🗞️ Why in News India’s defence exports reached an all-time high of ₹38,424 crore in FY 2025-26, growing 62.66% over the previous year’s ₹23,622 crore, the Ministry of Defence announced on April 2, 2026. The milestone underscores the success of the Aatmanirbhar Bharat defence manufacturing push.

FY 2025-26 Defence Export Figures

Segment Value (₹ crore) Share Growth
DPSUs (Defence PSUs) 21,071 54.84% +151%
Private Sector 17,353 45.16% +14%
Total 38,424 100% +62.66%

Major Export Items

DPSUs:

  • Munitions, artillery shells, and fuses (Bharat Dynamics Ltd., Ordnance Factory Board successors)
  • Lightweight torpedoes (NSTL/DRDO-designed; BDL manufactured)
  • Radars and electronic warfare equipment (BEL)
  • Offshore patrol vessels and fast attack craft (Goa Shipyard, GRSE)

Private Sector:

  • Armoured vehicles and mine-protected vehicles (Tata Advanced Systems, BEML)
  • Small arms and personal protection (PLR Systems, MKU Ltd.)
  • Bulletproof jackets, CBRN protection suits
  • Drones/UAVs (ideaForge, Alpha Design Technologies)
  • Aircraft components and MRO (Mahindra Defence, TASL)

India’s Defence Export Journey

FY Defence Exports (₹ crore)
2016-17 ~1,941
2018-19 ~10,746
2020-21 ~13,000
2022-23 ~16,000
2023-24 ~21,083
2024-25 ~23,622
2025-26 38,424

The government has a target of ₹50,000 crore in defence exports by 2028-29.

Policy Framework Driving Exports

1. Defence Acquisition Procedure (DAP) 2020

  • Replaced DPP 2016; emphasises “Make in India” and IDDM (Indigenously Designed, Developed, Manufactured) categories
  • Higher scoring for export potential in vendor selection

2. Positive Indigenisation Lists

  • 509 items across three lists cannot be imported by MoD; must be procured domestically
  • Creates domestic manufacturing base that also enables exports

3. Export Promotion Initiatives by DDP

  • Department of Defence Production (DDP) under MoD maintains a dedicated “Export Promotion Cell”
  • Fast-track government-to-government (G2G) export clearances
  • Defence attaché network at Indian embassies assists in export facilitation

4. Industrial Licensing Reforms

  • Automatic route for FDI up to 74% in defence manufacturing; government route beyond
  • DPIIT licences granted for 300+ defence manufacturing entities

Key Export Destinations

India exports to:

  • USA (electronic warfare components, radar subsystems)
  • France (aerospace components for Airbus through HAL)
  • Southeast Asia (patrol vessels, helicopters)
  • Africa and West Asia (armoured vehicles, small arms)
  • Armenia (Pinaka multi-barrel rocket launchers — ₹2,100 crore contract)
  • Philippines (BrahMos supersonic cruise missiles — landmark 2022 deal: $375 million)

BrahMos as Flagship Export

  • BrahMos Aerospace (DRDO + Russia’s NPO Mashinostroyeniya) — supersonic cruise missile
  • Philippines deal (2022): First export to Southeast Asia; $375 million
  • Range: up to 290 km (naval); Extended range up to 450 km in development
  • Enquiries from: Indonesia, Vietnam, Saudi Arabia, Egypt

DPSUs: Record Growth Analysis

DPSUs’ 151% growth is partly attributable to:

  • Bharat Dynamics Ltd. (BDL): Missiles and lightweight torpedoes
  • BEML: Speciality vehicles (metro rail coaches for export too, but primarily defence vehicles)
  • Hindustan Aeronautics Ltd. (HAL): ALH Dhruv helicopters, HTT-40 trainer components to friendly countries
  • Garden Reach Shipbuilders (GRSE): Fast Patrol Vessels to Mauritius, Sri Lanka

UPSC Relevance

GS Paper 3 — Security and Economy

  • Aatmanirbhar Bharat in defence: achievements and targets
  • Defence exports as a component of India’s trade strategy
  • Role of DPSUs vs private sector in defence manufacturing
  • BrahMos: significance in strategic partnerships

GS Paper 2 — IR

  • Defence diplomacy: arms exports as a tool of foreign policy
  • India-Philippines, India-Armenia defence ties

Mains Question

“India’s rising defence exports reflect both economic achievement and strategic intent. Critically analyse the drivers and challenges.” (250 words)

📌 Facts Corner — Knowledgepedia

India Defence Exports FY 2025-26:

  • Total: ₹38,424 crore (all-time high)
  • Growth: +62.66% vs FY24-25 (₹23,622 crore)
  • DPSUs: ₹21,071 crore (+151%); Private: ₹17,353 crore (+14%)
  • Announced: April 2, 2026 by Ministry of Defence

Export Target: ₹50,000 crore by 2028-29

FY 2016-17 base: ₹1,941 crore → 20x growth in a decade

Key exports: Torpedoes, munitions, armoured vehicles, small arms, UAVs, radars

BrahMos:

  • DRDO + Russia (NPO Mashinostroyeniya); supersonic cruise missile
  • Philippines: $375 million deal (2022) — first export to SE Asia

Policy drivers:

  • DAP 2020; Positive Indigenisation Lists (509 items in 3 lists)
  • DDP Export Promotion Cell; FDI: 74% auto, beyond via govt route

Sources: Ministry of Defence, PIB, The Print