India's defence exports jump 63% in a year, hit record Rs 38,400 crore

India’s defence exports reached an all-time high of Rs 38,424 crore in the financial year 2025-26, marking a sharp 62.66 per cent increase from Rs 23,622 crore in the previous fiscal, according to official government data.

The increase of Rs 14,802 crore reflects a sustained rise in outbound defence shipments to over 80 countries, including Israel and the United States, which are currently engaged in a military campaign against Iran in the Middle East. Exports have nearly tripled over the past five years, indicating a steady expansion of India’s presence in the global defence market.

Defence Public Sector Undertakings (DPSUs) drove much of the growth, with exports rising 151 per cent year-on-year to Rs 21,071 crore from Rs 8,389 crore in FY25. The private sector also recorded steady gains, with exports increasing 14 per cent to Rs 17,353 crore from Rs 15,233 crore a year earlier. DPSUs accounted for 54.84 per cent of total exports, while private firms contributed 45.16 per cent.

The number of registered defence exporters also rose to 145 in FY26, up from 128 in the previous fiscal, marking a 13.3 per cent increase, the government data further noted.

Defence Minister Rajnath Singh lauded the performance, describing it as an “impressive success story” under Prime Minister Narendra Modi’s leadership.

In a social media post, Singh said India is steadily advancing towards becoming a global manufacturing hub for defence equipment, crediting the achievement to the combined 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 sharp rise in exports underscores the increasing global acceptance of Indian defence products and the country’s growing integration into international supply chains. India is now exporting defence equipment to over 80 countries, further strengthening its position in the global market.

Officials attributed the growth to sustained policy support and reforms aimed at improving ease of doing business. The Department of Defence Production has streamlined export procedures through a revamped online portal and simplified standard operating processes for authorisations, enabling faster clearances and boosting industry competitiveness.

Experts note that with strong momentum in both public and private sectors, India’s defence export trajectory signals a continued push towards self-reliance and a larger footprint in the global arms market.

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