India’s Defence Exports 2025

April 2, 2025

In the Financial Year 2024-25, India achieved milestone in defence exports, reaching ₹23,622 crore. This represents a growth of 12.04% from the previous year. The surge is attributed to increased sales of artillery shells, guns, and small arms. The growth reflects India’s expanding role in the global defence market.

Growth in Defence Exports

India’s defence exports rose by ₹2,539 crore compared to FY 2023-24. The Defence Public Sector Undertakings (DPSUs) experienced a remarkable 42.85% increase in their exports. The private sector contributed ₹15,233 crore while DPSUs contributed ₹8,389 crore to the total.

Export Authorisation and Policy Reforms

The Department of Defence Production issued 1,762 export authorisations in FY 2024-25, up from 1,507 the previous year. This growth of 16.92% indicates a more streamlined process for exporters. Recent policy reforms have simplified licensing procedures and extended the validity of licenses to encourage growth.

International Market Reach

India exported defence products to approximately 80 countries during FY 2024-25. The US, Israel, and Germany emerged as the largest importers of Indian defence systems. This marks shift towards self-reliance in defence production.

Future Targets

Defence Minister Rajnath Singh has set ambitious targets for the future. Aiming for defence exports to exceed ₹30,000 crore in FY 2025-26, the government plans to reach ₹50,000 crore by 2029. The Modi government initially set a target of ₹35,000 crore for aerospace and defence goods over five years.

Impact of Global Conflicts

Ongoing global conflicts, including the Russia-Ukraine war and the Israel-Hamas conflict, have accelerated demand for defence products. Countries are increasingly looking to enhance their military capabilities, providing opportunities for Indian defence manufacturers.

Self-Reliance in Defence Manufacturing

India’s defence strategy has shifted from reliance on imports to focusing on indigenous production. This transition is supported by government initiatives aimed at encouraging a robust domestic defence industry.

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