NEW DELHI – India’s defence sector has achieved a landmark milestone, with exports surging to an all-time high of ₹38,424 crore in the 2025-26 financial year. This represents a massive 62.66% increase over the previous year’s figure of ₹23,622 crore, marking a nearly threefold growth in the last five years.
Raksha Mantri Shri Rajnath Singh lauded the performance, stating that under the leadership of PM Narendra Modi, India is rapidly transforming into a global defence manufacturing hub.
Export Performance Breakdown
The record growth was fueled by a balanced contribution from both public and private sectors:
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DPSUs Surging: Defence Public Sector Undertakings saw a staggering 151% increase in exports, contributing ₹21,071 crore (54.84% of total exports) compared to ₹8,389 crore in the previous fiscal.
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Private Sector Growth: Private firms contributed ₹17,353 crore (45.16% of total exports), recording a steady 14% rise over the previous year’s ₹15,233 crore.
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Expanding Footprint: India now exports defence equipment to over 80 countries. The number of active exporters grew by 13.3%, rising from 128 to 145.
Key Growth Drivers
The Department of Defence Production attributed the success to several strategic reforms aimed at fostering a competitive industry:
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Ease of Doing Business: Streamlined regulatory processes and a revamped online portal for export authorizations.
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Simplified SOPs: Implementation of simplified Standard Operating Procedures (SOPs) to facilitate faster global trade.
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Supply Chain Integration: Increasing global acceptance of Indian-made systems and sub-systems within international aerospace and defence supply chains.
Strategic Outlook
The record figures align with the government’s vision to position India among the world’s top defence exporters. The shift from being a major importer to a significant global supplier reflects the increasing maturity of the domestic “Aatmanirbhar” defence ecosystem, supported by enhanced operational efficiency and performance-oriented policies.
