India’s defence exports surge to ₹23,622 crore, marking shift from importer to exporter

By Admin

03 Nov, 2025

India’s defence sector has undergone a remarkable transformation over the past two decades, evolving from being one of the world’s largest importers of defence equipment to an emerging global exporter. This monumental shift highlights India’s growing self-reliance, indigenous innovation, and strengthened industrial ecosystem in the field of defence manufacturing.

From Import Dependence to Domestic Production

G Satheesh Reddy, Member of the National Security Advisory Board (Government of India), emphasized the nation’s progress during his address at the Hyderabad Entrepreneurship Summit organized by The Indus Entrepreneurs (TiE Hyderabad Chapter). He reflected on how, 20–25 years ago, India produced very few defence components domestically, relying heavily on foreign imports. “Most of the things required by the defence sector were mostly imported. The defence sector used to spend 90 per cent of the capital expenditure on imports,” he said.

Capital Expenditure Largely Sourced Domestically

This scenario has changed dramatically. Today, India’s Defence Budget stands at ₹6.81 lakh crore, out of which ₹1.75 lakh crore is allocated for capital expenditure. Remarkably, ₹1.50 lakh crore of this was spent domestically in the last financial year. “The target given for the next year is ₹1.75 lakh crore, and by 2029, we aim to reach ₹3 lakh crore,” Reddy noted, underlining the country’s focus on indigenization.

Record-Breaking Export Growth

India’s defence exports have reached a historic high of ₹23,622 crore, reflecting a strong upward trajectory in the global defence market. The government has set an ambitious target of ₹50,000 crore in defence exports over the next two years. This milestone signifies a fundamental shift in India’s strategic and industrial outlook moving from a net importer to an emerging defence exporter.

Expanding Ecosystem of Defence Manufacturing

The growing domestic ecosystem is driven by collaboration between the public and private sectors. “Private industries are producing a wide variety of defence products, including missiles. It is not just the public sector; the private sector, too, is playing a significant role. Both sectors are expanding,” Reddy highlighted. Currently, India has over 2,000 tier 1 and tier 2 companies contributing to the defence industry, supported by over 20,000 tier 1, 2, and 3 companies in the indigenous manufacturing sector.

Start-ups and MSMEs Powering Innovation

Chandrika Kaushik, Director General (Production Coordination & Services Interaction) at DRDO, emphasized the importance of innovation-driven participation. She encouraged start-ups and micro, small, and medium enterprises (MSMEs) to join the defence supply chain and actively engage in research, design, and manufacturing processes. Their inclusion, she noted, will help accelerate technological advancements and strengthen India’s position in global defence manufacturing.

A Future of Self-Reliance and Export Leadership

India’s defence sector is no longer just about self-sufficiency it is about global competitiveness. With indigenous production scaling up, private sector participation increasing, and innovation from start-ups gaining momentum, the nation is on a path to become a significant exporter of defence technology and equipment.

The surge in defence exports to ₹23,622 crore is not just a statistic it is a symbol of India’s strategic autonomy, industrial strength, and vision for Atmanirbhar Bharat in the defence sector.