Made in India for the world: India aims for defence exports to rise to Rs 30,000 crore in FY26

Driven by government policy reforms, ease of doing business initiatives, and a push for self-reliance, India now exports to over 100 nations. (AFP/File photo)

India's defence exports to around 100 countries have soared 34 times in the past 11 years, from Rs 686 crore in FY14 to Rs 23,622 crore in FY25. Experts say a slew of policy measures including simplification of industrial licensing procedure, removal of parts and components from license regime, along with easing rules for exports of equipment have contributed to India transforming from a net importer of defence equipment to an exporter.

Analysts say India’s defence exports should rise at a much higher pace than currently, as the country’s equipment are very well integrated with latest technology. In FY25, India’s defence exports surged to a record high of Rs 23,622 crore, up 12 percent from Rs 21,083 crore in FY24. A senior official told Moneycontrol that India is eyeing exports to cross Rs 30,000 crore in the current fiscal year FY26.

The defence ministry has set a target for 2029 to increase defence exports to Rs 50,000 crore. "India has evolved from a largely import-dependent military force to the one increasingly focused on self-reliance and indigenous production. In a major boost to defence exports, wide range of items from ammunition, arms, sub-systems/systems and parts & components have been exported to around 80 countries in the just-concluded financial year," a statement by defence ministry said on April 1.

"Over the years, we’ve mastered every technology required for modern warfare as well as futuristic. The futuristic warfare rests with artificial intelligence, and we’re capable of producing that equipment too," said Ravi Gupta, former director, DRDO. Besides BrahMos, our other ballistic missiles such as K4, K15, artillery guns, and tech enabled rifles have received attention from external buyers, noted Gupta.

The April statement by the defence ministry had said that the Defence Public Sector Undertakings (DPSUs) have shown a significant increase of 42.9% in their exports in the FY25 reflecting the growing acceptability of Indian products in the global market and the ability of the Indian defence industry to be a part of the global supply chain.

The private sector and DPSUs have contributed Rs 15,233 crore and Rs 8,389 crore respectively in defence exports of FY25, whereas the corresponding figures for FY24 were Rs 15,209 crore and Rs 5,874 crore respectively. Notably, defence exports have grown 21 times, from Rs 4,312 crore in the 2004-14 decade to Rs 88,319 crore in the 2014-24 decade, highlighting India’s expanding role in the global defence sector, said the release.

Driven by government policy reforms, ease of doing business initiatives, and a push for self-reliance, India now exports to over 100 nations. Among those, the top three destinations are USA, France, and Armenia. Countries in South East Asia, and South America are also major export destination for Indian defence equipment, as per sources.

Currently, India's export portfolio includes advanced equipment such as bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes. In the annual report for 2022-23, the ministry listed a few "important equipment" exported since 2017 – weapon stimulators, tear gas launcher, torpedo loading mechanism, night vision monocular & binocular, armoured protection vehicle, weapons locating radar, HF radio, etc.

A report by Elara Capital states that India has earmarked about 160 military platforms, weapons and systems for potential sale to "friendly countries" as part of its efforts to increase exports. The list includes 19 aeronautical systems, 41 armament & combat systems, four missile systems, 27 electronic and communication systems, 10 life protection items, four microelectronic devices, 28 naval systems, 16 nuclear biological chemical equipment and seven other materials.

In 2021, the defence ministry accorded ease of approval and rules to enhance exports, says the report. The ministry allowed exports of complete systems, platforms and subsystems without the requirement of permission from the government in each case; authorised participating and showcasing defence products in foreign defence expos, such as Sri Lanka, the UAE, Bahrain and Singapore; and approved revised standard operating procedures for exports of military stores.

The ministry also approved a new system of 'Open General Export License (OGEL)'. The OGEL notification is a one-time export license, which permits the industry to export specified items to destinations, enumerated in the OGEL, without seeking export authorization during its validity.

The Department of Defence Production has a dedicated portal for application and processing of export authorisation requests, and 1,762 Export Authorisation were issued in FY 25 compared to 1,507 in the preceding year, registering a growth of 16.92%. The total number of exporters also grew by 17.4% in the same period, an official release said.