India’s Defence Exports Surge to Record High in FY 2024-25

India’s defence exports have reached a record high of Rs 23,622 crore (US$ 2.76 billion) in the Financial Year (FY) 2024-25, marking a 12.04% increase compared to the previous fiscal year. This growth highlights the country’s transformation into a global defence exporter, reducing its dependence on imports and strengthening its self-reliance. The surge has been driven by significant contributions from Defence Public Sector Undertakings (DPSUs) and private industry players, aided by the Indian government’s strong policy measures. The rise in export authorizations and the number of defence exporters also demonstrates the increasing demand for Indian-made defence products in the global market.

Key Highlights of India’s Defence Export Growth

Record Growth in Defence Exports

• India’s defence exports reached Rs 23,622 crore (US$ 2.76 billion) in FY 2024-25.
• This marks a 12.04% growth over the Rs 21,083 crore exports in FY 2023-24.
• The increase of Rs 2,539 crore highlights the growing global acceptance of Indian defence products.

Contribution of Public and Private Sectors

• DPSUs recorded an impressive 42.85% growth, contributing Rs 8,389 crore in FY 2024-25, up from Rs 5,874 crore in the previous year.
• The private sector contributed Rs 15,233 crore, showing a marginal rise from Rs 15,209 crore in FY 2023-24.
• The increase in DPSU exports signifies a shift in the defence sector towards indigenous production and export competitiveness.

Expansion of Defence Exports Market

India exported a wide range of defence products, including,

• Ammunition and arms
• Sub-systems and full systems
• Parts and components
• Defence exports were shipped to around 80 countries, reinforcing India’s global presence in defence manufacturing.

Rise in Export Authorisations and Defence Exporters

• The Department of Defence Production issued 1,762 Export Authorisations in FY 2024-25.
• This is a 16.92% increase compared to 1,507 authorisations in FY 2023-24.
• The total number of registered defence exporters increased by 17.4%, reflecting the sector’s expansion.

Government Policy Reforms Boosting Defence Exports

The Indian government has implemented multiple policy reforms to streamline defence exports, including,

• Simplification of industrial licensing procedures.
• Removal of parts and components from the licensing regime, easing export restrictions.
• Extension of the validity period for industrial licenses, providing long-term benefits to manufacturers.
• Simplified process for granting export authorizations, improving efficiency in approvals.
• These reforms have significantly boosted India’s defence exports, making the country a key player in the global defence market.

India’s Vision for Future Defence Exports

• Under Prime Minister Narendra Modi’s leadership, India is moving towards its target of Rs 50,000 crore in defence exports by 2029.
• This aligns with the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative, aimed at reducing import dependency and strengthening domestic defence production.