Major Milestone for India’s Defence Sector as USA and France Purchase Indian Arms

India is now exporting defence equipment to more than 100 countries, including the United States and France, with exports reaching a record ₹38,424 crore. This achievement reflects the impact of government reforms and a strong focus on indigenous manufacturing, positioning India as an emerging global defence exporter.

India has achieved a new milestone in defence exports, reaching a record ₹38,424 crore in the financial year 2025–26. This marks the highest level of defence exports in the country’s history.

According to the latest data, this represents a significant increase of approximately 62.66% compared to the previous financial year. Defence Minister Rajnath Singh expressed his satisfaction over this achievement, stating that the impressive growth reflects the growing global trust in India’s indigenous defence capabilities and manufacturing strength.

The export performance highlights a balanced contribution from both public sector undertakings and private companies. Defence public sector enterprises accounted for about 54.84% of the total exports, while the private sector contributed 45.16%, demonstrating the rapid development and collaborative nature of India’s defence ecosystem.

India’s domestic defence production has also witnessed remarkable growth over the years. In the financial year 2014–15, indigenous defence production stood at ₹46,429 crore, which has increased to ₹1,27,434 crore in 2023–24, reflecting a growth of nearly 174%.

Experts attribute this growth largely to government policies aimed at promoting self-reliance in defence manufacturing. Over the past decade, the country’s defence budget has also seen consistent expansion, rising from ₹2.53 lakh crore in 2013–14 to ₹6.81 lakh crore in 2025–26.

The government has also introduced several reforms to reduce dependence on defence imports and strengthen domestic manufacturing. Initiatives promoting ease of doing business and indigenous production have provided strong momentum to the sector.

Currently, India exports defence equipment to more than 100 countries, including major nations such as the United States, France, and Armenia, highlighting India’s growing influence in the global defence market.

In terms of production share, public sector enterprises account for about 77%, while the private sector contributes around 23%. However, the participation of private companies is steadily increasing, indicating further expansion in the sector.

Looking ahead, the government has set an ambitious target to increase defence manufacturing to ₹3 lakh crore and defence exports to ₹50,000 crore by 2029.

Overall, India is rapidly moving toward greater self-reliance in defence production while simultaneously establishing itself as a strong and reliable player in the global defence industry.