India has just become a huge buyer from one of the biggest arms and ammunition importers in the world. Once known as one of the world’s biggest arms importers, India is now emerging as a formidable global arms supplier. The latest figures reveal that in the financial year 2024-25, India’s defence exports skyrocketed to a record Rs 23,622 crore ($2.83 billion), a 12% increase from the previous year’s Rs 21,083 crore. This surge is not just about money, it signals a fundamental shift in India’s military-industrial complex, proving that ‘Make in India’ is more than just a slogan.
Private Sector Leads the Charge
One of the most striking takeaways from India’s defence export boom is the growing dominance of the private sector. In FY 2024-25, private defence firms contributed a staggering Rs 15,233 crore, an impressive 64% of total defence exports. This indicates a changing landscape where private companies are no longer just suppliers to India’s armed forces but are now major players in the global arms trade.
Unlike earlier years when Defence Public Sector Undertakings (DPSUs) held a monopoly, the rise of private firms like Tata Advanced Systems, Bharat Forge, Larsen & Toubro, and Adani Defence has injected new energy into the sector. These companies are now manufacturing advanced weaponry, aerospace systems, and naval equipment, making India a serious competitor in the global defence market.
DPSUs Make a Comeback
While the private sector is taking the lead, the contribution of DPSUs remains significant. In FY 2024-25, DPSU exports soared by 42.85% to Rs 8,389 crore. This is a positive development, especially considering that government-run defence firms have historically struggled to match global efficiency standards. The turnaround suggests that DPSUs are adapting to modern production techniques and becoming competitive in the international market.
The success of DPSUs also highlights India’s ability to offer affordable alternatives to Western-made weapons. Countries looking for cost-effective defence solutions are increasingly turning to India, which can now provide high-quality military equipment at a fraction of the cost.
Where is India Exporting?
India’s defence exports now reach nearly 80 countries, showcasing its growing footprint in the global arms trade. Indian-made defence products—including ammunition, missiles, radars, armoured vehicles, and naval systems—are being shipped to nations across Southeast Asia, Africa, and even Europe.
Recent reports suggest that India’s biggest customers include Southeast Asian nations like the Philippines, which purchased the BrahMos supersonic cruise missile system. Other potential buyers include Vietnam, Indonesia, and several African countries, all of which are looking for reliable and affordable defence equipment.
Notably, India’s growing exports aren’t just about weapons. Indian firms are also supplying key components and subsystems to global defence manufacturers. This means that Indian-made parts are now being integrated into military platforms produced by major defence giants in the US, Europe, and Israel.
The Policy Push Behind the Boom
India’s record-breaking defence exports haven’t happened by accident. The government has undertaken major policy reforms to boost the defence manufacturing sector, with a sharp focus on self-reliance. Some key measures include:
- Faster Approvals: The government has streamlined the approval process for exporting defence equipment, cutting down bureaucratic delays.
- Incentives for Private Players: Defence startups and private firms are receiving financial incentives and technology support to scale up production.
- Focus on R&D: A renewed emphasis on research and development has led to innovations in indigenous missile systems, drones, and radar technology.
- Global Outreach: India has actively promoted its defence products at international expos and through diplomatic channels, securing major contracts.
These efforts have made Indian defence products more attractive to foreign buyers, positioning the country as a reliable supplier.
What’s Next? The Rs 30,000 Crore Ambition
Defence Minister Rajnath Singh has set an ambitious target of reaching Rs 30,000 crore ($3.6 billion) in exports for FY 2025-26. The goal aligns with India’s broader vision of achieving Rs 1.75 lakh crore ($21 billion) in total defence production by 2025.
To reach this target, India will need to expand its customer base, develop new-generation weaponry, and continue enhancing the competitiveness of its defence firms. The government is also exploring long-term partnerships with friendly nations to supply aircraft, submarines, and other high-value military assets.
Conclusion
India’s transformation from a massive arms importer to a rising defence exporter marks a turning point in its geopolitical strategy. With a record-breaking Rs 23,622 crore in exports, the country is proving that its defence industry is no longer just about self-sufficiency—it’s about global influence.
As India continues to ramp up production, secure new deals, and innovate in military technology, the future of its defence exports looks even more promising. If the current trajectory holds, India could soon be counted among the world’s leading arms exporters, fundamentally reshaping the balance of power in the global defence market.
