On the Road to ₹30,000 Cr: India’s Rise in Global Defense Trade

India’s transformation from a major defense trader to a leading global supplier is remarkable. In just over a decade, India’s defense exports have surged 34 times, rising from Rs 686 crore in FY14 to Rs 23,622 crore in FY25. This growth signifies not just a change in numbers, but a broader strategic, technological, and industrial shift that aligns with the country’s ambitions of becoming a self-reliant global power (Source: moneycontrol)

The Numbers Tell The Defense Trade Growth

India’s defense exports in FY25 reached an all-time high of Rs 23,622 crore, reflecting a 12% increase from FY24’s Rs 21,083 crore. The scale of defense trade growth is far more dramatic when seen in a longer arc: from Rs 4,312 crore during the entire decade of 2004-14 to Rs 88,319 crore in the decade from 2014 to 2024, a 21-fold increase. The Ministry of Defense now targets Rs 30,000 crore in FY26 and has set a visionary goal of touching Rs 50,000 crore in exports by 2029.

Financial Year	defense Exports (₹ Crore)	Key Highlights
FY14	686	Base year of comparison
FY24	21,083	12% YoY growth from FY23
FY25	23,622	All-time high exports, exports to 100+ countries
FY26 (Target)	30,000	Government target for the current fiscal year
FY29 (Target)	50,000	Defense Exports (₹ Crore)

What Enabled This Growth? A Policy-Driven Revolution

Experts point to robust policy measures and structural reforms that have created a favourable environment for defense trade, especially exports. These include:

• Simplified Industrial Licensing Procedures: The process for obtaining defense production licences has been significantly eased, attracting more private players.
• Removal of Parts and Components from the Licensing Regime: This reform allowed a broader range of products to be manufactured and exported without bureaucratic delays.
• Open General Export License (OGEL): Introduced in 2021, the OGEL is a one-time export approval for specific items and destinations, eliminating the need for repetitive clearance.
• Revised Standard Operating Procedures (SOPs): The SOPs for exporting military stores were updated to ensure faster processing and approval.
• Digital Transformation: A dedicated portal by the Department of Defense Production has streamlined the application and tracking process. In FY25, 1,762 Export Authorisations were issued, compared to 1,507 in FY24 – a 16.92% growth. (Source: www.moneycontrol.com)

Private Sector Leads, DPSUs Catch Up

India’s defense trade ecosystem is increasingly being driven by private innovation, backed by the public sector legacy:

• In FY25, private companies contributed Rs 15,233 crore, maintaining their dominant share.
• DPSUs clocked Rs 8,389 crore in exports – a 42.9% increase over FY24’s Rs 5,874 crore.

This complementary growth underscores the maturing defense industrial base, where both arms collaborate and compete globally. (Source: www.moneycontrol.com)

What Is India Exporting? From Rifles to Missiles

India’s defense export portfolio has evolved significantly, from basic gear to complex, high-tech systems. Some key exported items include:

• Bulletproof Jackets and Armoured Vehicles
• Lightweight Torpedoes
• Chetak Helicopters and Dornier Do-228 Aircraft
• Fast Interceptor Boats
• Tear Gas Launchers and Night Vision Equipment
• Weapons Locating Radar and High Frequency Radios
• Ballistic Missiles like BrahMos, K4, and K15

“Over the years, we’ve mastered every technology required for modern warfare and futuristic technologies. The future of warfare lies in artificial intelligence, and India is well-equipped to produce such systems,” says Dr. Ravi Gupta, former director of DRDO. (Source: www.moneycontrol.com)

Global Reach: 100+ Countries and Counting

India now exports defense equipment to over 100 countries across the globe. The USA, France, and Armenia are currently among the top buyers. Demand is also rising in Southeast Asia, Latin America, and parts of Africa, where Indian systems are considered reliable and cost-effective.

According to the Ministry of Defense, defense items were exported to around 80 countries in FY25 alone. This reflects growing geopolitical confidence in Indian military manufacturing.

Major Platforms Identified for Export

A report by Elara Capital revealed that India has identified 160 platforms and systems for export to “friendly countries,” which include:

• 19 Aeronautical Systems
• 41 Armament and Combat Systems
• 4 Missile Systems
• 28 Naval Systems
• 27 Electronic and Communication Systems
• 10 Life Protection Items
• 16 Nuclear, Biological, and Chemical Equipment

These products are showcased in major international expos in Sri Lanka, the UAE, Bahrain, and Singapore, boosting their visibility and marketability.

India’s Growing Role in the Global Supply Chain

The increase in the number of registered defense exporters, which rose by 17.4% in FY25, signals a broader participation in the global defense value chain. Indian firms are now exporting finished goods and becoming part of larger international systems as component and subsystem suppliers.

The DPSUs, once perceived as sluggish, have also adapted to market-oriented models, contributing significantly to the export surge. (Source: www.moneycontrol.com)

Strategic Impact and Soft Power Projection

India’s rise as a defense exporter has significant diplomatic and strategic implications. By exporting to friendly nations, India gains economically and deepens defense ties and strategic trust. The arms exports act as soft power tools, enhancing India’s stature as a credible, stable defense partner.

Looking Ahead: The Road to Rs 50,000 Crore

With a strong foundation and a clear roadmap, India is well-positioned to achieve its goal of Rs 50,000 crore in exports by FY29. To sustain this growth, the following focus areas are crucial:

• Continued policy support and procedural simplification
• Investments in R&D and advanced technologies like AI, robotics, and cybersecurity
• Enhanced global marketing and participation in defense expos
• Leveraging the India-Middle East-Africa trade corridors
• Increasing collaborations and joint ventures with friendly nations

From Importer to Innovator

India’s defense export journey is a shining example of what sustained policy reforms, industrial collaboration, and technological innovation can achieve. As the world looks for cost-effective, reliable, and advanced defense solutions, “Made in India” is emerging as a global trust brand. India is not just guarding its borders – it is enabling others to secure theirs.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs