India's defence sector is experiencing a historic upswing, with exports surpassing 38,000 crore rupees. This surge is directly linked to the triumph of Operation Sindoor, a 96-hour engagement that highlighted the capabilities of India's domestic defence systems. As international markets respond positively, key technologies like the BrahMos missile and Akash-NG air defence are leading the charge.

India’s defence sector is entering a phase where performance in real operations is becoming the main factor driving credibility, with global buyers responding more to outcomes than intent. That shift shows up sharply in the latest trade figures. As per data released by the Ministry of Defence in April 2026, India’s defence exports have reached an all-time high of ₹38,424 crore in FY 2025–26.

This marks a 62.66% increase over the previous fiscal year’s ₹23,622 crore, placing the sector on a steep upward trajectory. The export value jumped by ₹14,802 crore, reflecting growing global trust in India's indigenous capabilities and advanced manufacturing strength. Defence Public Sector Undertakings accounted for 54.84% of exports at ₹21,071 crore, while the private sector contributed 45.16% at ₹17,353 crore.

What distinguishes this phase of growth is not just scale, but timing and context. It coincides with the first anniversary of Operation Sindoor on May 7, 2026 — a 96-hour conflict in May 2025 that has since become a reference point in India’s defence narrative, particularly in discussions around indigenous capability validation. Triggered by the brutal Pahalgam terror attack on April 22, 2025, which killed 26 civilians, the operation represented India's most sweeping cross-border response since 1971.

Operation Sindoor, as reflected in Ministry of Defence briefings, is widely assessed within policy and industry circles as a live operational demonstration of India’s indigenous systems under contested conditions.

The operation involved precision strikes on strategic infrastructure, including reported targets such as Nur Khan and Rahimyar Khan airbases, along with nine key terror hubs in locations like Bahawalpur and Muridke. It featured coordinated multi-domain operations across land, air, and sea by the Indian Army, Air Force, and Navy.

Among the systems highlighted were the Air-Launched BrahMos missile, integrated drone warfare assets, and networked air defence and surveillance systems. The operation began at 03:30 IST on May 7 with coordinated air strikes using precision-guided munitions, involving over 50 sorties and real-time intelligence from satellite surveillance.

The Indian Air Force delivered high-impact strikes, while the Navy mobilised submarines, carrier groups, and aerial assets, and the Army neutralised enemy UCAVs and drone swarms.

According to official defence communication over the subsequent months, the operation validated India’s evolving “sensor-to-shooter” capability, combining real-time intelligence, electronic warfare resilience, and precision strike coordination in a high-intensity environment.

Over 100 terrorists, including high-value operatives like Yusuf Azhar, Abdul Malik Rauf, and Mudassir Ahmed, were neutralised. This operational experience is widely viewed as having contributed to a perceptible shift in international buyer confidence.

Air Marshal Sanjeev Kapoor (Retd), AVSM, VM, stated that the decisive phase unfolded on the morning of 10 May, when India deployed the BrahMos supersonic cruise missile, indigenously manufactured, to strike 11 airfields in Pakistan within 45 minutes.

He further added, "That was a game-changer. It brought them to the table for a ceasefire. That is the power of the Indian Air Force." Pakistan's Deputy Prime Minister Ishaq Dar later admitted that at least 80 Indian drones targeted Nur Khan airbase over 36 hours, with strikes damaging the facility and injuring personnel.

Between July 2025 and March 2026, India secured defence export orders estimated at approximately ₹24,000 crore, forming the core of the current export surge. As per Defence Ministry data released in April 2026, India now exports defence equipment to more than 80 countries, with the number of registered exporters rising to 145 from 128 in the previous year. Defence PSUs’ exports surged by 151 percent, while private firms recorded an increase of 14 percent year-on-year.

The composition of demand reflects a shift from component-level procurement to system-level acquisition. Four platforms have emerged as consistent drivers of export interest. BrahMos missile system: Reported operational effectiveness during the May 2025 conflict has strengthened its positioning as a long-range precision strike system, particularly in Southeast Asian and West Asian markets.

Akash-NG air defence system: Following reported interception performance exceeding 90% against aerial threats during operational deployment, it has attracted procurement interest from multiple regions, including Africa and South America. The system, capable of engaging multiple targets simultaneously in all weather conditions up to 70 km, shone alongside Akashteer in guarding Indian skies against Pakistani drones and missiles.

Indigenous loitering munitions: Their use in electronic warfare-heavy environments during Operation Sindoor has reinforced their role in modern asymmetric warfare requirements. These home-grown kamikaze drones drew significant foreign interest post-operation.

Netra AEW&C system: Its performance in coordinating large-scale aerial operations under contested electronic conditions has supported growing international engagement. These systems collectively reflect a broader transition — from platform exports to integrated combat capability packages.

The export surge is embedded within a larger expansion of domestic defence production and industrial participation. As per statements by Union Minister of State for Science and Technology Dr. Jitendra Singh in May 2026, India’s defence production reached ₹1.54 lakh crore, reflecting a 174% increase over the past decade. Defence exports, he noted, have grown from approximately ₹600 crore in 2014 to over ₹24,000 crore in the mid-2020s, and have now reached ₹38,424 crore in FY 2025–26, underscoring a long-term structural shift.

This diversification is now reflected in the supply chain itself. More than 16,000 MSMEs and over 1,000 defence start-ups are integrated into India’s defence manufacturing ecosystem, contributing to both components and subsystem production. A major macro anchor in this expansion is the defence fiscal push itself: the government’s defence budget for FY 2026–27 stands at ₹6,81,000 crore, 9.5% higher than the previous year, reinforcing the scale of domestic backing behind this industrial and export surge.

This export performance is supported by a series of policy and institutional reforms implemented over recent years. Key measures include a streamlined online export authorisation system reducing procedural timelines significantly. Production Linked Incentive (PLI) schemes for drones and defence components, expanded in 2025.

Corporatisation of ordnance factories into Defence Public Sector Undertakings (DPSUs). Implementation of Positive Indigenisation Lists restricting imports of select systems and components. Together, these reforms have accelerated domestic production while simultaneously expanding export readiness.

The broader industrial base has seen parallel momentum, with several major contracts awarded across key defence manufacturers. Hindustan Aeronautics Limited (HAL) secured contracts for 97 TEJAS MK-1A fighter aircraft and additional Su-30MKI upgrades. Bharat Electronics Limited (BEL) signed multiple contracts, including radar systems and precision weapons integration partnerships, including a joint venture with France’s Safran Electronics and Defence.

Bharat Dynamics Limited (BDL) expanded missile production capacity with new facilities and secured contracts for INVAR anti-tank missiles. Larsen & Toubro (L&T) advanced naval and armoured systems manufacturing through partnerships with global defence firms. Mazagon Dock Shipbuilders Limited (MDL) is engaged in submarine development under Project 75I in collaboration with international partners.

These contracts collectively reflect an ecosystem moving towards integrated design, production, and lifecycle support capabilities. Key contractors like HAL, BEL, TATA Advanced Systems, L&T, and Bharat Forge have secured multi-billion dollar deals, creating thousands of jobs and advancing the Atmanirbhar Bharat initiative.

Taken together, the current phase represents a convergence of operational validation, industrial expansion, and export acceleration. Operation Sindoor, as referenced across official communications through 2025–26, has become a reference point in this transition — not as an isolated event, but as a catalyst within a longer structural shift. India’s defence exports crossing ₹38,424 crore in FY 2025–26, therefore, is not being viewed in isolation.

It is being interpreted within policy and industry circles as part of a wider repositioning of India’s role — from a historically import-dependent market to an emerging exporter of integrated, combat-proven systems.

Agencies