From ₹686 crore in FY14 to ₹23,622 crore in FY25, India’s defence exports have increased by almost 35 times in the past ten years. They are expected to reach ₹30,000 crore in FY26 and ₹50,000 crore by 2029. From ₹40,000 crore in 2014 to over ₹1.5 lakh crore in FY25, domestic defence output has more than tripled in the past ten years. It is anticipated to reach about ₹2 lakh crore in the current fiscal year.
India’s drive for Atmanirbharta (Self-Reliance) in defence manufacturing, which seeks to lessen reliance on imports by creating a strong ecosystem where public and private sector businesses create top-notch defence technologies and products for both domestic use and international export, is the driving force behind this remarkable growth. The development of next-generation fighter jets and significant orders like the delivery of 97 TEJAS fighter aircraft to Hindustan Aeronautics Ltd (HAL) demonstrate India’s ambition to become a world leader in the export of cutting-edge military hardware.
With ₹6.22 lakh crore allotted in FY25 and more increases anticipated, the defence budget has been significantly expanded to accommodate this expansion. India is also aggressively seeking international defence investments and alliances, emphasising joint ventures such as Airbus’s manufacturing of C295 transport aircraft with Tata Aerospace. Along with liberalised FDI regulations and technological transfers from DRDO, the development of this sector is mostly being driven by defence industrial corridors in Tamil Nadu and Uttar Pradesh.
In terms of defence, Atmanirbharta seeks to establish a self-sufficient defence manufacturing ecosystem that integrates public and private sectors to develop, produce, and export cutting-edge military hardware, rather than just replacing imports. Focussing on domestic R&D, streamlining export and licensing procedures, and encouraging start-ups and MSMEs to support defence innovation are all part of the approach. It also highlights how India’s defensive capabilities are consistent with its civilisational principles of peace, respect for one another, and advancement for all.
Defence exports reached around 100 nations and increased from ₹686 crore in FY14 to ₹23,622 crore in FY25.
In FY25, domestic defence output surpassed ₹1.5 lakh crore, up from ₹40,000 crore in 2014.
75% of the defence procurement budget has been set aside by the government for Indian companies.
TEJAS fighters (orders of ₹66,000 crore for 97 planes plus an earlier order for 83 jets worth ₹48,000 crore) and strategic plans for fifth generation fighter jets and engines in partnership with foreign partners are examples of major domestic projects.
defence Public Sector Undertakings (DPSUs) contributed ₹8,389 crore in FY25, while private sector defence exports contributed ₹15,233 crore.
increased defence spending (₹6.22 lakh crore in FY25, with more to come).
In order to increase local output, DPSUs have created five positive indigenisation lists.
Tamil Nadu and Uttar Pradesh’s defence industrial corridors are expected to draw in investments.
FDI policy was liberalised, permitting up to 74% through automated channels and 100% with government approval.
DRDO provides industry with free technology transfers.
The Strategic Partnership Model encourages private companies to build tanks, submarines, fighter planes, and helicopters.
invitation to international defence firms to invest and co-produce in India, as seen by alliances such as Airbus-TATA Aerospace.
India hopes to become a major international defence supplier with cutting-edge capabilities and international alliances. Rajnath Singh, the minister of defence, highlights India’s rising prominence in the world economy, population dividend, and civilisational values. In order to achieve a world order founded on peace and dignity, Indian culture places more value on strength as the ability to care for and respect one another than it does on supremacy. By 2029 and beyond, India’s defence sector will be of world-class rank, and it will be in a position to play a major role in forming the future global order.
The objective of ₹50,000 crore for defence exports by 2029 is both ambitious and achievable, considering India’s prior history and current reforms. Over the past ten years, India’s defence exports have increased by almost 35 times, and in FY25, they reached about ₹23,622 crore, or nearly half of the goal. This noteworthy development is supported by government initiatives that emphasise home manufacturing, private sector involvement, and export process simplification, as well as by a roughly threefold increase in domestic defence production.
strong government support, as seen by higher defence spending and procurements that are primarily allocated to Indian businesses.
policy changes that facilitate unfettered technology transfer from DRDO and ease export approval and industrial licensing.
A strong industrial basis is indicated by the private sector’s defence exports, which have grown rapidly and now surpass those of the public sector.
Large-scale initiatives that improve technological capabilities include partnerships with international businesses and the domestic Tejas fighter aircraft.
expanding global defence markets, where India is attracting customers from Asia, Africa, and the Middle East who are searching for dependable, reasonably priced equipment.
There are still obstacles to overcome, including the need for ongoing R&D expenditures, innovation, and growing strategic partnerships, as well as competition from well-established international players like the US, Russia, and China. However, India is on a clear path to meet or possibly surpass this export target with consistent government support, expanding industrial capabilities, and an emphasis on both volume and quality. This is in line with models like South Korea, which quickly rose in the world’s defence export rankings by boosting its domestic industry.
Instead of being merely a theoretical aim, the ₹50,000 crore defence export target by 2029 is a realistic and attainable objective given India’s present momentum, policy environment, and export history.
India is quickly evolving into a significant international defence exporter and independent military force with a thriving ecosystem that fosters research, production, and exports of cutting-edge defence products thanks to Atmanirbharta, strategic investments, legislative changes, and international collaborations. Both international collaboration and national security are bolstered by this tendency.
