India Now A Major Exporter of Arms: Defence Industry Hits Record Rs 38,424 Crore Export Revenue In FY 2025-26

India’s defence exports have surged to an all-time high of Rs 38,424 crore in FY 2025–26, a sharp jump of over Rs 14,800 crore from the previous year. The numbers tell a larger story. This 62.66% growth is not just a statistical milestone — it marks a deeper transition in how India is positioned within the global defence ecosystem. What was once one of the world’s largest arms importers is now steadily building its profile as a supplier.The shift is being driven by both scale and diversification. India now exports defence equipment to more than 80 countries, with the number of exporters rising to 145. This expanding footprint reflects growing confidence in Indian-made systems, particularly in segments such as artillery, naval platforms, avionics,

and missile subsystems. The momentum is also cumulative. Over the past five years, defence exports have nearly tripled, indicating that this is not a one-off spike but part of a sustained upward trajectory.

Defence exports soar to a record Rs 38,424 crore in FY 2025–26, registering a strong 62.66% growth over the previous fiscal. DPSUs lead with an impressive 151% rise in exports, while the private sector posts a steady 14% increase. India continues to emerge as a global defence…

— Ministry of Defence, Government of India (@SpokespersonMoD) April 2, 2026

DPSUs Lead, Private Sector Consolidates

A closer look at the data shows a dual-engine growth model. Defence Public Sector Undertakings (DPSUs) accounted for a significant share of the surge, contributing Rs 21,071 crore — a 151% increase over the previous fiscal. This sharp rise suggests that state-owned entities are not only scaling production but also finding stronger acceptance in international markets.At the same time, the private sector continues to expand its presence, contributing Rs 17,353 crore in exports. While its growth rate of 14% is more measured, it reflects consolidation rather than stagnation. Private firms are increasingly integrated into global supply chains, supplying components, subsystems, and specialised technologies to international partners.This balance between DPSUs and private industry is central to India’s defence export model. It combines the scale and credibility of state-backed production with the agility and innovation of private enterprise.

Policy Push And Global Acceptance

The surge in exports is closely tied to sustained policy intervention. The Ministry of Defence, through the Department of Defence Production, has focused on streamlining export processes, simplifying licensing procedures, and improving ease of doing business. A revamped online portal and simplified standard operating procedures have reduced friction for exporters, enabling faster clearances and greater transparency.Political backing has also been explicit. Rajnath Singh described the achievement as evidence that India is “marching ahead towards becoming a global manufacturing hub for defence equipment”. He credited the progress to the broader vision of self-reliance under Atmanirbhar Bharat, emphasising that an “impressive defence exports success story” is being built. The policy framework has been complemented by growing international demand. Indian defence products are increasingly seen as cost-effective, reliable, and adaptable — particularly for countries seeking alternatives to traditional suppliers.

What This Means Strategically

Beyond the headline numbers, the implications are strategic. A stronger export base enhances India’s defence diplomacy, allowing it to build long-term partnerships through equipment supply, training, and maintenance ecosystems. It also reduces dependence on imports, strengthening national security by deepening domestic capabilities. At the same time, the rise in exports places new demands on quality, consistency, and technological advancement. Competing in the global defence market requires not just affordability, but sustained performance and reliability across diverse operational environments. For now, the trajectory is clear. India is no longer just building for itself — it is building for the world.