Tuesday, 29 Apr, 2025
The figure achieved in 2024-25 also reflects a 21.26 percent shortfall from the Rs 30,000 crore target set for the year. Image Source: IANS
In terms of contributions, the private sector accounted for Rs 15,233 crore, while DPSUs contributed Rs 8,389 crore to the total defence export figures for 2024-25.
India's defence exports reached an all-time high of Rs 23,622 crore (approximately US$ 2.76 billion) in the 2024-25 financial year, marking a notable increase of Rs 2,539 crore, or 12.04 percent, compared to the previous year's total of Rs 21,083 crore. Defence Public Sector Undertakings (DPSUs) saw a remarkable surge in exports, rising by 42.85 percent over the past year. This growth underscores the expanding global demand for Indian-made defence products and highlights the country's growing role in the international defence supply chain. In terms of contributions, the private sector accounted for Rs 15,233 crore, while DPSUs contributed Rs 8,389 crore to the total defence export figures for 2024-25. By comparison, the previous year saw the private sector contribute Rs 15,209 crore and DPSUs Rs 5,874 crore.
The figure achieved in 2024-25 also reflects a 21.26 percent shortfall from the Rs 30,000 crore target set for the year.
The Ministry of Defence, in a recent statement, highlighted that India's defence exports which include a wide array of products such as ammunition, arms, sub-systems, systems, parts, and components were delivered to approximately 80 countries in the just-concluded financial year.
The statement further noted that the Department of Defence Production has implemented a dedicated portal for the application and processing of export authorisation requests. In FY 2024-25, a total of 1,762 export authorisations were issued, marking a 16.92 percent increase from the 1,507 issued in the previous year. Additionally, the number of exporters rose by 17.4 percent during the same period.
India surpassed the Rs 21,000 crore mark for the first time in 2023-24. The Ministry of Defence has set an ambitious target of raising this figure to Rs 50,000 crore within the next five years. Key exports over the past five years include advanced weapon simulators, torpedo loading mechanisms, night vision devices, armored protection vehicles, and coastal surveillance radar, among others. Currently, India exports defence equipment to over 90 countries, though the identities of these nations are not disclosed for strategic reasons. More than 100 Indian firms are actively involved in the export of defence products, with sophisticated systems like the 155 mm Advanced Towed Artillery Guns and Brahmos Missiles among the items being sold abroad.
The United States, Israel, and Germany have emerged as the top importers of defence systems from India.
In recent years, the government has introduced a series of policy reforms aimed at strengthening India's defence industry. These include streamlining the industrial licensing process, removing parts and components from the licensing requirements, and extending the validity period of licences. Furthermore, the standard operating procedure for granting export authorisations has been made more efficient. Additional provisions were also implemented in the previous financial year to further encourage defence exports.
India's Defence Exports (INR Crore)
Source: Department of Defence Production, Ministry of Defence
In order to boost defence exports, the government has also taken a number of steps to enhance the indigenous defence production. The Department of Defence Production (DDP) and the Department of Military Affairs (DMA) have unveiled five Positive Indigenisation Lists (PILs) that cover a wide array of items, including LRUs, assemblies, sub-assemblies, sub-systems, spares, components, and high-end materials. These lists set clear timelines for when procurement will be restricted to domestic manufacturers. By February 2025, more than 3,000 of the over 5,500 listed items have been successfully indigenised. Key technologies developed domestically include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and armoured dozers.
To further boost defence manufacturing, two Defence Industrial Corridors (DICs) have been established in Uttar Pradesh and Tamil Nadu, offering incentives to businesses investing in the sector. Over ₹8,658 crore has already been invested across six nodes in Uttar Pradesh—Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, and Lucknow—and five nodes in Tamil Nadu—Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli. As of February 2025, 253 Memorandums of Understanding (MoUs) have been signed, promising a potential investment of Rs 53,439 crore.
Under the Make in India initiative, India has made significant strides in developing advanced defence platforms, including the Dhanush Artillery Gun System, the Advanced Towed Artillery Gun System (ATAGS), the Arjun Main Battle Tank (MBT), the Light Combat Aircraft (LCA) Tejas, as well as submarines, frigates, corvettes, and the recently commissioned INS Vikrant. These developments highlight the growing strength and capabilities of India's defence sector.
The integration of Industry 4.0 technologies is revolutionizing India's defence manufacturing, improving precision engineering and enhancing operational efficiency. The use of automation and robotics is minimizing human error, while smart factories are enabling real-time monitoring and predictive maintenance. Supported by policies such as the Defence Production and Export Promotion Policy (DPEPP), India’s domestic defence industry is now capable of producing cutting-edge weaponry, aerospace components, and military-grade electronics that meet global standards.
One of the most transformative advances in defence manufacturing is the use of additive manufacturing (3D printing), which significantly shortens lead times for producing critical components like missile casings, UAV parts, and protective gear. This technology facilitates rapid prototyping and design adjustments, allowing India to quickly adapt to evolving security needs while reducing reliance on traditional, time-consuming production processes.
India’s advancements in high-tech manufacturing are also opening new doors for defence exports. By producing top-quality military equipment that meets international standards, India is enhancing its position in global defence markets. The government's target of achieving $5 billion in defence exports by 2025 is further bolstered by the widespread adoption of smart manufacturing practices, positioning India as a trusted defence supplier to allied nations.
