INDIAN DEFENCE EXPORTS IN A GLOBAL CONTEXT

The rise in India’s defence exports is significant from a local perspective but pale into comparative insignificance in the global context. It will take a lot of doing to find a firm foothold in this market by not only smoothing the rough edges in the country's approach to defence exports but also by devising focused and realistic policies aimed at promoting the export of high-value products, argues AMIT COWSHISH

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India's defence exports have grown exponentially from a measly ₹1,941 crore in 2014-15 to ₹23,622 crore in 2024-25. This surge is being driven by a vibrant private sector comprising over 430 licensed companies and approximately 16,000 MSMEs (Micro, Small and Medium enterprises), which contributed ₹15,233 crore to the export kitty last financial year, surpassing the combined revenue of ₹8,389 crore earned by 16 Defence Public Sector Undertakings (DPSUs).

It would be ungracious to deny credit to the government for this stupendous accomplishment. But for the steps taken by it in the past decade to promote exports, the defence industry would have found it very difficult, if not impossible, to ramp up the export of locally manufactured products. Going by the current trend, the target of earning ₹50,000 crore in defence exports by 2029 looks eminently within reach.

In its Press Release of April 1, 2025, the Ministry of Defence (MoD) claimed that this phenomenal increase in defence exports reflects the growing acceptability of Indian products in the global market and the ability of the Indian defence industry to be a part of the global supply chain. This is a fair assessment of what the growing exports signify, but it sounds vainglorious when the MoD also proclaims that this development reinforces India's role as a global defence manufacturing hub, implying that exports will propel domestic defence production.