India’s defence exports achieved a record-breaking performance in FY 2025-26, surging 62.66% year-on-year to reach ₹38,424 crore. The unprecedented growth reflects the country’s expanding role in the global defence manufacturing ecosystem and the success of initiatives aimed at boosting indigenous production and exports.
The United States emerged as the largest destination for India’s defence exports, driven by increasing integration of Indian manufacturers into global aerospace and defence supply chains.
US Demand Fuels Growth in Defence Manufacturing
Leading global defence and aerospace companies are increasingly sourcing critical components from India, strengthening bilateral defence-industrial cooperation.
Major international manufacturers, including Boeing and Lockheed Martin, have expanded their engagement with Indian suppliers for the production of high-value aerospace structures and subsystems.
Key components manufactured in India include:
- Apache helicopter fuselages
- F-16 fighter aircraft wings
- Aerospace structural assemblies
- Precision-engineered defence subsystems
- Advanced manufacturing components
The growing participation of Indian companies in global defence supply chains has positioned the United States as India’s most important defence export market.
Defence Public Sector Undertakings Lead Export Surge
The remarkable growth in defence exports was largely driven by Defence Public Sector Undertakings (DPSUs), which recorded an impressive 151% increase in export performance during FY26.
Private-sector defence manufacturers also continued to maintain steady export growth, contributing to India’s expanding international defence footprint.
The combined efforts of public and private enterprises have significantly strengthened India’s position as a reliable supplier of defence equipment and components.
Domestic Reforms Boost Export Competitiveness
India’s defence export success has been supported by a series of policy reforms aimed at encouraging domestic manufacturing, technology development, and international collaboration.
Key Highlights:
- Expansion of the "Make in India" initiative.
- Simplified defence export procedures.
- Increased private sector participation
- Stronger defence-industrial partnerships with global companies.
- Enhanced focus on indigenous manufacturing and innovation.
These measures have improved the competitiveness of Indian defence products in international markets.
India Expands Defence Export Presence Across Global Markets
Beyond the United States, India’s defence exports now reach more than 80 countries worldwide.
The country’s growing export portfolio includes:
- Weapon systems supplied to Armenia.
- Defence electronics exported to France.
- Aerospace components supplied to North America and Europe.
- Military equipment and subsystems delivered to multiple strategic partners.
The diversification of export destinations highlights India’s emergence as an increasingly important player in the global defence industry.
