Rise in India’s Defence Exports: Growth, Trends & Key Initiatives

India’s defence exports reached a record ₹38,424 crore (FY 2025–26), reflecting rapid growth and rising global demand for indigenous military equipment.

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Key Trends in Defence Export

• Record Growth in Exports: Defence exports increased by 62.66%, from ₹23,622 crore (FY 2024–25) to ₹38,424 crore (FY 2025–26).
• Exports Nearly Tripled in Five Years: India’s defence exports have grown nearly three times between FY 2020–21 and FY 2025–26, indicating sustained policy success.
• DPSUs Leading Growth: Defence Public Sector Undertakings recorded a 151% rise, contributing ₹21,071 crore (FY 2025–26).
• Rising Private Sector Role: Private sector exports grew by 14%, contributing ₹17,353 crore (FY 2025–26).
• Expanding Global Reach: India exported defence equipment to 80+ countries (FY 2025–26), enhancing global presence.
• Myanmar (28% of total export) emerged as the largest destination followed by the Philippines (19 per cent) and Armenia (15 per cent), together making up more than 60 per cent of India’s export destinations.
• Naval Dominance: Ships accounted for 55 per cent of the total defence exports between 2016 and 2025 which is higher than all other categories.
• Increase in Exporters Base: Number of defence exporters rose from 128 (FY 2024–25) to 145 (FY 2025–26).

Key Initiatives to Promote Defence Export

• iDEX (Innovations for Defence Excellence): Supports startups and MSMEs in developing indigenous defence technologies for global markets.
• Defence Industrial Corridors (DICs): Establishes manufacturing hubs in Uttar Pradesh and Tamil Nadu to strengthen production and export ecosystems.
• Positive Indigenisation Lists: Restricts import of select defence items to boost domestic production and export capability.
• Streamlined Export Procedures (EoDB): Introduces online authorisation and simplified licensing to reduce delays and enhance ease of doing business.
• Export Promotion Mechanisms: Provides market intelligence and support to access new international defence markets.

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Significance of Defence Export

• Economic Growth and Employment: Boosts manufacturing, generates high-skilled jobs, and targets ₹50,000 crore exports by 2029.
• Strategic and Geopolitical Influence: Enhances India’s role as a reliable defence partner, strengthening ties with countries like Armenia and the Philippines.
• Self-Reliance (Aatmanirbhar Bharat): Reduces import dependence while building domestic capability for advanced weapon systems.
• Integration into Global Supply Chains: Positions India as a key supplier of defence components and platforms globally.
• Technological Advancement: Encourages innovation and development of cutting-edge defence technologies.

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