India’s defense exports in the fiscal year 2025-26 hit a record high of Rs 38,424 crore, showing a significant 62.66% surge from Rs 23,622 crore in the previous year, as per official government figures. The increase of Rs 14,802 crore signifies a continuous growth in outbound defense shipments to more than 80 nations, including Israel and the United States, involved in a military operation in the Middle East against Iran. Over the past five years, exports have nearly tripled, indicating a consistent expansion of India’s presence in the global defense market.
The growth was largely driven by Defense Public Sector Undertakings (DPSUs), with exports surging by 151% year-on-year to Rs 21,071 crore from Rs 8,389 crore in FY25. The private sector also saw steady progress, with exports rising by 14% to Rs 17,353 crore from Rs 15,233 crore in the previous year. DPSUs accounted for 54.84% of the total exports, while private companies contributed 45.16%.
The number of registered defense exporters climbed to 145 in FY26, up from 128 in the preceding fiscal year, marking a 13.3% rise, according to the government data. Defense Minister Rajnath Singh commended the performance as an “impressive success story” under Prime Minister Narendra Modi’s leadership.
Singh highlighted on social media that India is moving towards becoming a global manufacturing hub for defense equipment, attributing this achievement to the collaborative efforts of the Department of Defense Production, exporters, and industry stakeholders. The Defense Minister emphasized the significance of the substantial increase in defense exports, indicating the growing global confidence in India’s domestic capabilities and advanced manufacturing prowess.
The significant upsurge in exports underscores the increasing global recognition of Indian defense products and the nation’s deepening integration into international supply chains. With defense equipment now being exported to more than 80 countries, India’s position in the global market is further bolstered.
Officials credited the growth to consistent policy backing and reforms aimed at enhancing ease of doing business. The Department of Defense Production has streamlined export processes through an updated online platform and simplified standard operating procedures for authorizations, facilitating quicker clearances and enhancing industry competitiveness.
Experts observe that with robust momentum in both public and private sectors, India’s defense export trajectory indicates a sustained drive towards self-sufficiency and a broader presence in the global arms market.