India’s Defense Exports Hit Record High as Indigenous Arms Industry Gains Global Ground

• Defense exports crossed $4 billion in FY 2025–26, rising over 60% year-on-year.

• Public and private sectors jointly driving growth; PSUs contribute ~55%.

• Equipment exported to 100+ countries, including the US, France, Israel, and Germany.

• Armenia and the Philippines lead in major indigenous systems purchases.

• Push aligns with “Make in India” and self-reliance goals.

• India expanding global footprint while reducing import dependence.

  
  

 

India’s defense sector has reached a new milestone, with exports surpassing $4 billion in the last fiscal year, signaling a dramatic expansion of the country’s military manufacturing capabilities. According to official figures, defense exports climbed more than 60 percent compared to 2024, underscoring New Delhi’s sustained efforts to position itself as a leading global supplier of arms and military technology.

The Ministry of Defence reported that exports in fiscal year 2025–26 touched 38,424 billion rupees (approximately $4.15 billion), marking the highest level ever recorded. Defense Minister Rajnath Singh described the surge as evidence of growing international confidence in India’s domestically developed systems and advanced production capacity. He emphasized that the achievement reflects the strengthening of India’s self-reliant defense ecosystem and its collaborative industrial base.

Public sector undertakings accounted for nearly 55 percent of total exports, while private firms contributed the remainder. The balanced participation between state-run and private companies highlights the maturing structure of India’s defense manufacturing landscape.

Indian-made military equipment now reaches more than 100 countries. Key buyers include major powers such as the United States and France, alongside partners like Armenia. Exported items range widely, from missiles, artillery systems, and naval platforms to radar technology, rocket launchers, electronic components, and aerospace subsystems.

Since taking office in 2014, Prime Minister Narendra Modi has consistently prioritized defense exports, aligning them with flagship national initiatives such as “Make in India” and “Atmanirbhar Bharat,” both aimed at strengthening domestic manufacturing and reducing dependence on imports. Today, India supplies military hardware to several high-income nations, including Australia, Canada, Germany, Israel, Japan, Saudi Arabia, South Korea, the United Kingdom, and the United States, among others.

Leading Importers of Indian Military Equipment

A 2023 government report highlighted the United States as one of the largest markets for Indian defense products. American imports include protective gear such as bulletproof jackets and helmets, as well as firearm components, armored solutions, electronic subsystems, and aerospace parts. Numerous Indian firms—ranging from Tata Advanced Systems and Tata Boeing Aerospace to MKU and Bharat-based aerospace suppliers—play a role in fulfilling U.S. demand.

Israel is another major customer, procuring protective equipment, weapon components, batteries, and defense subsystems. Exports to Israel involve partnerships with companies such as Larsen & Toubro, Adani-Elbit collaborations, Kalyani Rafael Advanced Systems, and several specialized electronics and defense manufacturers.

The United Kingdom remains a significant destination for Indian defense exports, sourcing protective gear, electronics, aerospace components, and engineering services. Meanwhile, France—a close strategic partner of India—imports firearm components, batteries, and aerostructures from Indian firms including Dassault Reliance Aerospace and Safran’s Indian subsidiaries.

Germany, Europe’s largest economy, also sources armored protection gear and weapon components from Indian manufacturers such as MKU and Indo MIM, reinforcing India’s footprint within the European defense supply chain.

Armenia and the Philippines: Major Buyers of Indigenous Systems

While Western nations primarily import components and subsystems, countries such as Armenia and the Philippines have emerged as prominent buyers of India’s fully indigenous weapons platforms.

Armenia has significantly expanded its arsenal with Indian-made systems, acquiring 15 Akash-1S surface-to-air missile systems—comprising roughly 400 missiles—along with four batteries of the Pinaka multi-barrel rocket launcher system and more than 90 Advanced Towed Artillery Gun System (ATAGS) 155mm howitzers. Additional purchases include Swathi Weapon Locating Radars, MArG 155mm wheeled howitzers, and Zen anti-drone technologies.

The Philippines has also deepened defense ties with India. In 2022, Manila finalized a $375 million agreement for three batteries of the shore-based BrahMos anti-ship missile system. Reports have indicated that additional acquisitions may follow under the country’s Horizon 3 military modernization initiative.

Indonesia has similarly moved to strengthen maritime capabilities through cooperation with India. In March, an Indonesian defense spokesperson confirmed that Jakarta agreed to procure the BrahMos missile system as part of efforts to modernize its naval and coastal defense infrastructure, though details of the order remain undisclosed.

Balancing Imports and Indigenous Growth

Despite becoming one of the fastest-growing arms exporters, India continues to rank among the world’s largest defense importers. However, the share of domestically produced equipment within its own armed forces has steadily increased, reflecting a broader push toward technological self-sufficiency.

The latest export milestone highlights a dual transformation: India is not only reducing reliance on foreign suppliers but also carving out a larger presence in the global defense marketplace. As international demand for Indian-built systems rises, the country’s ambition to become a major defense manufacturing hub appears closer to realization than ever before.