From Importer to Exporter: How India’s Defence Exports Boomed 34-Fold in a Decade

Ten years ago, the idea of India becoming a defence export powerhouse might have seemed far-fetched. Known more as an importer than a supplier, India’s dependence on foreign defence equipment was a long-standing challenge. But today, the narrative has changed — and how!

In a landmark announcement, the office of Defence Minister Rajnath Singh recently revealed that India’s defence exports touched a record-breaking ₹23,622 crore in 2024-25. To put that into perspective, in 2013-14, this figure was a modest ₹686 crore. That’s a staggering 34-fold increase in just a decade.

So, what fuelled this transformation? How did India go from being heavily reliant on imports to supplying arms, ammunition, subsystems, and high-tech defence components to nearly 80 countries around the world? The answer lies in a mix of policy push, innovation, startup power, and strategic intent.

Atmanirbhar Bharat: More Than a Slogan

The rise in defence exports is not a happy accident. It’s the result of a sustained push towards self-reliance or ‘Atmanirbhar Bharat’, a vision strongly championed by the Indian government in recent years.

From introducing the Make in India campaign to launching targeted schemes like the Production-Linked Incentive (PLI) for defence manufacturing, the government has been working hard to transform the ecosystem. These initiatives aim to reduce import dependency, boost domestic manufacturing, and attract both foreign and local investment into India’s defence production capabilities.

And the results are now visible.

Defence Startups: The New Frontline Innovators

While traditional Public Sector Undertakings (PSUs) continue to dominate a large part of India’s defence production, a new wave of startups is emerging in this space — agile, tech-savvy, and bold.

Startups are developing cutting-edge solutions in surveillance, drones, robotics, cybersecurity, and advanced electronics. Many of them have also begun exporting their products or collaborating with global defence players. These innovations are not just reshaping warfare tactics but also putting India on the global defence technology map.

With dedicated defence and aerospace corridors being developed in states like Uttar Pradesh and Tamil Nadu, the government is laying the groundwork for industrial clusters that could become the next big manufacturing hubs — empowering startups, MSMEs, and larger players alike.

Investor Confidence at an All-Time High

The momentum in the defence sector is not going unnoticed on Dalal Street. The Nifty India Defence index has jumped over 30% in the past three months, signalling growing investor confidence in the sector.

This bullish sentiment is being driven by a mix of factors: rising global demand for arms, India’s proven capability in manufacturing, and recent geopolitical tensions which have underscored the strategic need for defence self-sufficiency.

Several PSUs in the defence space have delivered strong returns, and investors are now looking beyond the traditional players — toward young startups, listed or unlisted, that are innovating at the intersection of defence, AI, and hardware.

The Global Footprint Expands

In 2024-25 alone, India exported a diverse range of defence equipment — from basic arms and ammunition to complex subsystems and high-tech components — to almost 80 countries. This level of international outreach marks a significant shift in how India is perceived on the global defence stage.

Global defence majors are also increasingly partnering with Indian players — offering technology transfer agreements, joint R&D projects, and manufacturing collaborations. This is helping Indian companies integrate into global supply chains and drive up both quality and capability.

The Road Ahead: Rs 50,000 Crore by 2029

Buoyed by this growth, the Indian government has now set its sights even higher — with a target of ₹50,000 crore in annual defence exports by 2029. It’s an ambitious goal, but the trajectory so far suggests that it’s not out of reach.

If India continues to nurture its startup ecosystem, strengthen global ties, and maintain its reform momentum, it could soon emerge as a leading global hub for affordable and reliable defence solutions.

India’s defence export journey is more than just a story of numbers. It’s a reflection of the country’s growing strategic maturity, its industrial strength, and a tech-driven future led by both legacy giants and fearless young startups.

In a world where geopolitical dynamics are constantly shifting, India is no longer just defending its borders. It is stepping up to secure the world — and doing so on its own terms.