India’s defence exports have become a significant growth driver for its domestic defence industry, with government targets set ambitiously to expand its global presence in the coming years, according to a Goldman Sachs report on the Indian Aerospace and Defence sector.

From FY14 to FY25, India’s defence exports witnessed a sharp rise from ₹6.8 billion (USD 80 million) to ₹236 billion (USD 2.77 billion). The government aims to further increase exports to ₹350 billion (USD 4.1 billion) by FY27 and ₹500 billion (USD 5.8 billion) by FY29, highlighting a substantial growth trajectory.

Currently, over 100 countries source Indian-built defence systems and components, spanning from small arms and munitions to advanced aerospace sub-systems. Private sector companies dominate this export success, contributing around 65% of total exports despite having only a 35% share in domestic defence production value.

To increase India’s share in the estimated USD 100 billion global arms market, the report emphasises that Indian companies need to transition from producing mainly components and sub-systems to offering complete systems and platforms. Interest from friendly nations has already been shown in key Indian platforms such as the BrahMos missile, Pinaka artillery systems, and Akash air defence systems.

Key products identified as export-ready by the report include the TEJAS MK-1A fighter jet with indigenous avionics, the Prachand light combat helicopter, naval frigates and corvettes, and missile defence systems like Akash-NG and QRSAM. Indian firms are also advancing in high-value aerospace materials, such as titanium and superalloys.

The European Union’s Readiness 2030 plan was highlighted as a potential opportunity that could open doors for Indian defence manufacturers in areas including ammunition, drones, radar systems, and electronic warfare technology, further strengthening India’s international partnerships.

The bullish outlook for Indian defence exports is supported by rising global military demand, government policies like the Atmanirbhar Bharat initiative promoting self-reliance, and a growing role of private industry in defence manufacturing and exports.

Despite being the world’s fifth-largest defence spender, India remains the second-largest importer of defence equipment. However, the country has made significant strides in designing and building indigenous fighters, satellites, radars, and other systems, substantially reducing its dependence on foreign arms suppliers.

Based On ANI Report