Using a mix of financial incentives, diplomatic outreach, and competitive pricing, India is stepping up its efforts to become a major global arms exporter in order to increase its market share in the global defense industry.
Under Prime Minister Narendra Modi, the government is attempting to duplicate its achievements in manufacturing industries like electronics and pharmaceuticals by expanding its export portfolio to include high-value defense items like battleships, helicopters, and missiles.
The growth of the state-owned Export-Import Bank (EXIM) of India’s capacity to provide long-term, affordable loans to international buyers—including those with greater political or credit risks—who may otherwise find it difficult to obtain traditional financing is a crucial component of this approach.
In particular, for countries who have previously relied on Russian weaponry but are now searching for alternatives due to the ongoing war in Ukraine and shifting geopolitical alignments, this step intends to make Indian arms transactions more appealing.
In particular, for countries who have previously relied on Russian weaponry but are now searching for alternatives due to the ongoing war in Ukraine and shifting geopolitical alignments, this step intends to make Indian arms transactions more appealing.
In order to show off its capabilities and dependability, the government is also arranging meetings between international delegations and domestic arms producers and displaying cutting-edge weaponry, including combat helicopters, during military drills.
India’s armaments manufacturing has increased significantly; in the fiscal year 2023–2024, $14.8 billion worth of weapons were manufactured, a 62% increase from 2020. Even though India fell almost a third short of its most recent export goal of $3.5 billion, this still marks a sharp increase from the $230 million it shipped ten years ago.
In order to transition from the conventional sale of small guns and ammunition to more advanced systems, the government has set the ambitious target of doubling arms and equipment exports to $6 billion by 2029.
In order to transition from the conventional sale of small guns and ammunition to more advanced systems, the government has set the ambitious target of doubling arms and equipment exports to $6 billion by 2029.
India’s outreach efforts are already paying off. For example, India’s proportion of weaponry imports into Armenia has grown quickly, undermining Russia’s long-standing hegemony. With EXIM Bank anticipated to boost finance, the nation is also pursuing new markets, including Brazil, where it is discussing sales of Akash missiles and maybe battleships. To make these agreements possible, Indian defense companies such as Bharat Electronics are expanding into important markets.
Despite these developments, India still has trouble persuading prospective customers of the dependability and efficacy of its more recent, expensive defense systems. According to experts, boosting home use and showcasing domestically produced equipment will be essential to fostering confidence abroad.
Despite these developments, India still has trouble persuading prospective customers of the dependability and efficacy of its more recent, expensive defense systems. According to experts, boosting home use and showcasing domestically produced equipment will be essential to fostering confidence abroad.
