India’s defence exports rose sharply in the financial year 2025–26, registering a growth of over 62 per cent to reach an all-time high of ₹38,424 crore, underlining the country’s expanding footprint in the global arms market and its push towards self-reliance in defence manufacturing.
The latest figures mark a significant jump from ₹23,622 crore recorded in FY25, reflecting a year-on-year increase of nearly ₹14,800 crore. The surge is being seen as a key indicator of India’s improving capability to design, develop and manufacture advanced defence systems for international markets.
Defence Minister Rajnath Singh described the milestone as a reflection of growing global confidence in India’s indigenous defence products. He noted that the steady rise in exports is the result of sustained policy support, industry participation, and technological advancement within the country.
According to official data, India is now exporting defence equipment to more than 80 countries. The export basket includes a wide range of products such as missiles, artillery systems, aircraft components, naval systems, drones and electronic equipment. The diversification of exports highlights India’s transition from being largely an importer of defence hardware to an emerging exporter.
The contribution to defence exports has come from both public sector undertakings and private industry. Defence Public Sector Undertakings (DPSUs) accounted for a little over half of the total exports, while private companies contributed the remaining share. This balance points to the growing role of private players in a sector that was traditionally dominated by state-owned entities.
The government has, over the past few years, introduced a series of measures aimed at boosting domestic manufacturing and exports. These include simplifying export procedures, promoting indigenous design and development, and encouraging foreign investment and joint ventures in defence production.
The sharp rise in exports also aligns with the broader objective of the government’s self-reliance initiative, which seeks to reduce dependence on imports and position India among leading global defence exporters.
While challenges remain — including stiff competition in international markets and the need for continued technological upgradation — the current trajectory suggests that India’s defence sector is steadily gaining ground on the global stage.