India also 2nd largest importer of weapons

Export of defence equipment, items and systems touched an all-time high of Rs 38,424 crore in the financial year 2025-26, amounting to a rise of Rs 14,802 crore (62.66 per cent), over the previous fiscal’s exports of Rs 23,622 crore.

Defence public-sector undertakings (DPSUs) and the private sector have contributed 54.84 per cent and 45.16 per cent, respectively, to the exports, the Ministry of Defence said on Thursday.

The growth in defence exports has happened even as India continues to be the world’s second-largest importer of weapons. It accounted for 8.3 per cent of global arms sales for a five-year block (2021-2025), according a report titled, Trends in International Arms Transfers, 2025, released last month by international think-tank, Stockholm International Peace Research Institute (SIPRI).

On Thursday, Defence Minister Rajnath Singh lauded the export performance and added that India was marching ahead towards becoming a global manufacturing hub for defence equipment.

Defence PSUs’ exports surged by 151 percent in comparison to the previous year, while private firms also recorded an increase of 14 percent. In terms of value of contribution, the private sector accounted for Rs 17,353 crore worth of defence exports, while DPSUs contributed Rs 21,071 crore. Their respective figures in the previous financial year stood at Rs 15,233 crore and Rs 8,389 crore.

The figure indicates an increase by around three times in the last five years. The Ministry of Defence said, “The rise in exports highlights the increasing global acceptance of Indian-made defence products and the sector’s growing integration into the international supply chains.”

India is exporting defence equipment to more than 80 countries as of FY2025-26, while the number of Indian exporters has reached 145.