India's defense sector is undergoing a significant transformation, shifting from being one of the world’s largest importers of arms to a notable exporter. This transition is not merely about economics; it signifies India's growing strategic importance and its ambition to be a regional security provider. Recent trends in defense exports underscore this narrative.
In the fiscal year 2024-25, India's defense exports reached a record high of ₹23,622 crore (approximately US$ 2.76 billion). This represents a 12.04% increase over the previous fiscal year. While this growth rate is commendable, it's worth noting that it is slightly lower than the 32.4% surge seen in 2023-24. The government has set an ambitious target to increase defense exports to ₹50,000 crore by 2029, indicating a strong commitment to further expansion in this sector.
A key factor driving this growth is the increasing self-reliance in defense production. The Ministry of Defence (MoD) has emphasized the "Aatmanirbhar Bharat" (self-reliant India) initiative, which promotes indigenous design, development, and manufacturing of defense equipment. This has led to a substantial increase in defense production, which is expected to reach ₹1.75 trillion by the end of FY25 and aims for ₹3 trillion by 2029.
Both the private sector and Defence Public Sector Undertakings (DPSUs) have contributed to the growth in defense exports. In FY24-25, the private sector accounted for ₹15,233 crore of exports, while DPSUs contributed ₹8,389 crore. Notably, DPSUs have shown a significant increase of 42.85% in their exports, reflecting the growing acceptability of Indian products in the global market.
India now exports defense equipment to over 80 countries. The United States, France, and Armenia have emerged as top buyers of Indian defense equipment. The export portfolio includes a variety of items, such as missile systems (like the Akash Surface-to-Air Missile), Advanced Towed Artillery Gun Systems (ATAGS), naval platforms, and aerospace assets like the Light Combat Aircraft (LCA) Tejas and Advanced Light Helicopters (ALH Dhruv).
Beyond the numbers, India's growing defense exports have broader implications for its role as a regional security provider. By supplying defense equipment to friendly nations, India enhances their security capabilities and fosters closer strategic partnerships. This is particularly relevant in the Indo-Pacific region, where India is increasingly seen as a key player in maintaining stability and countering the growing influence of China.
India's approach to regional security extends beyond arms sales. It includes:
While India has made significant progress in defense exports and regional security, challenges remain. One is the need for continued investment in research and development (R&D) to maintain a technological edge. Another is the need to streamline defense procurement processes and further incentivize private sector participation.
Despite these challenges, India's trajectory as a defense exporter and regional security provider is clear. The country's growing defense capabilities, coupled with its commitment to strategic partnerships and regional stability, position it as a key player in the evolving geopolitical landscape.
