GS 3: EconomyGS 2: GovernanceGS 3: Internal Security

India's defence exports rose by 62.66% in '25-26 to reach all-time high of Rs 38,424 cr, Pg10

India's defence exports surge 62.66% to record Rs 38,424 crore in FY26, driven by private sector growth.

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Key Highlights:

  • 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.
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