India is setting its sights on a significant boost in defence exports, fueled by the success of its 'Make in India' initiative and recent operational achievements. The nation's defence exports have surged to a record high of ₹23,622 crore in FY 2024-25, marking an impressive 34-fold increase since 2013-14. This growth is a testament to India's strengthened global defence manufacturing footprint and its growing influence in the international defence market.
Factors Driving the Export Boom
Several factors have contributed to this remarkable growth. The government's "Atmanirbhar Bharat" (Self-Reliant India) campaign has been instrumental in reducing import dependency and boosting domestic manufacturing. Policy changes, such as streamlining industrial licensing processes and deregulating components from licensing requirements, have further strengthened the defence sector. The Defence Production Department's online platform for managing export authorisations has also played a crucial role in expediting the process.
Operation Sindoor's Impact
The recent Operation Sindoor, conducted by the Indian armed forces, has showcased the effectiveness and reliability of indigenously developed weapon systems. The successful deployment of weapons like BrahMos missiles, Akash air defence systems, and D4 anti-drone systems has instilled confidence in India's defence manufacturing capabilities. Prime Minister Narendra Modi has emphasized that the world now recognizes the arrival of Made-in-India defence equipment in 21st-century warfare.
Private Sector and DPSU Contributions
Both the private sector and Defence Public Sector Undertakings (DPSUs) have played a significant role in the export surge. In FY 2024-25, the private sector contributed ₹15,233 crore to defence exports, while DPSUs recorded exports worth ₹8,389 crore. The DPSU sector alone witnessed a 42.85% growth in exports, indicating strong international acceptance of Indian defence products. The rise in indigenous defence manufacturing has also led to substantial returns for investors in major defence manufacturing PSUs over the past few years.
Ambitious Targets and Future Outlook
Building on this momentum, the Indian government has set an ambitious target of achieving ₹50,000 crore in defence exports by 2029. This goal reflects India's commitment to becoming a global leader in defence manufacturing. To achieve this, the government is investing heavily in defence and aerospace manufacturing, with several defence hubs being set up. Furthermore, many global companies have expressed interest in sharing critical defence and aerospace knowledge with India.
Expanding Global Footprint
India's defence exports now reach around 80 countries. The range of exported items includes ammunition, arms, subsystems/systems, and parts and components. The increase in export authorisations and the number of exporters further highlights the expanding reach of India's defence manufacturing capabilities.
Investor Confidence
The Nifty India Defence index has climbed significantly, reflecting investor confidence in the strategic importance and commercial growth of India's domestic defence sector. This positive sentiment is driven by rising global demand for arms, India's proven manufacturing capabilities, and recent geopolitical tensions.
In conclusion, India's defence sector is experiencing a remarkable transformation, driven by government initiatives, technological advancements, and successful military operations. With a clear focus on self-reliance and an ambitious export target, India is well-positioned to become a major player in the global defence market.
