India is significantly strengthening its defense capabilities through strategic international partnerships, a surge in defense exports, and a growing global presence.
A key development is the deepening defense and trade relationship between India and the United Arab Emirates (UAE). On January 19-20, 2026, the two nations signed a Letter of Intent to advance a Strategic Defense Partnership, marking a formal commitment to cooperation in defense manufacturing, joint training, cyber security, and counter-terrorism. This agreement was reached during UAE President Mohamed bin Zayed Al Nahyan's visit to New Delhi. As part of the broader agreement, India also signed a $3 billion deal to purchase liquefied natural gas from the UAE, solidifying Abu Dhabi's position as a major energy supplier to India. The two countries have set an ambitious goal of doubling bilateral trade to $200 billion by 2032. This partnership builds upon the Comprehensive Economic Partnership Agreement (CEPA) established in 2022, which has already boosted bilateral commerce to approximately $100 billion by 2024-25. Defence ties between India and the UAE are managed through a Joint Defence Co-operation Committee at the Ministry level, which was established with the signing of a Memorandum of Understanding on Defence Cooperation in June 2003.
India is also making strides in expanding its defense exports. In particular, the country has begun exporting the Pinaka multi-barrel rocket launcher system to Armenia. The first batch of guided Pinaka rocket systems was recently flagged off by Defence Minister Rajnath Singh from a facility in Nagpur. This marks the beginning of deliveries under a deal worth approximately Rs 2,000 crore for four Pinaka systems, along with anti-tank rockets, ammunition, and other equipment. India had previously supplied the unguided variant of the Pinaka rockets to Armenia between July 2023 and November 2024. The Pinaka system is known for its accuracy and extended range, with the latest version capable of reaching up to 120 km. Defence Minister Rajnath Singh has stated that India's defence exports have reached a record Rs 24,000 crore, a significant increase from below Rs 1,000 crore a decade ago. Domestic defense production has also grown substantially, from Rs 46,425 crore in 2014 to Rs 1.51 lakh crore. The Indian government is aiming for ₹3 lakh crore (US$35 billion) in domestic manufacturing of defence equipment.
Furthermore, India is actively pursuing defense export opportunities in Africa, with New Delhi aiming to achieve $5 billion in annual defense exports by 2029. Tata Advanced Systems, for example, has identified Africa as a key focus region, with Morocco representing the company's first foothold on the continent. Many African countries are seeking to modernize their armed forces and diversify their suppliers, creating opportunities for Indian defense companies.
These efforts align with India's broader strategy to reduce its reliance on imports and enhance domestic manufacturing through the "Make in India" policy. As a result, private sector defense companies have experienced significant growth. India's defence output value increased to roughly ₹1.27 lakh crore in FY 2023–24. The value of defence output has climbed by more than 60% during FY 2019–20.
India possesses one of the world's largest military forces, with over 1.44 million active personnel. The country's defence budget for the financial year 2025 is ₹7.86 lakh crore (US$93 billion). According to the Global Firepower Index 2025, India ranks as the world's fourth most powerful military, after the United States, Russia, and China.
