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India's Defence Exports in 2024-2025

Record Growth in Defence Exports

In the financial year 2024-25, India's defence exports 2024-2025 reached a historic milestone of ₹23,622 crore (approximately US$2.76 billion), marking a 12.04% growth compared to the previous year.

  • This remarkable surge is primarily attributed to increased sales of artillery shells, guns, and small arms, reinforcing India's growing role in the global defence market.

  • The Defence Public Sector Undertakings (DPSUs) experienced a notable 42.85% increase in their exports, while the private sector contributed ₹ 15,233 crores, highlighting the expanding footprint of India’s defence industry in international markets.

Expansion of Defence Industry and Export Policies

To further strengthen India's defence exports in 2024-2025, the Department of Defence Production issued 1,762 export authorizations, a 16.92% increase from the 1,507 issued in the previous year. The Ministry of Defence has streamlined licensing procedures, extended validity periods, and simplified the export authorization process to support rapid expansion.

A significant boost to the sector came from initiatives like India Launches ADITI 2.0, which aims to accelerate research and development (R&D) in defence technologies and integrate artificial intelligence (AI) into modern warfare. Additionally, the Akashteer program, designed to enhance air defence operations, has strengthened India’s capabilities in detecting and neutralizing aerial threats, further bolstering its export portfolio.

Expanding Global Market Reach

In FY 2024-25, India exported defence products to around 80 countries, with the United States, Israel, and Germany emerging as the top importers. This achievement highlights India's transition towards self-reliance in defence manufacturing and its growing presence in the international defence supply chain.

The recent Defence Exercise Sea Vigil-24, conducted along the Indian coastline, demonstrated India's advancements in maritime defence technologies, attracting interest from global buyers. Additionally, Project Kusha, focused on developing next-generation military equipment, is set to further propel India’s defence export market.

Future Targets and Government Vision

Defence Minister Rajnath Singh has set ambitious targets for the future, aiming to push India's defense exports in FY 2024-2025 beyond ₹30,000 crore in FY 2025-26, with a long-term goal of reaching ₹50,000 crore by 2029. The Modi government had initially set a five-year target of ₹35,000 crore for aerospace and defence exports, which is now being revised upwards due to the sector's rapid growth.

Key Defence Export Agreements and Collaborations

India has secured several major international defence deals in recent years, boosting its reputation as a reliable exporter. Some of the most significant agreements include:

  • BrahMos Missile Exports: A $375 million deal with the Philippines.

  • Advanced Towed Artillery Guns (ATAGS): Exported to several nations in Southeast Asia and Africa.

  • Akash Missile Systems: Interest from Egypt and Armenia.

  • Torpedo Loading Mechanisms and Naval Equipment: Growing demand from Middle Eastern nations.

Additionally, India has increased defence collaboration with countries like Brazil, Indonesia, and Vietnam, focusing on joint production and technology sharing.

Impact of Global Conflicts and Demand Surge

Ongoing geopolitical tensions, including the Russia-Ukraine war and the Israel-Hamas conflict, have accelerated global demand for defence products. Many nations are increasing their military capabilities, providing a lucrative opportunity for Indian defence manufacturers to expand their footprint in the international market.

Key Defence Export Products and Strategic Initiatives

India’s defence exports include a variety of advanced weapon systems, such as:

  • 155mm Advanced Towed Artillery Guns (ATAGS)

  • BrahMos Missiles

  • Torpedo Loading Mechanisms

  • Night Vision Devices

  • Armored Protection Vehicles

  • Coastal Surveillance Radar Systems

Ammunition and Sub-Systems

More than 100 Indian firms are actively engaged in exporting these products, demonstrating India's capabilities in the global defence industry. Additionally, the Antariksha Abhyas 2024 initiative has showcased India’s expertise in aerospace defence technologies, further solidifying its position as a key player in the international defence market.

Strengthening Domestic Defence Manufacturing

India’s strategy has shifted from defence imports to indigenous production, driven by policies promoting self-reliance. The government has implemented key policy reforms, including:

  • Streamlining industrial licensing for defence firms

  • Removing licensing requirements for parts and components

  • Extending export license validity to facilitate long-term contracts

  • Implementing a dedicated export authorization portal

Role of the Private Sector in Defence Exports

  • While DPSUs contributed ₹8,389 crores, the private sector accounted for ₹15,233 crores, making it the largest contributor to India's defence exports in 2024-2025.

  • Leading private companies like Bharat Forge, L&T Defence, and Tata Advanced Systems have played a crucial role in manufacturing and exporting high-tech weapon systems.

Final Thoughts

With its robust policy framework, technological advancements, and growing international demand, India's defence exports in 2024-2025 have reached unprecedented heights.

As the nation gears up to achieve its future export targets, initiatives like Akashteer, Project Kusha, and ADITI 2.0 will play a crucial role in reinforcing India's position as a global defence leader. The coming years will be instrumental in solidifying India’s status as a dominant player in the international arms market.

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