India's defence exports reached $3.2 billion in FY26, a remarkable achievement for a country that was among the world's largest defence importers just a decade ago. The transformation has been driven by the government's Atmanirbhar Bharat (self-reliant India) initiative in defence, which set ambitious domestic procurement targets and actively promoted Indian defence manufacturers in global markets through government-to-government deals, export credit financing and participation in international defence exhibitions. The defence export target for FY27 is $5 billion, which would place India among the top 15 defence exporters globally.
The product range of Indian defence exports has evolved significantly from simple spares, ammunition and basic equipment to increasingly sophisticated platforms. The BrahMos supersonic cruise missile, jointly developed with Russia, is being procured by the Philippines, Vietnam, Indonesia and several Middle Eastern countries, with the export pipeline exceeding $10 billion in various stages of negotiation. Hindustan Aeronautics Limited's Advanced Light Helicopter Dhruv has been exported to multiple countries in South America and Southeast Asia. The Defence Research and Development Organisation's anti-tank guided missile Nag and Akash surface-to-air missile systems are attracting strong international interest.
Private sector companies have emerged as critical players in India's defence export push. The Tata Group, L&T, Mahindra Defence, Bharat Forge, MTAR Technologies and Data Patterns are among the listed private entities that have secured significant defence export contracts. The government's policy of reducing the number of items on the Negative Import List — which mandates domestic procurement — has forced the private sector to develop genuine indigenous manufacturing capabilities that can now compete internationally in categories ranging from artillery ammunition and infantry weapons to naval ships and military trucks.
The strategic dimensions of India's defence export growth are as significant as the economic ones. By becoming a defence supplier to Southeast Asian, African and Middle Eastern countries, India is building strategic relationships and influence in its extended neighbourhood. The government is using defence exports as a tool of foreign policy in the same way that the United States and France have historically done, creating dependencies and long-term partnerships that transcend individual administrations. The Indian Air Force's Tejas Light Combat Aircraft has received strong international interest and an export order from Malaysia appears close to finalisation, which would be a landmark for India's indigenous fighter aircraft programme.
The domestic defence procurement push that underpins the export success has also created significant industrial capacity and employment in India. Defence industrial corridors in Uttar Pradesh and Tamil Nadu are attracting investment from over 300 companies, with anchor investments from L&T, Tata, Adani Defence and Mahindra. The indigenous content requirement in major defence contracts has risen from under 20% a decade ago to over 60% today, with targets to reach 80% by 2030. This deepening of the domestic defence industrial base — combined with growing export competitiveness — positions India as a genuine defence manufacturing power in the emerging multipolar world order.
