India has rapidly emerged as the third-largest exporter of arms to Europe, according to Defence Secretary Rajesh Kumar Singh, highlighting a major shift in the country's position within the global defence industry.

Speaking at the KPMG Agrasar Bharat Manch 2026 event in New Delhi, Singh said the rise has been driven by growing European demand under the Rearm Europe initiative and by the expansion of India's domestic defence manufacturing ecosystem.

He noted that India's long-term objective has been to build a much broader defence industrial base. What was once heavily centred around approximately 16 public sector defence companies has evolved into a significantly larger ecosystem encompassing private industry, small and medium enterprises, and a rapidly expanding Start-Up sector.

According to Singh, the benefits of this transformation are now becoming visible both economically and operationally.

He stated, "In India, on the other hand, for the last 10 years, we've seen tremendous growth in our defence ecosystem. We now have almost 840 odd companies with industrial licences that are large and medium-sized, and some 17,000 small and medium enterprises, including Start-Ups. And the result of this diversified industrial base is becoming visible in terms of the value of domestic sales, which are now almost 17 billion euros."

The Defence Secretary revealed that India's defence exports have reached an all-time high of ₹38,424 crore, equivalent to approximately 3.6 billion euros.

Highlighting the country's growing role in Europe, Singh said, "Our exports have reached an all-time high of 38,424 crores, which is about 3.6 billion euros, and I was reading a Bloomberg report yesterday, which said that suddenly over the last year, India became the third largest exporter of arms to Europe, mainly because of the Rearm Europe initiative."

He added that a substantial volume of standard ammunition, artillery shells, and both large- and small-calibre ammunition has been exported to European customers as the continent accelerates efforts to replenish military stockpiles and strengthen defence preparedness.

India currently exports defence equipment to more than 80 countries worldwide.

Singh said government policy seeks to ensure that around 75 per cent of annual defence capital expenditure, estimated at between $20 billion and $25 billion, is spent within the country. He stressed that procurement priorities remain focused on IDDM, or Indian-designed, developed and manufactured systems, in order to strengthen technological sovereignty.

The Defence Secretary explained that Indian exports now cover a wide spectrum of military products rather than only ammunition.

"I mentioned that suddenly out the globe, we become the third largest whatever arms to Europe, one, mainly because of the artillery. In addition, we export a variety of equipment, including everything from bulletproof jackets and helmets to small arms," he said.

He added that many buyers, particularly in Southeast Asia, are engaged in public negotiations and contracts covering numerous categories of defence equipment.

These exports include defence components, small arms, artillery systems, gun systems and a range of tactical military products, reflecting the increasing maturity of India's defence manufacturing sector.

Singh also pointed to India's changing defence procurement landscape. While Russia historically served as India's largest defence supplier, he said that dependence has steadily reduced as New Delhi diversified its partnerships.

"We still have a lot of our equipment that is of Russian origin, but over time that dependence has come down and we diversified; we already have fairly strong bilateral relations with some European countries, France in particular. But also with several other countries as well."

He noted that France now accounts for roughly 15 per cent of India's defence imports, while Israel holds a similar share. He also highlighted growing strategic alignment with countries such as Greece and Cyprus, which he recently visited.

Looking ahead, Singh said India intends to strengthen its participation in Europe's defence industrial landscape through joint ventures rather than direct involvement alone.

"India intends to increasingly take part in Europe's arms procurement program. Not directly, but by setting up joint ventures in Europe."

He added that Indian firms establishing joint ventures in Europe would gain access to European government procurement opportunities, while European companies could establish partnerships in India to participate in the country's expanding defence market.

At the same time, he stressed that foreign companies seeking to benefit from Indian procurement opportunities would continue to be required to meet local manufacturing obligations under the Make in India framework.

Singh observed that European localisation requirements generally stand at around 25 per cent, compared with India's minimum requirement of 50 per cent, although the overall objectives behind both frameworks are broadly similar.

He expressed hope that future cooperation would lead to deeper integration between Indian and European defence supply chains, creating stronger industrial partnerships and opening new opportunities for manufacturers on both sides.

The remarks underscore the growing international competitiveness of India's defence industry, which has expanded from a predominantly state-led sector into a vast network of public enterprises, private companies, SMEs and Start-Ups.

Rising exports, record domestic sales, increasing ammunition demand from Europe and expanding international partnerships collectively signal India's emergence as an increasingly important player in the global defence market.

ANI