India’s defence exports have reached an unprecedented milestone of ₹38,424 crore in FY 2025‑26, marking a sharp 62.66 per cent increase from the previous year’s figure of ₹23,622 crore.
This rise of ₹14,802 crore is the largest annual jump ever recorded and reflects the growing global demand for Indian‑made military equipment and technologies.
The achievement coincides with record domestic defence production of ₹1.78 lakh crore in FY 2025‑26, underscoring the rapid expansion of India’s indigenous defence ecosystem. Together, these figures highlight the country’s emergence as a significant player in the global defence market.
According to the Ministry of Defence, Defence Public Sector Undertakings contributed 54.84 per cent of total exports, while the private sector accounted for 45.16 per cent.
DPSU exports surged by 151 per cent year‑on‑year, while private sector exports grew by 14 per cent. This demonstrates the increasing contribution of both public and private players to India’s defence ambitions.
The Ministry emphasised that these numbers reflect rising international confidence in Indian defence products and the country’s growing integration into global supply chains. Industry leaders, however, argue that the story goes beyond export statistics and points to a deeper transformation in India’s defence sector.
Amardeep Singh, Founder of Armory, noted that warfare has become faster, more autonomous, asymmetric, and technology‑driven. He highlighted drones, cyber systems, AI‑enabled surveillance, electronic warfare platforms, and unmanned systems as defining features of modern conflict. Singh stressed that indigenous capability‑building is no longer optional but a national necessity.
He explained that India is increasingly building sovereign capabilities across design, engineering, software, sensors, electronics, and deployment‑ready platforms. The next phase of Atmanirbhar Bharat, he argued, will be defined not just by manufacturing equipment domestically but by developing technologies that are designed, tested, and deployed within the country.
Private industry participation has been a major factor behind this shift. Ankur Shah, Managing Director of Krishna Defence & Allied Industries Limited, stated that record production and export numbers demonstrate how India’s defence ecosystem has matured beyond simple manufacturing.
He observed that defence manufacturing is no longer dominated by a handful of large companies. Startups, MSMEs, private manufacturers, technology providers, and research institutions are now playing a larger role in capability development. This broader participation is accelerating innovation, strengthening domestic supply chains, and making India’s defence value chain more resilient.
Industry observers believe this diversification is helping India move away from its long‑standing dependence on imported defence systems. Over the past decade, government reforms, indigenisation drives, and procurement policies have encouraged domestic manufacturing while opening the sector to greater private participation.
Sarjan Shah, Managing Director at Shield AI, described the ₹1.78 lakh crore defence production milestone as a structural shift in India’s defence‑industrial identity. He noted that private companies are now moving beyond participation to build real capabilities that support a self‑reliant defence and aerospace ecosystem.
Shield AI recently partnered with JSW Defence to localise manufacturing and maintenance capabilities for its V‑BAT unmanned aircraft system in Hyderabad. Backed by a $90 million commitment, the initiative aims to strengthen India’s domestic defence technology ecosystem. Shah added that the company’s autonomy software platform, Hivemind, is being positioned to help Indian teams develop and deploy mission autonomy solutions aligned with national requirements.
He credited government policy reforms, continued support from the Ministry of Defence, and growing confidence among the armed forces in India’s domestic manufacturing ecosystem for this progress.
Bharat Gite, MD and CEO of Taural India, emphasised that the defence sector demonstrates the growing strength of India’s domestic industrial ecosystem. He explained that the focus has evolved from manufacturing capacity to building capabilities, supply chains, and specialised technologies. True self‑reliance, he argued, is achieved not through production alone but through the ability to design, develop, and manufacture critical components domestically.
Taural India has specialised capabilities in manufacturing complex aluminium castings to support the Army, Navy, and Air Force. The company contributed to the Sarath Infantry Combat Vehicle (BMP‑II) by developing the Cylinder Block Crankcase domestically. This achievement broke a 34‑year import cycle from Russia and resulted in annual savings of ₹10.5 crore.
The momentum in India’s defence production is evident in the numbers. Defence exports have nearly tripled over the last five years, rising from just over ₹12,800 crore in FY 2021‑22 to ₹38,424 crore in FY 2025‑26. The government has consistently stated its ambition of transforming India into a global defence manufacturing hub, and recent export growth suggests that this objective is gaining traction.
Industry leaders believe the next challenge lies beyond production volumes. Amardeep Singh argued that the focus must now shift from production growth to capability depth, with the goal of building sovereign, scalable technologies capable of addressing real‑world battlefield requirements.
Ankur Shah echoed this view, stating that India’s greatest opportunity lies in strengthening indigenous design, engineering excellence, advanced materials, and next‑generation defence technologies. He emphasised that the current momentum reinforces confidence that India is steadily moving from being a buyer of defence technologies to becoming a creator of them.
This shift could ultimately define India’s position in the global defence market. For now, the record export figures send a clear signal: India is no longer merely a major buyer of military hardware. It is increasingly emerging as a manufacturer, innovator, and exporter of defence technologies to the world.
Agencies
