Record Defence Exports in FY 2025–26

Context:

Recently, India achieved a historic milestone by recording defence exports worth ₹38,424 crore in FY 2025–26. This represents a remarkable growth of 62.66% compared to the previous year (₹23,622 crore). This achievement marks a decisive step towards India becoming a “global defence manufacturing hub.”

Background:

- - Over the past decade, India has been transitioning from a traditional defence importer to a defence exporter. Initiatives such as “Make in India” and “Atmanirbhar Bharat” have provided new momentum to the domestic defence industry.
  - Today, India exports defence equipment to more than 80 countries, and the number of exporters has increased from 128 to 145, reflecting growing competition and capacity in the defence sector.

Key Data and Trends:

- - - Total defence exports: ₹38,424 crore
    - Growth rate: 62.66%
    - Contribution of Defence Public Sector Undertakings (DPSUs): ₹21,071 crore (54.84%)
    - Contribution of private sector: ₹17,353 crore (45.16%)
    - Growth rate of DPSUs: 151%
    - Export destinations: 80+ countries
  - This clearly indicates that both the public and private sectors are playing a significant role in defence exports.

Drivers of Growth:

- - Policy Reforms
    - Defence Acquisition Procedure (DAP) 2020 improved transparency and efficiency
    - Export authorization processes were simplified
    - Introduction of an online export portal
  - Policy of Self-Reliance
    - “Make in India” and “Atmanirbhar Bharat” promoted domestic production
    - Reduction in import dependence
  - Private Sector Participation
    - Increasing collaboration between DPSUs and private companies
    - Entry of startups and MSMEs

Key Export Items:

- - India is now exporting a wide range of defence products, such as:
    - Varunastra torpedo
    - AEW&C systems
    - Components of T-90 tanks
    - Defence electronics and subsystems
  - This diversity reflects India’s growing technological capability and innovation.

Growth in Indigenous Defence Production

Currently, around 65% of defence equipment in India is manufactured domestically.

Major Indigenous Defence Products

- - Aerospace Platforms
    - Tejas fighter aircraft
    - Dhruv helicopter
    - Light Utility Helicopter (LUH)
    - Dornier-228
  - Missile and Defence Systems
    - Akash missile
    - Agni-V
    - BrahMos
    - Nag ATGM
  - Naval and Land Platforms
    - INS Vikrant
    - INS Arihant
    - Arjun tank
    - Pinaka rocket system
  - Defence Electronics and Emerging Technologies
    - Swati radar
    - Software-defined radio
    - Electronic warfare systems
    - UCAV and AVIRAL drones

Significance:

- - Strategic Strengthening
    - Enhances India’s geopolitical position globally
    - Promotes defence diplomacy
  - Economic Benefits
    - Development of high-technology industries
    - Employment generation
    - Foreign exchange earnings
  - Self-Reliance
    - Reduction in import dependence
    - Expansion of domestic industry
  - Position in Global Supply Chain
    - India is emerging as a reliable defence supplier

Challenges:

- - Limitations in high-end research and development (R&D)
  - Global competition (USA, Russia, China)
  - Challenges related to quality standards and certification
  - Political uncertainties in export markets

Way Forward:

To sustain growth in defence exports, India must focus on high-tech and high-value products and increase investment in research and development (R&D). Encouraging private sector and startup participation while exploring new global markets is essential. Additionally, ensuring a simple and stable policy framework will help strengthen India’s position as a global defence exporter.

Conclusion:

The record defence exports in FY 2025–26 are not merely an economic achievement but a sign of India’s strategic transformation. If India continues to focus on innovation, quality, and global collaboration, it can establish itself as a leading defence exporter in the near future.