India's defence exports achieved a landmark milestone in the financial year 2024-25, surging to a record ₹23,622 crore, equivalent to approximately $2.76 billion.

This figure marks a substantial leap forward, underscoring the nation's accelerating momentum in the global arms market. The growth reflects a deliberate strategic pivot towards self-reliance, propelled by flagship initiatives such as Atmanirbhar Bharat and Make in India.

Reaching around 80 countries in FY 2024-25 alone, Indian defence products have carved out a robust international footprint, with historical exports spanning over 100 nations. This expansion highlights the diversification of markets and the appeal of indigenous offerings. Major buyers, including the United States, France, and Armenia, have emerged as key destinations, signalling trust in India's manufacturing prowess.

At the heart of this success lie flagship products like the BrahMos supersonic cruise missiles, Pinaka multi-barrel rocket launchers, and Dornier-228 maritime patrol aircraft. These systems exemplify India's technological edge, blending indigenous innovation with proven reliability. Exports of such high-profile items have not only boosted revenues but also enhanced diplomatic ties through defence cooperation.

The Atmanirbhar Bharat initiative, translating to Self-Reliant India, has been instrumental in fostering domestic production capabilities.

By prioritising local research and development, it has reduced dependency on imports, which once dominated India's defence procurement landscape. Coupled with Make in India, these policies have incentivised private sector participation and streamlined export procedures.

This surge in exports demonstrates India's evolving role from a traditional arms importer to a competitive exporter. Historically, the country relied heavily on foreign suppliers for critical military hardware. Today, indigenous firms such as Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), and private players like Tata Advanced Systems are driving this transformation.

Key highlights include the sheer scale of the achievement: ₹23,622 crore in a single year surpasses previous records by a wide margin. The geographical reach to nearly 80 countries in FY25 alone points to aggressive marketing and compliance with international standards. Armenia, in particular, has become a standout partner, procuring Pinaka systems amid regional conflicts.

The United States and France, as top buyers, underscore the shift in global perceptions. The US has acquired Dornier aircraft for surveillance roles, while France has shown interest in collaborative projects. This diversification mitigates risks associated with over-reliance on any single market.

Looking ahead, the government has set an ambitious target of ₹50,000 crore in defence exports by 2029. Achieving this will require sustained investment in R&D, expansion of production lines, and navigation of geopolitical challenges. Initiatives like the Defence Corridors in Uttar Pradesh and Tamil Nadu are poised to bolster manufacturing infrastructure.

The significance of this growth extends beyond economics. It positions India as a vital player in the global defence industry, capable of supplying advanced weaponry to allies. This enhances strategic autonomy, allowing New Delhi to pursue independent foreign policies without import vulnerabilities.

Moreover, the export boom fosters technological spillovers. Joint ventures and technology transfers with partners like Russia for BrahMos have matured into profitable exports. Armenia's acquisitions, for instance, include not just hardware but also training and maintenance packages, creating long-term revenue streams.

Challenges persist, however. Intellectual property concerns, competition from established exporters like the US and Israel, and fluctuating global demand pose hurdles. Yet, India's cost-competitive edge—offering high-quality systems at lower prices—provides a distinct advantage.

Regulatory reforms have played a crucial role. Simplified export licensing, eased FDI norms up to 74% in defence manufacturing, and dedicated export promotion councils have accelerated deals. The positive indigenisation lists, mandating local sourcing for hundreds of items, further reinforce this trajectory.

In the broader geopolitical context, these exports strengthen India's influence in regions like South Asia, the Middle East, and Africa. Supplies to friendly nations counterbalance adversarial powers and align with India's multi-alignment strategy. For example, BrahMos deals with the Philippines signal deeper Indo-Pacific partnerships.

Domestically, the growth stimulates job creation and skill development. Thousands of engineers and technicians now contribute to export-oriented production, aligning with national goals of employment generation. Public-private partnerships have multiplied, with firms like Larsen & Toubro and Kalyani Strategic Systems scaling up.

Sustainability remains a focus, with emphasis on green manufacturing and ethical export practices. Adherence to end-user certificates and MTCR guidelines ensures responsible trade. This builds credibility, attracting repeat business from discerning buyers.

The FY 2024-25 record encapsulates a decade of reforms bearing fruit. From humble beginnings of ammunition and small arms exports, India now ships sophisticated missiles and aircraft. The journey towards ₹50,000 crore by 2029 appears feasible, provided innovation and diplomacy keep pace.

This strategic shift not only bolsters the economy but also fortifies national security. As India ascends the global defence export ladder, it redefines its identity—from a developing market to a manufacturing powerhouse. The world is taking notice, and the momentum shows no signs of abating.

Agencies