India’s Defence Exports Hit Record ₹38,424 Crore in FY 2025-26, Surge 63% in a Year

The latest figures represent a threefold increase in defence exports over the past five years, highlighting the sustained momentum generated by structural reforms and strategic policy direction.

India’s defence exports have reached an unprecedented ₹38,424 crore in FY 2025-26, registering a sharp 62.66% growth over the previous fiscal’s ₹23,622 crore, marking a historic milestone in the country’s journey towards becoming a global defence manufacturing powerhouse.

The surge—amounting to an increase of ₹14,802 crore in just one year—reflects the rapid transformation of India’s defence industrial ecosystem, driven by policy reforms, increased private sector participation, and rising global demand for indigenous military equipment.

Public and Private Sectors Drive Growth

The record performance has been powered by both Defence Public Sector Undertakings (DPSUs) and private industry:

• DPSUs contributed ₹21,071 crore (54.84%), witnessing a remarkable 151% growth from ₹8,389 crore in FY 2024-25

• Private sector exports stood at ₹17,353 crore (45.16%), up from ₹15,233 crore, reflecting steady expansion and competitiveness

This balanced contribution underscores the emergence of a robust dual-engine growth model in India’s defence exports, combining scale-driven public sector capabilities with innovation-led private enterprises.

Threefold Growth in Five Years

The latest figures represent a threefold increase in defence exports over the past five years, highlighting the sustained momentum generated by structural reforms and strategic policy direction.

India is now exporting defence equipment to over 80 countries, ranging from advanced systems and platforms to components, sub-systems, and services. The exporter base has also expanded significantly, with the number of defence exporters rising from 128 to 145, a 13.3% increase in a single year.

Global Acceptance of ‘Made in India’ Defence Products

The sharp rise in exports signals growing international confidence in Indian defence manufacturing. Indian firms are increasingly becoming part of global supply chains, supplying critical components and complete systems to international partners.

From artillery systems and naval equipment to avionics, radars, and protective gear, Indian defence products are gaining traction in both developed and emerging markets.

Government Push and Policy Reforms

Raksha Mantri Shri Rajnath Singh lauded the achievement, calling it a testament to India’s rising capabilities under the leadership of Prime Minister Shri Narendra Modi.

In a statement, he emphasized that India is steadily progressing towards becoming a global hub for defence manufacturing, with exports emerging as a key pillar of growth.

The surge has been supported by a series of government initiatives aimed at improving ease of doing business and boosting exports:

• Streamlining of export authorisation processes

• Launch of a revamped online portal for faster clearances

• Simplification of Standard Operating Procedures (SOPs)

• Policy support for private sector participation and innovation

These measures have reduced regulatory bottlenecks and enabled faster turnaround times for export approvals, making Indian defence firms more competitive globally.

Strategic Implications

The growth in defence exports is not just an economic milestone but also a strategic one. It enhances India’s:

• Geopolitical influence through defence partnerships

• Technological capabilities via global collaborations

• Self-reliance (Aatmanirbhar Bharat) in defence production

• Foreign exchange earnings and industrial growth

With global defence spending on the rise and supply chain diversification underway, India is well-positioned to capture a larger share of the international defence market.

The Road Ahead

As India continues to scale up manufacturing capabilities, invest in R&D, and deepen international defence cooperation, the export trajectory is expected to maintain strong momentum.

The government has set ambitious targets to further increase defence exports in the coming years, positioning India among the top global defence exporters.

The FY 2025-26 milestone thus represents not just a record, but a clear signal of India’s emergence as a reliable, competitive, and strategic player in the global defence ecosystem.