India Emerges as Major Arms Supplier to Europe, Defence Secretary Highlights Surge in Ammunition Exports

India has strengthened its position in the European defence market, with growing exports of artillery ammunition, explosives and other military equipment contributing to a significant expansion in international defence trade. Defence Secretary Rajesh Kumar Singh highlighted the development on October 23, 2026, stating that India had emerged as Europe’s third-largest arms exporter during the previous year.

Speaking at the KPMG Agrasar Bharat Manch 2026 event in New Delhi, Singh attributed the expansion to growing European military procurement requirements and the development of India’s domestic defence manufacturing industry. Referring to a recent Bloomberg investigation, he noted that Indian manufacturers had substantially increased shipments of artillery shells, standard ammunition and other military supplies to European customers.

The development comes as India’s annual defence exports reached a record ₹38,424 crore during financial year 2025–26, representing an increase of 62.66% over the previous year. The expansion reflects India’s growing participation in international defence supply chains and the increasing contribution of domestic manufacturers to overseas military procurement.

Defence Secretary Highlights India’s Growing Presence in Europe

Addressing participants at the event, Defence Secretary Rajesh Kumar Singh discussed the transformation of India’s defence industrial ecosystem over the past decade. He observed that the country’s manufacturing capabilities had expanded beyond the traditional network of government-owned defence enterprises to include a substantial number of private companies, medium-sized manufacturers and technology startups.

Referring to the recent growth in European demand, Singh cited Bloomberg reporting that placed India among the continent’s leading suppliers of military equipment. He attributed the development primarily to increased purchases of conventional ammunition, including artillery shells and both large- and small-calibre ammunition.

The growth has been particularly visible in ammunition exports to Eastern and Central Europe, where governments have accelerated efforts to replenish military inventories and strengthen defence preparedness. European procurement programmes have created additional opportunities for manufacturers capable of supplying ammunition and other essential military equipment.

The Defence Secretary also emphasised that India intends to develop its role in international defence markets through industrial partnerships, joint ventures and closer integration with European defence manufacturing networks.

Indian Ammunition Exports to Europe Record Substantial Growth

A Bloomberg investigation published in October 2026 examined the expansion of Indian ammunition exports to European markets following the beginning of the Russia–Ukraine conflict in February 2022.

According to the trade data cited in the investigation, Indian companies shipped at least $872 million worth of ammunition and related materials to Europe during the subsequent four-year period. Comparable shipments during the preceding four years were valued at approximately $49.2 million, indicating an increase of more than 1,600%.

The products covered by the analysis included artillery shells, mortar ammunition, propellants and explosives. These categories have experienced considerable demand as European countries seek to replenish military inventories and expand their production and procurement capabilities.

The investigation identified India as the second-largest supplier of these specified ammunition-related products to a group of 13 Eastern and Central European countries, behind South Korea. This ranking applies to the defined product categories and geographical group rather than the entire European market for military equipment.

The findings nevertheless demonstrate a substantial expansion in India’s presence within an important segment of European defence procurement.

Europe’s ReArm Europe Initiative Creates New Opportunities

The European Union’s ReArm Europe Plan, subsequently developed under the Readiness 2030 framework, aims to strengthen European defence capabilities through increased investment, coordinated procurement and expansion of industrial production.

The European Commission introduced the programme in March 2025, outlining financial and regulatory measures designed to mobilise up to €800 billion in additional defence investment. The initiative includes mechanisms intended to support joint procurement and accelerate the availability of military equipment.

A central objective is to address gaps in European military capabilities and improve the continent’s capacity to sustain defence production. Ammunition availability, industrial output and supply-chain resilience have become important considerations in this effort.

India’s expanding defence manufacturing sector has positioned domestic producers to respond to some of these requirements, particularly in conventional ammunition and associated military supplies.

While European defence procurement frameworks contain eligibility and localisation requirements, industrial cooperation and appropriate manufacturing partnerships provide opportunities for Indian companies to participate in the region’s expanding defence market.

India’s Defence Exports Reach Record ₹38,424 Crore

The growth in European demand forms part of a wider expansion in India’s defence exports.

According to figures released by the Ministry of Defence on April 2, 2026, India’s defence exports reached ₹38,424 crore in FY 2025–26, compared with ₹23,622 crore during FY 2024–25. The increase of ₹14,802 crore represented annual growth of 62.66%.

Defence Public Sector Undertakings accounted for ₹21,071 crore, representing approximately 54.84% of total exports. Private sector companies contributed ₹17,353 crore, accounting for the remaining 45.16%.

The Ministry reported that exports by Defence Public Sector Undertakings increased by 151% compared with the previous financial year, while private sector exports registered growth of approximately 14%.

The number of Indian defence exporters also increased from 128 to 145 during the financial year. By the end of FY 2025–26, Indian defence products were reaching customers in more than 80 countries.

These figures illustrate the expansion of India’s defence export ecosystem and its increasing participation in international markets. The ₹38,424 crore total represents defence exports to all international destinations rather than shipments to Europe alone.

Indigenous Defence Production Reaches ₹1.78 Lakh Crore

India’s export expansion has been accompanied by substantial growth in domestic defence manufacturing.

Official Ministry of Defence figures released in June 2026 showed that indigenous defence production reached a record ₹1.78 lakh crore during FY 2025–26. This represented an increase of 15.6% over the previous financial year’s production value of ₹1.54 lakh crore.

The Ministry also reported that domestic defence production had increased by approximately 110% compared with FY 2020–21, when the value stood at ₹84,643 crore.

Defence Public Sector Undertakings and other public sector enterprises accounted for approximately 76% of production during FY 2025–26. The private sector contributed the remaining 24%, representing its highest recorded share.

The expansion reflects growing manufacturing capabilities across several segments of the defence industry, including ammunition, military electronics, aerospace equipment, armoured systems, naval platforms and specialised components.

An expanding domestic production base provides Indian manufacturers with greater capacity to address both national defence requirements and international demand. It also supports the development of supply chains involving smaller enterprises, engineering companies and specialised technology providers.

Private Companies and Startups Expand India’s Defence Industrial Base

Defence Secretary Rajesh Kumar Singh highlighted the increasing diversity of India’s defence manufacturing ecosystem during his October 23 address.

According to the figures he presented, the sector now includes approximately 16 major public sector companies, around 840 large and medium-sized companies holding industrial licences, and nearly 17,000 smaller enterprises, including startups.

This industrial expansion has broadened India’s manufacturing capabilities beyond the traditional public sector production structure. Private companies now participate in the development and production of ammunition, precision engineering components, electronic systems, unmanned platforms and other military technologies.

Small and medium enterprises also contribute through specialised manufacturing, machining, materials processing, electronics and the supply of components required by larger defence manufacturers.

The participation of startups has introduced additional capabilities in areas such as autonomous systems, advanced sensors, artificial intelligence and specialised defence electronics.

Together, these enterprises form an increasingly extensive manufacturing network capable of supporting domestic procurement programmes and international contracts.

India Plans Defence Manufacturing Joint Ventures with European Partners

The Defence Secretary outlined plans to expand India’s participation in European defence procurement through joint ventures and cross-border manufacturing partnerships.

Under this approach, Indian defence companies could establish manufacturing partnerships with European enterprises to participate in procurement programmes that require local industrial involvement.

European defence manufacturers would also have opportunities to establish or expand manufacturing operations in India, subject to the country’s domestic procurement and localisation requirements.

Singh emphasised the similarities between the objectives of European industrial participation policies and India’s Make in India framework. Both approaches seek to encourage domestic manufacturing, develop industrial capabilities and strengthen the security of defence supply chains.

He also expressed interest in greater integration between Indian and European defence manufacturing networks. Such cooperation could create opportunities in component production, ammunition manufacturing, advanced engineering and the development of specialised military systems.

The proposed partnerships represent a potential route for Indian companies to establish a more sustained presence in European defence procurement, extending beyond individual export transactions.

Indigenous Design and Manufacturing Remain Central to India’s Defence Policy

India continues to prioritise domestic defence production while expanding its international partnerships.

During his address, Rajesh Kumar Singh stated that the government seeks to direct approximately 75% of annual defence capital expenditure towards domestic procurement. He estimated the annual capital expenditure involved at between $20 billion and $25 billion.

The Defence Secretary also highlighted the importance of the Indigenous Design, Development and Manufacturing category, commonly known as IDDM, within India’s defence acquisition framework.

The IDDM approach gives preference to military products designed, developed and manufactured within India. Its objective is to strengthen domestic technological capabilities while reducing dependence on foreign suppliers for critical military systems.

India’s industrial strategy increasingly combines domestic research and development, licensed manufacturing, technology partnerships and indigenous product development.

The growing export market provides an additional commercial opportunity for manufacturers investing in these capabilities. International demand can support production volumes, encourage improvements in manufacturing processes and strengthen the competitiveness of Indian defence products.

Defence Cooperation with Europe and Southeast Asia Expands

India’s engagement with European defence markets is developing alongside its broader international defence relationships.

During his remarks, Singh highlighted India’s established defence cooperation with France and growing engagement with Greece and Cyprus. He observed that India’s defence procurement relationships had diversified over time, reducing its earlier concentration on Russian-origin military equipment.

The Defence Secretary’s recent visit to Greece and Cyprus also formed part of efforts to expand cooperation with European partners in areas of shared strategic interest.

Beyond Europe, Indian defence manufacturers are pursuing opportunities in Southeast Asia, where countries have demonstrated interest in military equipment, artillery systems, small arms and defence components.

India’s existing defence export portfolio includes a variety of equipment, ranging from protective gear and ammunition to sophisticated military systems.

The expansion of these relationships demonstrates the increasing importance of international industrial cooperation in India’s defence manufacturing strategy.

Expanding India’s Role in International Defence Supply Chains

India’s growing ammunition exports to Europe illustrate the emergence of new opportunities for domestic manufacturers within international defence supply chains.

The increase in European demand has coincided with substantial improvements in India’s defence production capacity, a broader industrial base and rising participation by private companies.

The combination of domestic manufacturing growth and overseas procurement requirements has enabled Indian suppliers to expand their presence in markets traditionally served by established international defence producers.

At the same time, the latest trade data underline the importance of distinguishing between different categories of defence exports. India’s rapid rise in ammunition supplies to Eastern and Central Europe represents a specific industrial achievement rather than a ranking across every category of European military imports.

The development nevertheless provides a measurable indication of India’s strengthening position in conventional ammunition manufacturing and international defence trade.

India Strengthens Its Position as a Global Defence Manufacturing Partner

India’s expanding defence exports reflect a significant transformation in the scale and reach of its domestic manufacturing industry.

With defence production reaching ₹1.78 lakh crore and annual exports climbing to ₹38,424 crore in FY 2025–26, the country has established a larger industrial foundation for meeting domestic requirements and participating in international procurement.

The substantial increase in ammunition exports to Europe highlights the ability of Indian manufacturers to respond to changing global demand. At the same time, proposed joint ventures with European partners offer opportunities to deepen industrial cooperation and expand participation in international defence programmes.

As India continues to strengthen indigenous design capabilities, manufacturing capacity and export infrastructure, its defence industry is becoming increasingly integrated with global supply chains.

The developments announced by Defence Secretary Rajesh Kumar Singh reflect India’s growing contribution to international defence manufacturing and the expanding opportunities available to its public sector enterprises, private manufacturers and technology startups.

---

References

1. DD India — October 24, 2026
India Now 3rd Largest Exporter of Defence Goods to Europe: Defence Secretary.
https://ddindia.co.in/2026/10/india-now-3rd-largest-exporter-of-defence-goods-to-europe-defence-secretary/

2. Akashvani News — October 24, 2026
India Emerges as Third-Largest Arms Exporter to Europe: Defence Secretary.
https://newsonair.gov.in/india-emerges-as-third-largest-arms-exporter-to-europe-defence-secretary/

3. Press Information Bureau, Ministry of Defence — April 2, 2026
Defence Exports Skyrocket to Record Rs 38,424 Crore in Financial Year 2025–26, a Massive 62.66% Increase Over Previous Fiscal.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248124

4. Press Information Bureau, Ministry of Defence — June 17, 2026
Defence Production Soars to a Record Rs 1.78 Lakh Crore in Financial Year 2025–26.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2273824

5. Bloomberg News — October 22, 2026
War-Torn Europe Propels Resurgent Indian Defense Industry.
By Dan Strumpf, Vignesh Radhakrishnan and Sudhi Ranjan Sen.
Bloomberg investigation into Indian ammunition exports and European procurement.

6. European Commission — March 19, 2025
Questions and Answers on ReArm Europe Plan/Readiness 2030.
https://ec.europa.eu/commission/presscorner/api/files/document/print/en/qanda_25_790/QANDA_25_790_EN.pdf

7. The Economic Times / ANI — October 23, 2026
India Became Third-Largest Exporter of Arms to Europe: Defence Secretary RK Singh.
https://economictimes.indiatimes.com/news/defence/india-became-third-largest-exporter-of-arms-to-europe-defence-secretary-rk-singh/articleshow/135144721.cms

---