India is intensifying its push to become a major global arms exporter, leveraging a combination of financial incentives, diplomatic outreach, and competitive pricing to secure a larger share of the international defence market.

Under Prime Minister Narendra Modi, the government is seeking to replicate its success in manufacturing sectors like electronics and pharmaceuticals by adding high-value defence products—such as missiles, helicopters, and battleships—to its export portfolio.

A key element of this strategy is the expansion of the state-owned Export-Import Bank (EXIM) of India’s ability to offer long-term, low-cost loans to foreign buyers, including those with higher political or credit risks who might otherwise struggle to access conventional financing.

This move is designed to make Indian arms deals more attractive, especially to countries that have traditionally relied on Russian weaponry but are now seeking alternatives due to the ongoing war in Ukraine and shifting global alliances.

In parallel, New Delhi is significantly increasing the number of defence attaches in its embassies, particularly in regions like Africa, South America, and Southeast Asia. These attaches are tasked with directly promoting Indian defence products, analysing the needs of host countries, and facilitating negotiations.

The government is also brokering meetings between foreign delegations and domestic arms manufacturers, and showcasing advanced equipment—such as combat helicopters—during military exercises to demonstrate capability and reliability.

India’s arms production has seen substantial growth, with $14.8 billion worth of arms produced in the 2023-2024 fiscal year—a 62% increase since 2020. While India missed its most recent export target of $3.5 billion by about a third, this still represents a dramatic rise from the $230 million exported a decade ago.

The government has set an ambitious goal to double arms and equipment exports to $6 billion by 2029, aiming to move beyond traditional exports of ammunition and small arms to more sophisticated systems.

One of India’s competitive advantages is cost. Indian-made 155 mm artillery shells, for example, are priced at $300–$400 each, compared to over $3,000 for European equivalents. Similarly, Indian howitzers are sold at about half the price of their European counterparts. This price competitiveness is particularly appealing to countries with limited defence budgets or those facing urgent procurement needs due to global supply chain disruptions.

India’s outreach is already yielding results. In Armenia, for instance, India has rapidly increased its share of arms imports, eroding Russia’s traditional dominance. The country is also targeting new markets such as Brazil, where it is negotiating sales of Akash missiles and potentially battleships, with EXIM Bank expected to provide financing support. Indian defence firms like Bharat Electronics are establishing a presence in key markets to facilitate these deals.

Despite these advances, India faces challenges in convincing potential buyers of the effectiveness and reliability of its newer, high-end defence products. Experts note that increased domestic use and demonstration of indigenous equipment will be crucial for building international confidence.

India’s arms export strategy is characterized by aggressive government intervention, financial innovation, and a focus on markets underserved by traditional Western and Russian suppliers. As global defence demand surges and geopolitical alignments shift, India is positioning itself as a low-cost, reliable alternative for countries seeking to diversify their sources of military hardware.

Reuters