India Emerges as a Leading Defense Exporter
New Delhi: Prime Minister Narendra Modi has declared that India has become one of the world's leading defense exporters, marking a significant transformation in the nation's strategic and manufacturing capabilities. Speaking at the Hindustan Times Leadership Summit in New Delhi, PM Modi highlighted India's growing confidence and economic strength amidst global uncertainties.
The Prime Minister noted the turbulent global landscape of the 21st century, characterized by economic crises, wars, a pandemic, and rapid technological changes. Despite these challenges, India has emerged as a confident nation with a compelling growth story. This confidence is rooted in sustained economic momentum, as reflected in the recently released national accounts.
India's defense exports have seen a remarkable surge, reaching a record high of ₹23,622 crore (approximately $2.76 billion) in the financial year 2024-25. This represents a 12.04% increase over the previous fiscal year and an impressive 34-fold rise since 2013-14. The government is aiming for ₹50,000 crore (US$5.9 billion) worth of defence exports by 2029-30.
This remarkable growth is a result of the ‘Make in India’ initiative, which has spurred domestic manufacturing and self-sufficiency in the defense sector. India has transitioned from being heavily reliant on imports to focusing on indigenous production, successfully exporting a diverse range of military equipment, including ammunition, weaponry, systems, subsystems, and components, to around 80 countries.
The private sector has played a significant role in this export growth, contributing ₹15,233 crore in FY 2024-25, while Defence Public Sector Undertakings (DPSUs) generated ₹8,389 crore in exports. Around 100 companies are currently involved in the export of military gear.
The major platforms being exported include the Pinaka multi-barrel rocket launcher, radars, simulators, mine-protected vehicles, armored vehicles, and various components. The United States has emerged as a major importer of Indian-made defense materials, alloys, steel, components and sub-systems.
To further boost defense exports, the government has implemented several policy changes, including streamlining industrial licensing processes, deregulating components from licensing requirements, and extending license validity periods. The Department of Defence Production has also established a dedicated online portal to manage export authorization requests, with 1,762 export authorizations issued in FY 2024-25, marking a 16.92% increase from the previous year.
In related developments, India and Russia have agreed to promote joint manufacturing of spare parts and components for Russian-origin defense equipment in India. This initiative, under the "Make in India" program, will involve technology transfer and the establishment of joint ventures to meet the needs of the Indian Armed Forces and enable exports to friendly third countries.
While India's defense exports have grown significantly, there is still a need to enhance the indigenization of the defense industry to achieve the government's ambitious export targets.
