New Delhi: India’s defence exports have surged more than 30 times in the past 10 years, with the ongoing Russia-Ukraine war and the Israel-Hamas conflict giving a fillip to more growth as several countries look at beefing up their arsenal.
The country’s growing defence industry now supplies to over 90 countries globally, with the government actively pushing easier licensing systems and approvals and shedding its shyness when it comes to supplying lethal arms.
While the US has emerged as the biggest defence export destination, the government is also focusing on countries in Africa and elsewhere to supply defence goods, with easier lines of credit and a diplomatic push.
Defence ministry data shows that exports jumped by an astronomical 78 percent in the first quarter of 2024-2025. Defence exports in April-June leapt to Rs 6,915 crore from Rs 3,885 crore in the year-ago period.
Defence exports were already on a roll. They hit a record Rs 21,083 crore (approximately $2.63 billion) in 2023-2024, a growth of 32.5 percent over the previous fiscal’s Rs 15,920 crore.
The Narendra 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.
US emerges as biggest export destination
But what exactly is India exporting? While the defence ministry does not disclose details of exports or specific countries, ThePrint spoke to multiple sources in the government, industry and diplomatic circles who said India’s defence exports were wide-ranging.
Defence exports by state-owned and private sector companies include ammunition, small arms—including sniper rifles and specialised sight systems—bulletproof jackets and helmets, electronic items, armoured vehicles, lightweight torpedoes, simulators, drones and fast-attack vessels.
While Myanmar has traditionally been a big destination for Indian defence exports—mainly fuses and ammunition—countries like Israel and Armenia have also emerged as important buyers in recent years.
Israel imports certain sight systems, small arms manufactured by its subsidiary here along with certain fuses and ammunition besides drone structures and parts.
While India has signed some big-ticket standalone deals, like the BrahMos contract with the Philippines and one for artillery guns and air defence systems with Armenia, the biggest importer of Indian defence goods is the US, which accounts for nearly 50 percent of India’s total defence exports.
This is primarily because American companies now source over a billion dollars’ worth of systems, subsystems and parts from India annually to feed into their global supply chain network and as part of their offset commitments.
“The idea is for India not just to emerge as a global manufacturing hub for complete defence systems but to be part of the global supply chains for big players,” said a source in the defence establishment.
“Be it the Americans or the French, they are now sourcing a lot from India, which shows how far the domestic industry has grown.’”
Leading the pack of US companies is Boeing. In 2016, Boeing and Tata Group set up a joint venture called Tata Boeing Aerospace Ltd (TBAL) in Hyderabad.
Its facility spread over 14,000 square metres manufactures aero-structures for Boeing’s AH-64 Apache helicopter, including fuselages, secondary structures and vertical spar boxes for customers worldwide.
The facility can produce up to eight fuselages a month and has supplied over 200 Apache fuselages so far. It has also supplied over 1,500 secondary structures and vertical spar boxes for the Apache, besides other items for the company’s 737 family of airplanes on the civilian side, according to the American Chamber of Commerce.
Besides the Tatas, another leading company in the business is Bengaluru-based Dynamatic Technologies, which has been manufacturing the ramp and complex aft pylon for Chinook heavy-lift helicopters, as well as power and mission cabinets for the P-8 Poseidon maritime reconnaissance aircraft.
Bengaluru-based Rossell Techsys manufactures wire harnesses and electrical panels for the AH-64 Apache, and the harness for several Boeing Defence, Space & Security (BDS) platforms including fighter aircraft such as the V-22 Osprey, CH-47 Chinook, F-15 and F/A-18 Super Hornet.
Besides these companies, Bengaluru-based SASMOS HET Technologies manufactures electrical panel assemblies for the F/A-18 Super Hornet and F-15 Strike Eagle. State-run Hindustan Aeronautics Limited (HAL) manufactures F/A-18 gun bay doors, while Bharat Electronics Limited (BEL) manufactures IFF (Identify Friend/Foe) combat identification systems and speech secrecy systems for the P-8I.
Sources said that while most of their initiatives are part of the offset commitments, it also makes business sense now to widen the basket of the supply chain.
The other big US defence company driving the export market for India is Lockheed Martin through its two joint ventures with the Tatas in Hyderabad.
Established in 2010 between Tata Advanced Systems Limited (TASL) and Lockheed Martin Aeronautics, one joint venture has manufactured over 200 empennages for its C-130J transport aircraft as part of its global supply chain. The joint venture is now the single source supplier for global C-130 empennages.
The other joint venture is the world’s sole producer of S-92 helicopter cabin components, which has so far delivered over 157 S-92 cabins.
Significantly, fighter wings are now produced in India, too. Besides these, the US imports several other tools and even sight systems from India.
Indo-MIM is India’s top defence exporter
India’s top private exporter isn’t the Tata Group with its multiple deals, or another big player like Mahindra or Kalyani Group, which has struck deals with Armenia for its artillery guns. Defence Ministry data shows that Bengaluru-based Indo-MIM occupies the top spot.
This company is a manufacturer of metal injection molding (MIM) parts, besides other sectors.
It is one of the world’s leading suppliers of precision-engineered products that use MIM as the core manufacturing technology, with customers in more than 50 countries in the Americas, Europe, and Asia. Besides India, it has manufacturing facilities in the US and the UK.
The company’s roots date back to 1997, when AF Technologies India was founded as a 50-50 joint venture with North American MIM company Precision Cast Components (PCC) and Dr Krishna Chivukula, an Indo-American industrialist, with the intent of establishing a manufacturing base for MIM products in India.
In 2001, 100 percent ownership of the venture was acquired from the American collaborator, and INDO-MIM was born.
There are several other private players in the defence export business like MKU, SSS Defence and Tonbo Imaging.
Also read: Army scouts for 90 tracked air defence systems with minimum 50% indigenous content
Munitions India leads the race among defence PSUs
Defence ministry data shows that state-run Munitions India—which makes a variety of rockets, artillery shells and other munitions and ammunition—leads the race when it comes to defence exports.
Sources were tight-lipped about the exact exports and destination, but the company’s order book stands at about Rs 6,000 crore from foreign countries to be supplied over the next three years.
The company, which came into existence in 2021 after the corporatisation of the Ordnance Factory Board (OFB), achieved an export milestone of ammunition and explosives worth Rs 1,726 crore in 2023-24.
“The company will export everything that it produces. From simple ammunition to the 155mm artillery shells. Specific countries cannot be mentioned as per the contract obligations,” said a source when asked what kind of ammunition and munitions are being exported.
Sources said that while the names of countries cannot be revealed, they include some in the Middle East and even one in Europe.
Actual defence export will be when big-ticket items are sold
As former Northern Army commander Lt Gen H S Panag (Retd) noted in his article for ThePrint, India has been exporting arms since 1959 to a select few, friendly countries.
However, the exports were sporadic, and technology was constantly ageing.
“By 2013-14, our exports were a meagre $110 million (at then prevailing exchange rates). A defence export strategy did not exist until August 2014. Exports were carried out under the Foreign Trade Policy after obtaining a no-objection certificate (NOC) from the Ministry of Defence [MoD],” he wrote.
“In September 2014, the Modi government formulated and promulgated a Strategy for Defence Exports. It focused on export promotion/facilitation, and regulation.”
Government sources said that while defence exports have increased, the real impact of the new policies and steps undertaken will be felt in the coming years.
“We are actively engaging with foreign countries, especially those in Africa, the Middle East and Asia Pacific who are keen to beef up their defence. These countries would prefer quality products at cheaper rates than the Western items which are very expensive,” a source from the defence establishment said.
Sources said that all defence attaches and diplomats have been told to actively engage with host countries and help in connecting firms based on their requirements.
“Till a few years back, one could not imagine selling BrahMos missiles to the Philippines and the slew of deals signed with Armenia. There are more countries who are looking at similar systems along with our indigenous attack helicopters. We are focused on closing these deals because eventually one leads to the another and that is why India will be seen as a true defence exporter,” said a source.
Sources said another big-ticket item that India is offering to countries is the ability to manufacture and supply fast patrol vessels among others.
“A defence ecosystem is being developed. It is taking shape and you will see the results in the coming years. We are also making our forces handhold the industry and desist from imports unless very important,” another source said.
Sources said that government initiatives have led to the setting up of a private assembly plant for military transport aircraft, the C-295, and one for commercial helicopters.
“These plants can eventually cater to global demand also. Along with a manufacturing base, the effort is to establish India as an MRO (Maintenance, Repair and Overhaul) hub. All this is a work in progress,” the source said.
(Edited by Sugita Katyal)
Also read: India-Japan 2+2: What Jaishankar, Rajnath focused on during 3rd edition of bilateral dialogue