India’s Defence Exports Hit Record Rs 38,424 Crore in FY 2025–26, Signalling Deeper Industrial Maturity

India’s defence export sector has registered its strongest performance on record, with outbound shipments reaching Rs 38,424 crore in financial year 2025–26, a sharp 62.66 per cent increase over the previous year’s Rs 23,622 crore. The latest figures underscore the accelerating expansion of India’s military-industrial base and reflect the growing acceptance of Indian defence products in overseas markets.

The new export milestone is significant not only for its scale, but also for the composition of growth. Defence Public Sector Undertakings accounted for 54.84 per cent of total exports, while the private sector contributed 45.16 per cent. In absolute terms, DPSUs exported defence equipment worth Rs 21,071 crore, while private industry contributed Rs 17,353 crore. Compared with the previous financial year, exports from DPSUs surged by 151 per cent, while private sector exports rose by 14 per cent, indicating that state-owned manufacturers and private firms are both playing increasingly important roles in India’s export push.

The data points to a broader structural shift in India’s defence manufacturing ecosystem. Over the last five years, defence exports have increased by around three times, suggesting that India is moving beyond its traditional role as a major arms importer and is gradually consolidating its position as a credible supplier of military systems, subsystems, components and support equipment.

A particularly important indicator of this change is market reach. India is now exporting defence equipment to more than 80 countries, demonstrating expanding international confidence in the reliability, cost competitiveness and operational utility of Indian-made platforms and systems. At the same time, the number of defence exporters has risen from 128 to 145 in FY 2025–26, a 13.3 per cent increase over the previous fiscal. That growth suggests a widening industrial base and stronger participation from a larger pool of domestic manufacturers.

The Ministry of Defence has linked this export growth to sustained policy support, industrial reforms and procedural simplification. According to the official release, the Department of Defence Production has introduced measures aimed at easing export processes, including a revamped online portal and a simplified standard operating procedure for export authorisations. These reforms are intended to reduce friction in approvals and improve the responsiveness of India’s defence export architecture in an increasingly competitive global market.

Raksha Mantri Rajnath Singh described the performance as evidence that India is advancing steadily toward becoming a global hub for defence manufacturing. The record export figure also aligns with the government’s larger strategic objective of strengthening Aatmanirbhar Bharat in defence, while simultaneously positioning Indian industry in international supply chains for military hardware and specialised systems.

From a strategic perspective, the latest numbers carry weight beyond commerce alone. Rising defence exports improve industrial scale, strengthen domestic production capability, support technology retention, and create opportunities for sustained investment in research, manufacturing and systems integration. Export success also enhances India’s diplomatic and strategic profile, as defence trade increasingly functions as an instrument of long-term military cooperation and geopolitical outreach. This is especially relevant as countries seek diversified procurement sources amid supply chain disruptions and shifting security alignments. The sharp rise in exports from both DPSUs and private firms suggests that India’s defence sector is beginning to acquire the production depth and institutional confidence needed to compete more seriously in global markets. That inference is supported by the official export totals, the rise in exporter numbers, and the widening international footprint of Indian defence products.

In effect, FY 2025–26 marks a notable step in India’s transformation from a domestically focused defence producer into a more visible export-oriented military manufacturing power. While sustaining this momentum will require continued improvements in quality assurance, delivery timelines, after-sales support and technology depth, the current figures show that India’s defence export story is no longer aspirational rhetoric alone. It is increasingly becoming a measurable industrial reality.

Source: PIB