Defense Exports by India Increase Dramatically Over the Last Decade, According to Rajnath Singh
New Delhi: Defense Exports Soaring to New Heights
India's defense exports have skyrocketed, boasting a staggering 34-fold increase over the past decade. According to Defence Minister Rajnath Singh's office, defense goods worth Rs 23,622 crore were exported in 2024-25, as against just Rs 686 crore in 2013-14. This growth spurt is a testament to India's burgeoning defense sector, driven by the spirit of Atmanirbhar Bharat (self-reliant India).
The government's strategic plans, such as the production-linked incentive (PLI) in various sectors, have played a pivotal role in making Indian manufacturers globally competitive, attracting investments, ramping up exports, integrating India into the global supply chain, and curtailing dependence on imports.
With the government's aggressive push for the Make in India initiative, defense production has reached unprecedented highs. Consequently, investors in major defense manufacturing Public Sector Undertakings (PSUs) have reaped substantial returns over the years.
The government is heavily investing in defense and aerospace manufacturing, with several defense hubs in the works. Noteworthy, numerous global companies have expressed a willingness to share critical defense and aerospace knowledge with India.
A broad array of items, including ammunition, arms, subsystems/systems, and parts and components, was shipped to approximately 80 nations during the recently concluded financial year, as per Ministry of Defence data. The government now targets annual exports worth Rs 50,000 crore by 2029, thereby bolstering its international standing.
Recent tensions with Pakistan have fueled Indian defense sector stocks, which have been on a tear over the past few weeks. The successful demonstration of India's homegrown systems against the adversary last week further bolstered defense stocks backing.
The recent conflict with Pakistan underscores the importance of achieving self-reliance in defense manufacturing. The Nifty India Defence index has surged more than 30 per cent over the past three months, reflecting investor confidence in India's domestic defense sector's strategic significance and commercial growth potential.
The growth in indigenous defense manufacturing has yielded considerable gains for investors in major defense manufacturing PSUs over the past few years. By capitalizing on domestic production scale and experience and navigating protectionist measures, India aspires to claim a coveted spot as a top global defense exporter.
Key Factors:1. Government initiatives, like Make in India, have catalyzed defense exports by cultivating self-reliance, reducing foreign reliance, and boosting exports.2. Global geopolitical turmoil and protectionist measures have presented challenges but also created opportunities for India to establish itself as a trustworthy defense supplier.3. India's engineering prowess and customization abilities have fueled its competitive edge in the international defense market.4. Expanding domestic market and a focus on exports have provided the scale and experience needed to establish a global presence.
Government's Future Strategy:- The government is determined to elevate India into a leading global defense manufacturing hub, with greater emphasis on exports.- Policy amendments to streamline export licensing procedures and enhance defense export facilitation are underway to foster expansion in this sector.- The government is committed to strengthening technology transfers, innovation ecosystems, and international collaborations to cater to sophisticated global demands.- Strategic partnerships and joint ventures with foreign defense companies are also on the agenda to extend India's reach in the global market.- The government understands the importance of striking a balance between domestic consumption and export growth, recognizing the potential of defense exports as a crucial source of foreign exchange and strategic clout.
The government's commitment to making India a leading global defense manufacturing hub has seen the collaboration of technology transfers and international partnerships with key players in the industry, particularly in finance and technology sectors (Government's Future Strategy).
In line with the Make in India initiative, the expansion of India's presence in the global defense market extends to other sectors, including general news and sports, showcasing the broader economic implications of defense growth in the country (Government's Future Strategy).
