Note: Data for fiscal 2026-2027 is available up to 21 July 2026 Source: Department of Defence Production
- India’s defence exports have skyrocketed from Rs 1,522 crore in fiscal 2017 (April 1 to March 31) to Rs 38,424 crore last fiscal, an increase of more than 2,500%. This steep growth has been driven by the rapid expansion of domestic defence manufacturing capacity and the country’s growing presence in the global market.
- Key policy initiatives, such as Make in India and the broader push for defence self-reliance, have helped catalyse this shift, supporting a gradual transition from being a major importer to emerging as a defence manufacturing nation.
- Today, ~65% of defence equipment is produced domestically, marking a notable shift from the 65-70% import dependence seen in the past and signalling greater supply security and resilience.
- India appears well positioned to meet the government’s defence export target of Rs 40,000 crore for this fiscal, having already recorded Rs 9,168.94 crore in exports in the first four months (as of July 21, 2026).
- Geopolitical tensions are likely to keep global defence demand elevated, supporting export growth and sustained industrial expansion.
- Indian defence products are now exported to more than 80 countries, supported by a growing exporter base of 145 firms reflecting broader participation across the defence manufacturing ecosystem.
- This momentum signals increasing international confidence in Indian defence systems and technologies.
- The government’s target of achieving Rs 50,000 crore in defence exports by fiscal 2029 further reinforces the country’s position as an emerging global defence exporter.
- India has steadily expanded its defence manufacturing base through policy reforms and greater private sector participation.
- Over the past decade, the country has built a robust and diversified indigenous defence ecosystem comprising 16 defence public sector undertakings, ~500 licensed defence companies and ~17,000 micro, small and medium enterprises.
- As industrial capacity has grown and the sector’s ease of doing business has improved, the number of defence industrial licenses has more than tripled, from 258 in 2015 to 834 as of March 2026.
- These developments are strengthening domestic production capabilities, encouraging innovation across the value chain and advancing India towards its broader objective of defence self-reliance and sustained manufacturing growth.
- The country has further strengthened its position as a global defence exporter through recent agreements to supply BrahMos supersonic cruise missiles and Astra air-to-air missiles to Indonesia. This builds on earlier defence exports to the Philippines, Armenia and Vietnam.
- India is also expanding exports of artillery systems, radars, naval platforms, armoured vehicles and other defence equipment, reflecting growing international confidence in its defence capabilities.
- These strategic partnerships are enhancing the country’s presence in the global defence market and reinforcing its role as a trusted security partner in the Indo-Pacific and other regions.
- Policy initiatives under the Atmanirbhar Bharat Abhiyan, greater private sector participation and improvements in ease of doing business have accelerated defence manufacturing, positioning India as an emerging global hub for defence production and exports.
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