According to official data released by the Ministry of Defence, India’s defence exports reached ₹38,424 crore (about $4 billion) in FY26. This marks a significant rise from ₹23,622 crore ($2.57 billion) in the previous financial year, representing a year-on-year growth of nearly 63 percent.

The scale of this expansion becomes even more striking when viewed over a longer timeline.

In 2016–17, this field exports stood at just ₹1,522 crore (about $165 million). The jump to over $4 billion within less than a decade highlights the rapid evolution of India’s defence manufacturing capabilities and export potential.

Sustained growth driven by policy and industry

The growth trajectory of India’s defence exports has followed a consistent upward pattern, with notable acceleration after 2021–22. Exports crossed the ₹10,000 crore ($1.09 billion) mark for the first time in 2018–19 and have since expanded at an increasingly rapid pace.

This rise has been supported by a combination of policy initiatives and industry participation.

The Department of Defence Production has implemented measures aimed at easing regulatory processes, including streamlined export authorisations and digital platforms that facilitate quicker approvals.

The collaborative contribution of public and private sectors has also played a central role.

Defence Public Sector Undertakings accounted for 54.84 percent of exports in FY26, while private companies contributed 45.16 percent.

In value terms, public sector exports stood at ₹21,071 crore ($2.29 billion), while private sector exports reached ₹17,353 crore ($1.89 billion).

The growth within the public sector has been particularly notable, with exports increasing by 151 percent year-on-year.

Meanwhile, private sector participation has continued to expand steadily, reflecting a broadening industrial base.

In FY26, the country supplied equipment to more than 80 nations, indicating a widening global footprint and increasing international acceptance of Indian-made systems.

Key buyers have included countries across Asia, Europe, and Africa. Among the leading destinations historically, Myanmar accounted for 28 percent of exports between 2016 and 2025, followed by the Philippines at 19 percent and Armenia at 15 percent.

Regional partners have also played a crucial role. Sri Lanka contributed 13 percent of exports, while island nations such as Mauritius and Seychelles collectively accounted for over 14 percent.

Vietnam also reflects India’s growing engagement in Southeast Asia.

More recent export destinations include advanced markets such as the United States and France, alongside emerging partners across Africa and the Indo-Pacific region.

This diversification highlights India’s expanding role as a reliable supplier in both strategic and commercial defence relationships.

India’s defence export basket is characterised by a wide range of products, spanning both high-value platforms and specialised components. Naval systems have emerged as the dominant category, accounting for 55 percent of total exports between 2016 and 2025.

These include patrol vessels, offshore platforms, and other maritime systems designed for surveillance and coastal security.

The prominence of naval exports reflects India’s strong shipbuilding capabilities and the demand for maritime solutions among partner countries.

Sensors and surveillance equipment accounted for 9 percent of exports, highlighting India’s growing expertise in electronic and intelligence systems.

The ability to export both complete systems and sub-systems has enabled deeper integration into global supply chains.

The expansion of this exports has been accompanied by a steady increase in the number of registered exporters. In FY26, the number rose to 145 from 128 in the previous year, marking a growth of 13.3 percent.

This increase reflects a broader participation of domestic firms, including small and medium enterprises, in the defence manufacturing ecosystem.

The growing involvement of private players has contributed to innovation, efficiency, and competitiveness within the sector.

The rise in exports over the past five years has been particularly pronounced, with figures nearly tripling during this period.

This sustained growth points to the strengthening of domestic capabilities and the increasing alignment of Indian products with global standards.

India’s ability to supply advanced systems to a diverse range of countries highlights its emergence as a credible and competitive player in the international defence market.

The combination of technological advancement, policy support, and industrial growth has created a foundation for sustained expansion.

The FY26 export figures mark a defining moment in India’s journey. The transformation reflects a broader shift in India’s economic and strategic positioning, where domestic manufacturing capabilities are increasingly aligned with global demand.