As India signals deeper defence ties with the US, trends in American defence exports over the past decade point to Washington's growing dominance in the global weapons trade, with India emerging as an increasingly important market.
The US has sharply boosted its share of global defence exports since the pandemic, amid heightened geopolitical tensions, stronger defence spending by allies and sustained demand for advanced military technologies. Between 2007 and 2012, the US accounted for roughly 30.7 percent of global defence exports, which increased to about 33.3 percent during 2013-2018. During 2019-2024, that share climbed sharply to over 42 percent.
In October, New Delhi signed a 10-year defence framework pact with Washington to expand defence cooperation, following months of trade friction after the US imposed steep tariffs linked to Russian oil and arms purchases. That 25 percent penal tariff on Indian goods has been lifted on February 6 after the US claimed that India has pledged to stop directly or indirectly importing Russian oil.
Aircraft continue to dominate US defence exports to the world, accounting for nearly 60 percent of shipments in 2019-2024, broadly in line with pre-2013 levels after a temporary dip. Missiles have emerged as the fastest-growing segment, with their share rising from about 11 percent in 2007-2012 to over 20 percent in the latest period, reflecting greater global emphasis on precision strike capability and air defence systems. Sensors have also gained prominence, while traditional platforms such as armoured vehicles, ships and artillery have gradually ceded share.
US defence export destinations have evolved as well. Earlier buyers included Asian allies such as South Korea, Australia and Japan, but recent demand has strengthened in West Asia and Europe. Saudi Arabia remains a major customer, while Japan, Ukraine, Qatar and Australia have climbed the rankings amid shifting security priorities.
India’s position within this landscape has fluctuated but remains notable. The country ranked 24th among US defence buyers during 2007-2012, rose sharply to fifth place in 2013-2018, and stood at 13th during 2019-2024, accounting for roughly 2.6 percent of US arms exports in the latest period. This trend reflects India’s gradual diversification away from Russia while maintaining a multi-vendor procurement approach.
Category-wise imports underline this shift. US equipment has steadily gained share in India’s aircraft, missile, engine and sensor imports over the past decade. Engines, in particular, now account for more than a quarter of India’s imports from the US in these categories, while aircraft acquisitions have remained consistently strong.
India’s pledge to deepen defence cooperation with Washington could bolster the role of US suppliers to India.
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