09 trillion recorded in FY23. This growth in production has not only enhanced India’s defence readiness but also contributed to the country’s export potential by creating surplus capacities and high-quality systems suitable for global markets.
Public and Private Sector Synergy: Fueling the Export Engine
The transformation of India’s defence landscape is a story of collaboration. The private sector has emerged as a formidable contributor, responsible for exports worth ₹15,233 crore in FY24–25. Companies such as Tata Advanced Systems, L&T, and startups like ideaForge have demonstrated that Indian firms can meet international standards and compete in the global marketplace.
At the same time, Defence Public Sector Undertakings (DPSUs) like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) continue to play a vital role. In FY24, DPSUs posted export revenues of ₹8,389 crore, a jump of over 42 percent. HAL’s Light Combat Helicopters and BEL’s radar and communication systems remain in high demand across multiple continents.
Challenges and the Path Ahead
While India’s progress in defense exports is commendable, several challenges must be addressed to sustain momentum. A large share of current exports still comprises sub-systems and components, rather than fully integrated platforms. Quality issues, such as those encountered with the Dhruv Advanced Light Helicopter in Ecuador, underscore the need for stricter quality control and after-sales support. Additionally, global competition is fierce, and countries like China continue to undercut prices while aggressively marketing their defense equipment.
However, India’s share in global arms exports remains relatively small. Historically, India constituted less than 1% of the total global arms exports. By comparison, countries like China, Brazil, Turkey, and South Korea have established themselves as significant players in the global arms market. For example, between 2011 and 2015, China’s arms exports grew by 88%, with the majority of sales going to Asia and Oceania, signaling the growing global competitiveness of Chinese arms manufacturing.
Overcoming Structural and Perceptual Barriers
Despite these gains, India’s defence export ambitions face several challenges. A key concern remains the global perception of quality and reliability, especially when compared to Western systems. While India is competitive on cost, overcoming skepticism around performance and durability will require consistent delivery and after-sales support.
Supply chain dependencies also remain an issue. Many indigenous platforms still rely on imported components such as jet engines and advanced electronics, limiting the scope of full self-reliance. Strengthening local manufacturing ecosystems and investing in critical technologies are essential to address this vulnerability.
Moreover, India’s defence industry needs a more robust focus on research and development (R&D) to ensure that it can keep pace with global competitors. The reliance on domestic demand alone is not enough to sustain the sector’s growth, and there is a need to promote investment in both production and R&D, with a long-term focus on innovation and self-reliance.
Another challenge is the need for greater synergy between public and private sector companies. While public sector units like HAL, BEL, and DRDO are leading the charge, the private sector’s role in defense exports needs to expand significantly. Bureaucratic delays, procurement policies, and export clearances also need to be streamlined to accelerate growth.
However, the opportunities are immense. As global demand for cost-effective, technologically advanced defense equipment rises, India has a unique opportunity to fill this niche. The focus on indigenous manufacturing, combined with favorable government policies and growing private sector participation, positions India well for future growth in defense exports.
Vision 2029: A Blueprint for Growth
India has set an ambitious target of achieving defence exports worth ₹50,000 crore ($6 billion) by 2029. To reach this milestone, the government is prioritizing sectors with high potential such as naval systems, unmanned aerial vehicles (UAVs), cybersecurity tools, and space-based surveillance platforms.
As India continues its journey towards becoming a global defense exporter, challenges such as increased competition from established arms-exporting nations, bureaucratic hurdles, and the need for further technological advancements must be addressed. However, with the strong policy push and a thriving domestic defense manufacturing sector, India is well-positioned to meet its ambitious export targets and strengthen its presence in the global arms market.
Looking ahead, India’s defense export strategy should focus on continued innovation, developing high-tech solutions, and forging deeper partnerships with countries across the globe. With ambitious export targets and a strong policy framework in place, India is well on its way to becoming a global defense exporter.
The establishment of dedicated Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu is another step in this direction. These corridors aim to attract nearly ₹24,000 crore in investments, offering world-class infrastructure to both domestic and international firms. The goal is not just higher output, but the creation of globally competitive hubs for advanced defence manufacturing.
Conclusion: A New Chapter in Strategic Autonomy
India’s defense export trajectory reflects the country’s growing capability and ambition in the defense sector. India’s transition from a defense importer to an emerging exporter is a testament to the country’s growing capabilities in indigenous defense manufacturing. With substantial government support, strategic investments, and a focus on self-reliance, India is not only poised to meet its immediate defense needs but also to become a significant player in the global defense export market.
However, to truly compete with countries like China, India will need to overcome longstanding challenges in production, pricing, and bureaucratic inefficiencies. Successful implementation of the proposed defence export strategies could significantly enhance India’s role as a global defence exporter, while also strengthening its diplomatic relationships and regional security partnerships.
India’s rise as a defence exporter marks a fundamental shift in its strategic identity. This evolution is not merely economic—it signals a confident and self-assured nation capable of shaping global security discourse. By marrying indigenous innovation with global collaboration, and by fostering a competitive industrial base, India is laying the foundation for long-term strategic autonomy.
With strategic initiatives, innovative products, and a focus on international partnerships, India is set to become a significant player in the global defense market. The future holds immense promise for India’s defense export sector, as it aims to secure a stronger position on the global stage. As India looks ahead, its defense exports will be a key component in achieving both economic growth and enhanced geopolitical influence
Defence Minister Rajnath Singh aptly summarized this sentiment by invoking the spirit of Atmanirbhar Bharat, positioning India not just as a consumer of global technologies but as a producer and exporter of them. As India inches closer to becoming a $5 trillion economy, the defence sector is poised to play a pivotal role in asserting its global influence and ensuring national security through self-reliance.
