India’s Defence Exports Soar to Record ₹38,424 Crore, Marking Massive 62.66% Surge
Driven by ‘Make in India’ push, India strengthens global defence footprint while fully utilising capital budget for second consecutive year
New Delhi: India has achieved a historic milestone in the defence sector, with exports reaching an all-time high of ₹38,424 crore in the financial year 2025–26. According to the Ministry of Defence, this marks a remarkable 62.66% increase compared to the previous fiscal year, highlighting the country’s rapidly growing presence in the global defence market.
India has set an ambitious target of ₹50,000 crore in defence exports by 2030, alongside a domestic defence production goal of ₹3 lakh crore. Sharing this achievement, Defence Minister Rajnath Singh stated that exports have increased by ₹14,802 crore, reflecting rising global confidence in India’s indigenous defence capabilities and advanced manufacturing.
He emphasized that both public and private sectors have played a crucial role in this success. Defence Public Sector Undertakings (DPSUs) contributed 54.84% to total exports, while the private sector accounted for 45.16%. These figures indicate that India’s defence ecosystem is evolving into a strong, collaborative, and self-reliant structure.
The Defence Minister also credited the leadership of Narendra Modi, noting that initiatives like ‘Atmanirbhar Bharat’ and ‘Make in India’ have enabled the country not only to meet domestic defence needs but also to establish a strong identity in the global market.
Experts believe that the increasing quality, competitive pricing, and technological advancement of Indian defence products have significantly boosted international demand. The government is also working on new strategies and global partnerships to further enhance exports in the coming years.
In another major achievement, the Ministry of Defence fully utilized its capital budget of ₹1.86 lakh crore in FY 2025–26—marking the second consecutive year of 100% utilization. Overall, 99.62% of the total defence budget was spent, including civil expenditure and pensions.
Initially allocated ₹1.80 lakh crore for capital expenditure, the budget was later increased to ₹1.86 lakh crore by the Ministry of Finance to meet rising operational needs, especially after Operation Sindoor and increased military requirements.
A significant portion of this expenditure was directed toward the procurement of modern military equipment. Major investments were made in fighter aircraft and engines, along with land-based weapon systems, electronic warfare technologies, ammunition, naval shipbuilding, and other defence assets. Key projects across the Army, Air Force, and Navy included multi-role fighter jets, long-endurance drones, advanced naval vessels, and missile systems.
The Ministry stated that such effective capital spending will accelerate the modernization of the armed forces, strengthen border infrastructure, and positively impact the economy by boosting investment and generating employment opportunities across multiple sectors.
