New Delhi: India’s defence exports have seen a massive 62.66% increase, touching an all-time high of Rs 38,424 crore in financial year 2025-26. This is a rise of Rs 14,802 crore over the previous fiscal year’s figure of Rs 23,622 crore.
Giving details, the Union Defence Ministry said Thursday that Defence Public Sector Undertakings (DPSUs) and the private sector have contributed 54.84% and 45.16%, respectively.
It added that the DPSUs’ exports surged by 151 percent compared to the previous year, with private firms showcasing their robust presence by recording an increase of 14 percent.
In terms of value of contribution, the private sector accounted for Rs 17,353 crore worth of defence exports, while DPSUs contributed Rs 21,071 crore. Their respective figures in the previous financial year stood at Rs 15,233 crore and Rs 8,389 crore.
“This sharp rise highlights the increasing global acceptance of Indian made defence products and the sector’s growing integration into international supply chains,” a ministry statement said.
“Apart from being a successful global partner for systems/sub-systems, India is exporting defence equipment to more than 80 countries as of FY 2025-26. The number of exporters underwent a surge to 145 from 128, a 13.3% rise from the previous fiscal,” it added.
As ThePrint reported earlier, the US has emerged as the biggest defence export destination with American companies procuring a lot of sub-systems, including fuselages from India.
The Modi government had in 2020 set an ambitious export target of Rs 35,000 crore ($5 billion) in aerospace and defence goods and services for the next five years. This was part of the government’s plan to achieve a turnover of Rs 1.75 lakh crore ($25 billion) in defence manufacturing by 2025.
Sources in the defence establishment said the ongoing Russia-Ukraine conflict along with tensions between Armenia and Azerbaijan and desire of multiple countries to modernise military preparedness have helped fuel India’s defence exports.
Major exports of defence PSUs consist primarily of various types of munitions and fuses besides lightweight torpedoes.
Sources said that private companies are exporting multiple systems, including armoured vehicles, small arms, bulletproof jackets and even unmanned aerial vehicles, among other things.
As part of the defence diplomacy initiative, the government has laid a lot of emphasis on defence attaches to look for opportunities and boost exports. The next phase of plans is to get foreign players to build in India for their own markets and exports.
(Edited by Nida Fatima Siddiqui)