India’s Defense Exports Soar: A Rising Regional Security Powerhouse

India’s defense exports have skyrocketed to a record ₹23,622 crore (approximately $2.76 billion) in fiscal year 2024-25, reflecting a 12.04% surge from ₹21,083 crore the previous year. This milestone, a 34-fold increase from ₹694 crore in 2013-14, positions India among the top 25 global defense exporters, supplying over 100 countries. Far from being a mere economic triumph, this growth underscores India’s emergence as a pivotal security provider in the Indo-Pacific, fostering regional stability and countering geopolitical challenges through strategic partnerships and indigenous innovation.

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A Decade of Strategic Transformation

Policy Reforms Fueling Growth

India’s defense export boom is rooted in a decade of reforms under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, designed to achieve self-reliance and global competitiveness. The Defence Production and Export Promotion Policy (DPEPP) 2020 set an ambitious $5 billion export target by 2025, supported by streamlined industrial licensing, extended license validity, and the removal of parts and components from licensing requirements. The SRIJAN portal has accelerated indigenization, with over 10,000 of 34,000 listed items localized by January 2024.

Robust Budgetary Support

The defense budget has grown 2.7 times, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, empowering domestic production and export capabilities. In FY 2024-25, defense public sector undertakings (DPSUs) contributed ₹8,389 crore, a 42.85% increase, while private firms added ₹15,233 crore. Industry leaders like Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Larsen & Toubro, and Tata Advanced Systems are driving innovation and global outreach.

Flagship Exports and Strategic Alliances

Diverse and High-Impact Portfolio

India’s export catalog is a showcase of advanced technology, featuring the BrahMos supersonic cruise missile, Akash Surface-to-Air Missile, Advanced Towed Artillery Gun Systems (ATAGS), naval fast attack craft, offshore patrol vessels, Light Combat Aircraft (LCA) Tejas, and Advanced Light Helicopters (ALH Dhruv). A landmark ₹3,800 crore ($440.3 million) deal in February 2025 to supply BrahMos missiles to Indonesia highlights India’s growing influence in Southeast Asia. Other key partners include Vietnam, the Philippines, Nigeria, the UAE, the USA, France, and Armenia, with the latter emerging as a significant buyer in 2023-24.

Strengthening Regional Security

India’s exports are strategic tools to counter China’s expanding influence in the Indo-Pacific. The Philippines’ $375 million BrahMos acquisition enhances its maritime deterrence, while Vietnam’s Indian-made patrol vessels bolster its coast guard amid South China Sea tensions. These deals, coupled with joint exercises like the 2024 India-Vietnam naval drills, foster interoperability and deepen military ties. India’s emphasis on technology transfers and local manufacturing ensures long-term capability building for its partners, distinguishing it from restrictive global suppliers.

Innovation and Future Ambitions

Pioneering Through iDEX

The Innovations for Defence Excellence (iDEX) program, launched in 2018, engages startups, MSMEs, and academia, offering grants up to ₹1.5 crore to develop cutting-edge technologies like drones, AI, and cyber defense. Notable examples include TechEagle’s ₹100 crore investment in drone manufacturing and JSW Defence’s ₹800 crore drone facility in Telangana. Two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu further enhance this ecosystem, generating jobs and fostering innovation.

Ambitious Targets

India aims to achieve ₹50,000 crore in defense exports by 2029, with Defense Minister Rajnath Singh projecting ₹30,000 crore for FY 2025-26. Plans for regional service and maintenance hubs in countries like Vietnam and the UAE will enhance after-sales support, making Indian equipment more attractive. Collaborations with emerging defense hubs like Australia and Saudi Arabia are also on the horizon, focusing on joint manufacturing and R&D.

Challenges on the Horizon

Despite its strides, India faces challenges in sustaining this growth. Dependence on foreign technology, bureaucratic delays, and an underdeveloped supply chain hinder competitiveness. Penetrating markets dominated by the USA, Russia, and China requires improved product quality, faster certifications, and robust after-sales support. Ethical considerations, including compliance with International Humanitarian Law (IHL), are critical to maintaining India’s reputation as a responsible exporter. The defense market, projected to grow from $17.3 billion in 2024 to $29.8 billion by 2033 at a 5.6% CAGR, demands continuous investment in AI, unmanned systems, and space security.

Conclusion: A Vision of Strength and Stability

India’s defense export surge is a testament to its strategic vision of self-reliance and regional leadership. By equipping allies with advanced systems, India is not only boosting its economy but also shaping a balanced security architecture in the Indo-Pacific. As Prime Minister Narendra Modi noted during the Bharat Shakti exercise in March 2025, “Our technologies are strengthening both our forces and our global standing.” With a robust policy framework, innovative ecosystem, and growing international trust, India is poised to redefine its role as a global defense powerhouse, exporting not just equipment but security and stability.

(With inputs from Economic Times)