India has become Europe’s third-largest arms exporter, with defence exports reaching a record ₹38,424 crore, driven by expanding domestic manufacturing, ammunition demand and international partnerships.
India’s defence exports have reached a record ₹38,424 crore, equivalent to approximately €3.6 billion, reflecting the country’s growing role as an international supplier of military equipment and components.
Speaking to journalists on Friday, Defence Secretary Rajesh Kumar Singh highlighted the sharp increase in India’s defence exports and the country’s growing presence in European markets.
He attributed the rise in exports to demand for standard ammunition, artillery shells and ammunition of different calibres. European procurement requirements associated with the “Rearm Europe” initiative have created opportunities for Indian manufacturers to supply military products.
The record export value also reflects the expansion of India’s domestic defence production capabilities and its efforts to establish stronger international supply relationships.
India’s defence manufacturing ecosystem has grown considerably over the past decade, supported by public sector enterprises, private companies, smaller businesses and startups.
According to Singh, the industry includes 16 major public sector companies, approximately 840 large and medium-sized private enterprises, and around 17,000 small businesses, including startups.
This broad industrial base has helped expand production capacity and improve the range of defence products manufactured within the country.
The Defence Secretary also highlighted the scale of domestic defence sales, which he placed at approximately €17 billion. The expanding manufacturing ecosystem is becoming increasingly important as India seeks to serve both domestic requirements and international customers.
India now exports defence products to more than 80 countries, according to the Defence Secretary.
The country's export portfolio extends beyond artillery systems and ammunition to include tactical equipment such as helmets and bulletproof jackets, as well as small arms and other military components.
Singh noted that international buyers, particularly in Southeast Asia, are involved in procurement discussions covering a wide range of defence products. These include different types of small arms, artillery gun systems and other military equipment.
The diversity of products and export destinations demonstrates India's efforts to expand its defence industry beyond traditional domestic procurement and establish a stronger position in international markets.
The government is also seeking to ensure that a substantial share of India's annual defence capital expenditure remains within the domestic economy.
According to Singh, the government aims to direct around 75% of annual defence capital expenditure, estimated at approximately $20 billion to $25 billion, towards domestic procurement.
Priority is given to IDDM products, meaning equipment that is indigenously designed, developed and manufactured. The policy supports domestic technological capabilities and aims to reduce dependence on foreign suppliers.
Strengthening indigenous production is also intended to improve India's ability to meet military requirements, expand manufacturing capacity and respond to international demand.
India historically relied heavily on Russia for military equipment. Although Russian-origin systems continue to account for a significant portion of the country's existing defence inventory, Singh said India's dependence has declined as procurement relationships have diversified.
France has become an important defence partner, while Israel also accounts for a substantial share of India's defence imports. Singh placed the shares of France and Israel at approximately 15% each, following Russia.
India's expanding engagement with European countries reflects a broader effort to strengthen strategic partnerships and diversify its defence supply chains.
The Defence Secretary also highlighted his recent visits to Greece and Cyprus, describing them as strategically aligned partners with potential to deepen defence cooperation.
India intends to participate more actively in Europe's defence procurement market, including through joint ventures rather than relying exclusively on direct exports.
According to Singh, Indian companies could establish joint ventures in European countries to access government procurement programmes. Similarly, European companies could establish partnerships in India to participate in its domestic defence market.
Such arrangements could support technology collaboration, improve market access and create opportunities for manufacturers on both sides.
Joint ventures may also help Indian companies build stronger connections with European defence supply chains while enabling European partners to benefit from India's manufacturing capabilities and expanding industrial base.
Conclusion
India's emergence as Europe's third-largest arms exporter marks a significant development in its defence manufacturing and export ambitions. Record exports of ₹38,424 crore, an expanding domestic industrial base and stronger international partnerships are helping the country increase its global presence. Continued investment in indigenous design, production capacity and joint ventures could further strengthen India's role in international defence supply chains.