India has achieved a remarkable milestone in its defence exports, reaching a historic high of Rs 38,424 crore for the financial year 2025-26. This represents a notable increase of 62.66 per cent from the previous fiscal year, when exports totalled Rs 23,622 crore, as per official figures released by the government.

The substantial growth of Rs 14,802 crore is a testament to India’s expanding foothold in the global defence market, with exports now penetrating more than 80 nations, including prominent countries such as Israel and the United States. The latter are currently involved in military operations against Iran, which underscores the strategic significance of India’s defence manufacturing capabilities.

Over the past five years, the trajectory of India’s defence exports has shown a nearly threefold increase, indicating a robust and sustained demand for Indian military equipment in international markets.

Contribution of Defence Public Sector Undertakings and Private Sector

Defence Public Sector Undertakings (DPSUs) have played a pivotal role in this growth, with their exports surging by 151 per cent year-on-year from Rs 8,389 crore to Rs 21,071 crore. This notable performance highlights the increasing capabilities of state-owned enterprises in meeting both domestic and international demand for defence products.

The private sector also exhibited positive results, with exports climbing by 14 per cent to reach Rs 17,353 crore, up from Rs 15,233 crore in the previous financial year. Collectively, DPSUs accounted for 54.84 per cent of overall exports, while private organisations contributed approximately 45.16 per cent, demonstrating a collaborative effort between public and private entities in enhancing India’s defence export landscape.

The growth in the number of registered defence exporters also reflects this upward trend, with the figure rising from 128 in the previous fiscal year to 145 in FY26, marking an increase of 13.3 per cent. This expansion points to a diversifying base of exporters committed to participating in the defence sector.

Government Support and Future Prospects

Defence Minister Rajnath Singh has praised these developments, referring to them as an “impressive success story” under the leadership of Prime Minister Narendra Modi. In a social media statement, he attributed this accomplishment to the joint efforts of the Department of Defence Production, various exporters, and industry stakeholders.

Singh articulated that the significant rise in defence exports reflects not only the growing global confidence in India’s indigenous capabilities but also highlights the nation’s advanced manufacturing strengths. Furthermore, he emphasized the importance of a collaborative atmosphere in the pursuit of a self-reliant defence ecosystem.

Officials have indicated that ongoing policy support and reforms aimed at simplifying the business environment have significantly contributed to this growth. The Department of Defence Production has implemented a more efficient online portal for export procedures and streamlined standard operating processes for authorisations, ultimately facilitating quicker clearances and enhancing the competitive landscape for Indian defence manufacturers.

Looking ahead, experts anticipate that the sustained momentum in both public and private sectors will bolster India’s defence export trajectory. This indicates a continuing commitment to self-reliance and an increasing presence in the global arms market, positioning India as a key player in international defence supply chains.

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