India’s defence exports hit record ₹23,622 crore in FY25, marking 34-fold growth

Team Finance Saathi

    14/May/2025

What's covered under the Article:

  1. India’s defence exports touched ₹23,622 crore in FY25, marking a 34x increase since FY14, showing immense sectoral growth.

  2. Defence Minister Rajnath Singh inaugurated BrahMos missile unit in Lucknow, boosting indigenous missile production.

  3. India aims to achieve ₹50,000 crore defence exports by 2029, already exporting to 80 countries worldwide.

India has achieved a historic milestone in the defence sector, with exports surging to ₹23,622 crore in the financial year 2024–25, a massive jump from just ₹686 crore in 2013–14. This record growth, announced by Defence Minister Rajnath Singh’s office, signifies the impact of the government’s push for self-reliance under the ‘Atmanirbhar Bharat’ initiative.

From ₹686 Crore to ₹23,622 Crore: A Landmark Transformation

According to the Defence Ministry’s post on X (formerly Twitter), India’s defence exports have increased 34 times over the past decade. In 2013–14, exports stood at ₹686 crore. In comparison, the financial year 2024–25 ended with ₹23,622 crore worth of defence-related exports.

This exponential rise reflects the efforts made by the government, defence industry stakeholders, and private firms, all working towards enhancing India’s footprint in the global defence manufacturing ecosystem.

Major Contributors: Private Sector and DPSUs

A crucial element of this export boom has been the active participation of the private sector, along with significant contributions from Defence Public Sector Undertakings (DPSUs).

  • Private sector defence exports stood at ₹15,233 crore in FY25.

  • DPSUs accounted for ₹8,389 crore, reflecting a growth rate of 42.85% from the previous year.

These numbers underscore the importance of collaborative growth between private firms and public enterprises to achieve strategic objectives.

Export Authorisations and Global Reach

The Ministry of Defence highlighted the increase in export authorisations by 16.92% and the number of exporters by 17.4%, suggesting broader industry participation and confidence in international markets.

India is currently exporting defence equipment to nearly 80 countries, showing that Indian-made arms, equipment, and systems have gained global acceptance. The government has also set an ambitious target of reaching ₹50,000 crore in defence exports by 2029.

Rajnath Singh Inaugurates BrahMos Missile Unit in Lucknow

Amid this growing export landscape, Defence Minister Rajnath Singh virtually inaugurated a state-of-the-art BrahMos missile production unit in Lucknow, the capital of Uttar Pradesh.

  • The facility is designed to manufacture around 150 BrahMos missiles annually.

  • The unit is part of India’s Defence Industrial Corridor programme, aimed at transforming regions into manufacturing and innovation hubs for defence production.

Importance of BrahMos in India’s Strategic Arsenal

The BrahMos missile, known for its supersonic speed, precision, and destructive power, has been a cornerstone of India’s military deterrence strategy. According to reports, the weapon system was used during Operation Sindoor to destroy key Pakistani airbases deep inside the country.

By increasing the production of such high-tech weapons, India is positioning itself as not just a user but also a major exporter of advanced defence technologies.

Atmanirbhar Bharat: Driving India’s Defence Growth

The ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative, launched by Prime Minister Narendra Modi, has played a pivotal role in encouraging domestic defence manufacturing.

Under this initiative:

  • More defence items are being produced domestically.

  • The government is promoting technology transfer, indigenous design, and domestic innovation.

  • Defence procurement policies now favour Indian-made goods, creating a sustainable ecosystem.

The result is not only a reduction in defence imports but also a surge in exports, boosting the economy and national security.

India's Global Aspirations and Export Strategy

India’s long-term vision includes:

  • Establishing itself as a top exporter in the global arms market.

  • Strengthening strategic partnerships through defence trade.

  • Enhancing brand India in high-tech weaponry and systems.

The increase in exports also reflects the strategic trust that foreign countries are placing in Indian defence products, with consistent demand for items ranging from missiles and artillery to radars, UAVs, and protective gear.

Challenges and the Way Forward

While the numbers are impressive, challenges remain. These include:

  • Technology gaps in certain areas like jet engines and advanced drones.

  • The need for faster clearance and streamlined defence procurement processes.

  • Enhancing after-sales support and service capabilities for exported products.

To meet the ₹50,000 crore target by 2029, India will need to:

  • Expand its export basket with high-end systems.

  • Forge joint ventures and global collaborations.

  • Invest in research, development, and skilled manpower.

Conclusion: A Strategic Leap in Defence Diplomacy

India’s achievement of ₹23,622 crore in defence exports is not just a financial milestone—it’s a strategic leap that strengthens the country’s position on the global defence stage. The synergy between policy reforms, indigenous innovation, and public-private partnership is turning India into a defence export powerhouse.

As Rajnath Singh rightly emphasised, India’s defence sector is stronger than ever, and with initiatives like the Defence Corridors and Atmanirbhar Bharat, the country is on course to become a major global defence exporter.

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