India’s defence exports have recorded a significant rise, reaching an all-time high of ₹38,424 crore in the financial year 2025–26. This marks a sharp increase of 62.66 per cent compared to ₹23,622 crore in the previous fiscal year. The jump of ₹14,802 crore reflects a steady and consistent growth in India’s defence sector, highlighting its expanding role in the global arms market.

The rise in exports comes as India continues to strengthen its presence across international markets. The country is now supplying defence equipment to more than 80 nations. Among these are Israel and the United States, both of which are currently involved in a military campaign against Iran in the Middle East. Over the past five years, India’s defence exports have nearly tripled, showing a clear upward trend and growing global demand for Indian-made defence products.

A major part of this growth has been driven by Defence Public Sector Undertakings (DPSUs). Their exports saw a massive increase of 151 per cent, rising from ₹8,389 crore in FY25 to ₹21,071 crore in FY26. This sharp growth indicates the strong performance of public sector units in expanding India’s defence export capabilities. At the same time, the private sector also contributed steadily to this progress. Private companies recorded a 14 per cent increase in exports, reaching ₹17,353 crore compared to ₹15,233 crore in the previous year.

In terms of overall contribution, DPSUs accounted for 54.84 per cent of total defence exports, while private sector firms made up 45.16 per cent. This balance shows a collaborative effort between public and private players in strengthening India’s defence ecosystem. The combined performance of both sectors has played a key role in achieving this record milestone.

The number of registered defence exporters in the country has also grown. In FY26, the total number reached 145, up from 128 in the previous fiscal year. This marks an increase of 13.3 per cent, indicating rising participation from companies in the defence export space. The growth in exporters reflects improved opportunities and a supportive environment for businesses in this sector.

Defence Minister Rajnath Singh praised this achievement and described it as an “impressive success story” under Prime Minister Narendra Modi’s leadership. He highlighted that India is steadily moving towards becoming a global manufacturing hub for defence equipment. He credited this progress to the joint efforts of the Department of Defence Production, exporters, and industry stakeholders.

"This big jump of Rs 14,802 crore in defence exports reflects the growing global trust in India’s indigenous capabilities and advanced manufacturing strength. With DPSUs contributing 54.84 per cent and private industry 45.16 per cent, this milestone showcases the power of a collaborative and self-reliant defence ecosystem," the Defence Minister said.

The strong growth in defence exports also points to increasing global acceptance of Indian defence products. It shows that India is becoming more integrated into international supply chains. As more countries turn to India for defence equipment, the country’s position in the global market continues to strengthen.

Officials have attributed this rise to consistent policy support and reforms introduced by the government. Efforts have been made to improve the ease of doing business in the defence sector. The Department of Defence Production has played a crucial role by streamlining export procedures. A revamped online portal and simplified standard operating processes for authorisations have helped in faster approvals and reduced delays. These measures have made Indian defence companies more competitive in the global market.

Experts believe that the current momentum in both public and private sectors will continue in the coming years. With strong policy backing and growing international demand, India is expected to further expand its defence exports. The progress also aligns with the country’s broader goal of achieving self-reliance in defence production while increasing its footprint in the global arms industry.

Overall, the record growth in defence exports highlights a major shift in India’s capabilities and ambitions. It reflects a steady move towards becoming a key player in the global defence market while building a strong and self-sufficient defence manufacturing ecosystem.