India’s Defence Exports Reach Record High in 2025

India’s defence exports have achieved a remarkable milestone in the financial year 2024-25, reaching ₹23,622 crore. This marks a 12.04% increase from the previous year. The Union Ministry of Defence (MoD) announced this achievement on April 1, 2025. Defence Minister Rajnath Singh brought into light the government’s commitment to boost defence exports to ₹50,000 crore by 2029.

Growth in Defence Exports

The defence exports have surged by ₹2,539 crore compared to FY 2023-24. In the previous fiscal year, exports were ₹21,083 crore. This growth is attributed to both Defence Public Sector Undertakings (DPSUs) and the private sector. DPSUs recorded a substantial increase of 42.85% in their exports.

Contribution of Public and Private Sectors

In FY 2024-25, the private sector contributed ₹15,233 crore while DPSUs contributed ₹8,389 crore. The figures for the previous fiscal year were ₹15,209 crore for the private sector and ₹5,874 crore for DPSUs. This shows a robust performance from both sectors in enhancing India’s defence capabilities.

Export Authorisation and Policy Reforms

The Department of Defence Production has streamlined the export authorisation process. In FY 2024-25, 1,762 export authorisations were issued, up from 1,507 the previous year. This represents a 16.92% growth. The number of exporters also increased by 17.4%, indicating a growing interest in defence exports.

Shift Towards Self-Reliance

India is transitioning from being an import-dependent military force to one focused on self-reliance. The government has implemented various policy reforms to support this shift. These reforms include simplifying the industrial licensing process and extending the validity of licences.

Wide Range of Exported Items

In the last fiscal year, India exported a diverse range of defence items. These included arms, ammunition, subsystems, systems, and parts to approximately 80 countries. This diversification is crucial for enhancing India’s global defence trade footprint.

Future Prospects

The government aims to boost defence exports by 2029. The target is set at ₹50,000 crore, which reflects India’s ambition to become a leading player in the global defence market. Continuous policy support and industry collaboration will be essential for achieving this goal.

Questions for UPSC:

1. Critically analyse the impact of self-reliance on India’s defence exports.
2. What are the key policy reforms implemented to boost the Indian defence industry? Discuss their significance.
3. Estimate the potential challenges India might face in achieving the defence export target of ₹50,000 crore by 2029.
4. Point out the role of the private sector in enhancing India’s defence capabilities and exports.

Answer Hints:

1. Critically analyse the impact of self-reliance on India’s defence exports.

1. Self-reliance reduces dependency on foreign imports, boosting local production.
2. Encourages innovation and development of indigenous technologies.
3. Strengthens national security by enhancing domestic capabilities.
4. Increases employment opportunities within the defence sector.
5. Facilitates better control over supply chains and reduces vulnerability during geopolitical tensions.

2. What are the key policy reforms implemented to boost the Indian defence industry? Discuss their significance.

1. Simplification of the industrial licensing procedure to encourage investment.
2. Removal of parts and components from the licensing regime to streamline production.
3. Extension of license validity to enhance operational flexibility for manufacturers.
4. Introduction of a dedicated portal for export authorisation processing for efficiency.
5. These reforms collectively enhance competitiveness and attract foreign collaboration and investment.

3. Estimate the potential challenges India might face in achieving the defence export target of ₹50,000 crore by 2029.

1. Global competition from established defence exporters like the USA and Russia.
2. Technological challenges in developing advanced defence systems domestically.
3. Regulatory hurdles and bureaucratic delays in the export authorisation process.
4. Market access issues in certain countries due to geopolitical factors.
5. Dependence on a stable supply chain for critical components and materials.

4. Point out the role of the private sector in enhancing India’s defence capabilities and exports.

1. The private sector contributes to innovation and technology advancements.
2. Increased investment in R&D leads to the development of indigenous defence products.
3. Private firms enhance competition, driving down costs and improving quality.
4. Collaboration with DPSUs can lead to more efficient production and operational synergies.
5. Private sector participation diversifies the defence export portfolio, reaching more global markets.