India's reported export of the indigenous Akash surface-to-air missile system to Tajikistan and Turkmenistan could mark another important step in the country's ambition to become a major global defence exporter, NDTV reported.

The potential deals would also give Indian defence manufacturers a stronger presence in Central Asia, where countries are increasingly seeking alternatives to Russian and Chinese military equipment.

The development follows earlier export successes with Armenia and the Philippines, both of which have procured Indian missiles and munitions, highlighting the growing international acceptance of Indian defence products.

More broadly, the Akash missile system symbolises India's transformation from one of the world's largest arms importers into a country seeking to export sophisticated indigenous military technology. For decades, excessive controls and limited export incentives constrained the defence manufacturing sector, creating a contradiction between India's large defence imports and its industrial potential.

That picture is changing rapidly. Defence production rose from ₹46,429 crore in 2014-15 to about ₹1.78 lakh crore in 2025-26, while defence exports surged from ₹686 crore in 2013-14 to a record ₹38,424 crore in 2025-26, reaching more than 80 countries.

The government has set targets of ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029. Achieving these goals will require higher manufacturing output and a sustained international presence.

India is also moving beyond exporting components and spare parts towards complete weapon systems. Missiles, radars, electronic warfare systems, counter-drone technologies, artillery platforms and naval equipment are increasingly part of the country's export portfolio.

The BrahMos cruise missile and Akash air-defence system demonstrate this evolution, while platforms such as the Astra air-to-air missile, TEJAS light combat aircraft and indigenous naval vessels offer future opportunities. India's proven capability in building corvettes, frigates and destroyers also raises questions about why these warships have yet to secure a larger share of global defence markets.

The Akash project and its advanced variants, including Akash Prime and Akash-NG, underline the importance of sustained research, regular upgrades and reliable production capacity in supporting long-term export growth.

Defence manufacturing is not only a national security priority but also a major economic opportunity. The sector drives investment, skilled employment, technological innovation and industrial development. It also fosters advances in areas such as electronics, advanced materials, sensors, communications, propulsion and precision manufacturing.

However, defence production requires substantial upfront investment, rigorous testing, extensive validation and long-term delivery commitments. Export orders help companies spread development costs, increase production volumes and reduce reliance on domestic orders. This is particularly important for private-sector firms and MSMEs supplying components and specialised services.

One of the industry's biggest concerns remains export financing, particularly through Lines of Credit supported by the Export-Import Bank of India. Manufacturers argue that obtaining financing can be difficult even after securing overseas contracts, with cumbersome procedures often delaying execution.

While government-to-government deals generally face fewer challenges, industry believes this approach alone cannot support India's wider export ambitions, especially as private-sector participation is actively encouraged.

The issue is particularly acute for MSMEs, which must navigate defence-specific requirements such as trials, post-trial validation and acceptance procedures. Industry representatives argue that despite substantial credit facilities available through Exim Bank, defence exports account for only a small share, strengthening calls for special treatment similar to a priority sector.

Manufacturers are urging policymakers to design financing mechanisms better suited to the realities of defence exports, where contracts often involve customisation, technical evaluations, security clearances and lengthy delivery schedules. Significant expenditure may be required long before payments are received.

To address these challenges, industry has called for a dedicated defence-export financing framework offering working capital, contract-linked credit and appropriate guarantees. There is also support for a single-window mechanism to coordinate export clearances, financing, insurance and other approvals.

Advocates believe the government should examine whether defence manufacturing and exports warrant priority-sector-like treatment in consultation with the Reserve Bank of India, the Ministry of Finance and Exim Bank. The aim would be to recognise the sector's unique risks, capital requirements and long development cycles without weakening financial discipline.

A more coordinated approach is also needed across government agencies. While the Ministry of Defence promotes exports and private investment, financing institutions often operate under separate procedures, leaving exporters to bridge the gap between policy objectives and practical implementation.

The opportunity remains substantial. As countries seek to diversify military procurement amid growing geopolitical uncertainty, India is increasingly positioned as an alternative supplier. Its expanding industrial base, improving technological capabilities and strengthening diplomatic ties provide access to potential markets across Asia, Africa, the Middle East and beyond.

The Akash missile system demonstrates what India can achieve when indigenous technological capability is matched by export ambition. The next challenge is creating a policy and financing ecosystem that enables many more Indian defence platforms to follow the same path.

Agencies