India's defence exports reached a record high of Rs 38,424 crore in FY 2025-26, a 62.66% increase from the previous year.
Defence Public Sector Undertakings (DPSUs) contributed 54.84% and the private sector 45.16% to the total defence exports.
DPSU exports surged by 151%, while private firms saw a 14% increase compared to the previous fiscal year.
India is exporting defence equipment to over 80 countries as of FY 2025-26, with the number of exporters rising to 145.
Detailed Insights:
The private sector accounted for Rs 17,353 crore worth of defence exports, while DPSUs contributed Rs 21,071 crore in FY 2025-26.
The increase in defence exports indicates a roughly threefold rise over the last five years, reflecting the growing global acceptance of Indian-made defence products.
The Department of Defence Production has streamlined defence export regulatory processes through a revamped online portal and simplified Standard Operation Procedure for authorisations.
The Ministry of Defence (MoD) has fully utilized its capital outlay of Rs 1.84 lakh crore for defence services in FY 2025-26.
The MoD accorded Acceptance of Necessity (AoN) for 109 proposals amounting to Rs 6.81 lakh crore in FY 2025-26, compared to 56 proposals worth Rs 1.76 lakh crore in FY 2024-25.
Capital procurement contracts for a total of 503 proposals amounting to Rs 2.28 lakh crore were signed by the MoD in FY 2025-26.
Key Concepts Involved:
Defence Exports: The sale and supply of military equipment and technology from one country to another.
DPSUs (Defence Public Sector Undertakings): Government-owned companies involved in the production of defence equipment and systems.
Acceptance of Necessity (AoN): A crucial step in India's defence procurement procedure, signifying the initial approval for acquiring specific defence equipment.