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India’s Defence Exports in 2026: Is It a Global Hub?

India’s defence exports are growing, but Ministry of Defence export values and SIPRI’s major-arms transfer rankings measure different things. Here is what the latest figures show.
From TheFinanceBase Team4 min to read
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India is an expanding defence-export hub, but the available figures do not establish it as one of the world’s largest arms exporters. The Ministry of Defence reported exports of ₹38,424 crore for FY 2025–26 in an August 2026 release. That is a government-reported export-value figure; it is not the same measure as the international transfer volumes used by the Stockholm International Peace Research Institute (SIPRI) to compare major-arms suppliers.

How much does India export in defence?

The Ministry of Defence reported ₹38,424 crore in defence exports for FY 2025–26 in a release dated 28 August 2026. The figure is an official Indian export-value measure for the fiscal year, which runs from April to March.

For the preceding year, the Ministry reported ₹23,622 crore in FY 2024–25, up 12.04% from ₹21,083 crore in FY 2023–24. The Ministry’s release put the FY 2024–25 figure at approximately US$2.76 billion. These are reported values, not a count of platforms or a measure of their share of global arms transfers.

What do the different defence figures measure?

“Defence exports” can refer to unlike things: the value of goods reported as exported, production inside India, approvals to export, or international transfers of major weapons. They should not be combined into a single growth or ranking claim.

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Measure Period and reported figure What it tells you
Indian government export value ₹23,622 crore in FY 2024–25; ₹38,424 crore in FY 2025–26, as reported by the Ministry of Defence Value reported as defence exports under the Ministry’s measure. The fiscal years are April–March.
Export authorisations 1,762 in FY 2024–25, compared with 1,507 in FY 2023–24, according to the Ministry of Defence Approvals to export, not proof of completed sales, deliveries or export value.
Defence production ₹1,27,434 crore in FY 2023–24, according to a Ministry of Defence backgrounder Domestic production, not exports. It indicates industrial scale but does not show how much output was sold abroad.
SIPRI major-arms transfer volume Global volume was 9.2% higher in 2021–25 than in 2016–20, according to SIPRI’s March 2026 fact sheet A volume-based comparison of transfers of major arms between states, not a rupee-value tally of all defence-related exports.

Because the Ministry and SIPRI cover different periods and categories, the rupee figures cannot be used to calculate India’s SIPRI rank or share. SIPRI reported that the United States accounted for 42% of global major-arms exports by transfer volume in 2021–25. Its cited summary does not give a comparable India-specific rank or share.

What does India export?

The Ministry describes the FY 2024–25 portfolio as including ammunition, arms, systems, subsystems, parts and components. A government backgrounder also names bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats and lightweight torpedoes as examples.

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The examples show that the portfolio spans different types of equipment; they do not establish the export value of any one item or show that each is a major export by value. India’s production base is broader than its export list: the Ministry backgrounder also describes domestically produced platforms such as the Dhanush artillery system, ATAGS, the Arjun tank, Tejas light combat aircraft, the Akash missile system, radars, aircraft and naval vessels.

Who buys Indian defence equipment?

A PIB factsheet says India exported defence equipment to more than 100 nations and identifies the United States, France and Armenia as the top destinations in FY 2023–24. That ranking is specific to that fiscal year. It does not establish the leading buyers in FY 2025–26, nor does the cited statement provide each destination’s share of export value.

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What supports India’s growth as an export hub?

A larger domestic production base

The Ministry of Defence reported production of ₹1,27,434 crore in FY 2023–24, compared with ₹46,429 crore in FY 2014–15. Production growth is relevant industrial context: it signals a larger domestic manufacturing base, but it is not itself evidence that the same value was exported.

Public- and private-sector exporters

In FY 2024–25, the Ministry attributed ₹15,233 crore of reported exports to private firms and ₹8,389 crore to defence public-sector undertakings (DPSUs). DPSU exports rose 42.85% year over year, while private-sector exports were broadly flat by the reported figures. The Ministry also reported a 17.4% increase in the number of exporters that year.

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Policy and export procedures

The PIB factsheet describes the Defence Acquisition Procedure 2020 as prioritising the Buy Indian–Indigenously Designed, Developed and Manufactured (IDDM) category. It also outlines export-licensing simplification, longer industrial-licence validity, foreign direct investment provisions and support for domestic innovation. A Ministry release in August 2026 specifically noted changes to export standard operating procedures and the Open General Export Licence (OGEL) framework. These measures provide policy and process context; the cited releases do not quantify how much any individual reform caused export growth.

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Can India meet its ₹50,000 crore export target by 2029?

The Ministry of Defence stated a target of ₹50,000 crore in defence exports by 2029. It is a government target, not a forecast or an achieved result. The FY 2025–26 reported figure of ₹38,424 crore is below that target, but comparing the two does not establish whether India is on track: the cited material does not specify a yearly path to the target or a forecast for the remaining period.

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Export authorisations can help indicate activity in the approval pipeline, but they should not be added to exports or treated as completed sales. To judge progress, compare future reported export values with the target using the same government measure and note any revisions or changes in reporting.

So, is India a global defence-export hub?

“Growing” or “emerging defence-export hub” is supported by the reported increase in export value, the range of products described by the Ministry, exports to more than 100 nations, and the presence of both private firms and DPSUs in the FY 2024–25 totals. Calling India one of the largest global arms exporters would require a comparable international ranking that these figures do not provide. SIPRI’s major-arms transfer measure is narrower than a full account of defence-related goods, parts, services and approvals, and its cited March 2026 summary does not state India’s supplier share or rank for 2021–25.

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