India’s defence industry is witnessing a major transformation, with indigenous military systems gaining strong global attention following the operational success of Operation Sindoor. The country’s defence exports have reached an all-time high of ₹38,424 crore in FY 2025–26, marking a massive 62.66% jump compared to the previous fiscal year.
The sharp rise in exports reflects a growing international shift toward Indian-made defence platforms, especially after Operation Sindoor in May 2025 demonstrated the effectiveness of several indigenous combat systems under real battlefield conditions.
Operation Sindoor Becomes Key Turning Point
Operation Sindoor, a 96-hour military conflict in May 2025, is increasingly being viewed as a defining moment for India’s defence capabilities. According to defence assessments and ministry briefings, the operation showcased India’s advanced indigenous systems during coordinated multi-domain military operations.
The mission reportedly included precision strikes on strategic targets and the deployment of systems such as the Air-Launched BrahMos missile, indigenous drone warfare assets, and advanced surveillance and air defence networks.
Officials stated that the operation validated India’s growing “sensor-to-shooter” capability, combining intelligence gathering, electronic warfare resilience, and precision strike coordination in real-time combat conditions.
Retired Air Marshal Sanjeev Kapoor described the deployment of BrahMos missiles on May 10 during the operation as a “game changer,” stating that India successfully targeted multiple Pakistani airfields within 45 minutes, significantly influencing the ceasefire discussions.
Defence Exports See Massive Global Demand
Between July 2025 and March 2026, India secured defence export orders worth nearly ₹24,000 crore. The Ministry of Defence confirmed that India now exports defence equipment to over 80 countries, while the number of registered defence exporters has also increased significantly.
Several indigenous platforms have emerged as key drivers of global demand:
- BrahMos Missile System – Gaining attention for long-range precision strike capabilities after its operational deployment.
- Akash-NG Air Defence System – Attracting interest from Africa and South America after reportedly achieving over 90% interception efficiency.
- Loitering Munitions and Drones – Strengthening India’s position in modern asymmetric warfare technology.
- Netra AEW&C System – Supporting coordinated aerial operations and surveillance in contested environments.
The demand now extends beyond individual platforms, with several nations exploring integrated defence capability packages from India.
India’s Defence Production Expands Rapidly
India’s defence manufacturing sector has also recorded major growth. According to Union Minister Dr. Jitendra Singh, defence production in the country has reached ₹1.54 lakh crore, representing a 174% increase over the past decade.
Defence exports, which stood at nearly ₹600 crore in 2014, have now crossed ₹38,000 crore, reflecting a major structural transformation in the sector.
The defence ecosystem now includes:
- Over 16,000 MSMEs
- More than 1,000 defence startups
- Strong participation from both public and private sector manufacturers
Defence Public Sector Undertakings (DPSUs) contributed nearly 55% of exports in FY 2025–26, while the private sector accounted for over 45%.
Major Defence Companies Drive Expansion
India’s major defence manufacturers continue to receive large contracts and expand production capabilities:
- HAL secured contracts for Tejas Mk1A fighter jets and Su-30MKI upgrades.
- BEL expanded radar and precision weapons partnerships, including collaborations with France’s Safran.
- BDL increased missile manufacturing capacity through new facilities.
- L&T advanced naval and armoured defence manufacturing.
- Mazagon Dock Shipbuilders continued work on submarine projects under Project 75I.
Policy Reforms Supporting Growth
Several government initiatives have played a key role in accelerating defence exports and domestic manufacturing, including:
- Production Linked Incentive (PLI) schemes
- Positive Indigenisation Lists
- Online export authorisation systems
- Corporatisation of ordnance factories
- Technology and startup support through iDEX, ADITI, and TDF programmes
The government has also increased the defence budget for FY 2026–27 to ₹6.81 lakh crore, reinforcing long-term support for domestic defence manufacturing.
India’s Global Defence Position Strengthens
Defence Minister Rajnath Singh has repeatedly stated that India is moving from being an import-dependent defence market to becoming a major global defence manufacturing and export hub.
With a target of achieving ₹50,000 crore in defence exports by FY 2029–30, India is positioning itself as a reliable supplier of combat-proven military systems and integrated defence solutions for global markets.
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