India’s defence exports have reached an unprecedented ₹38,424 crore in the financial year 2025–26, marking the highest level ever recorded and reflecting a sharp 62.66 percent increase compared with ₹23,622 crore in the previous fiscal year. The growth amounts to an additional ₹14,802 crore and signals a major milestone in India’s ambition to emerge as a significant global defence exporter.
The record figure has been achieved through contributions from both defence public sector undertakings (DPSUs) and the private sector. DPSUs accounted for 54.84 percent of total exports, while private companies contributed 45.16 percent. In monetary terms, defence public sector undertakings exported equipment worth ₹21,071 crore, while private firms recorded exports of ₹17,353 crore.
Defence Minister Rajnath Singh praised the performance of the Department of Defence Production, defence exporters, and other stakeholders for achieving the milestone. He stated that India is steadily moving towards becoming a global manufacturing hub for defence equipment.
Posting on social media platform X, Singh said India was writing an impressive success story in defence exports under the leadership of Prime Minister Narendra Modi. He noted that the country’s export performance reflected the government’s vision of placing India among the leading defence exporters in the world.
Public Sector Leads Sharp Expansion
A major driver of the export growth has been the extraordinary expansion in shipments from the defence public sector undertakings. DPSU exports increased by an impressive 151 percent compared with the previous year. In contrast, private sector exports recorded a 14 percent rise, indicating steady participation and growing capacity within the domestic defence industry.
In the previous financial year, DPSUs had exported equipment worth ₹8,389 crore, while private sector companies had contributed ₹15,233 crore. The new figures show a dramatic shift, with public sector exports more than doubling within a single year.
The overall export performance also highlights the sector’s long-term momentum. Over the past five years, India’s defence exports have almost tripled, reflecting sustained policy push, industry investment, and strengthening global demand for Indian-made defence products.
Expanding Global Footprint of Indian Defence Industry
The surge in exports underscores increasing international acceptance of defence equipment manufactured in India. It also reflects the country’s growing integration into global defence supply chains, both as a supplier of complete systems and as a trusted partner for subsystems and components.
India is currently exporting defence equipment to more than 80 countries, indicating a broad international footprint for its defence manufacturing ecosystem. The number of exporters has also increased significantly. In the latest financial year, the number of defence exporters rose by 13.3 percent from 128 to 145.
Government reforms aimed at improving the ease of doing business have played a critical role in enabling this expansion. The Department of Defence Production has streamlined regulatory procedures for defence exports and introduced a new online portal to simplify approvals. Standard operating procedures for authorisation processes have also been simplified to make exports faster and more efficient.
These measures have helped create a performance-driven and globally competitive defence industry, positioning India as a rapidly emerging player in the international defence manufacturing landscape.