India’s defence exports jump 63% to ₹38,424 crore in FY26

India’s defence exports hit a record ₹38,424 crore in FY26, marking a sharp 62.66% increase from ₹23,622 crore in the previous fiscal, according to government data released on Wednesday.

The strong growth was driven by a surge in shipments from Defence Public Sector Undertakings (DPSUs), whose exports rose 151% year-on-year to ₹21,071 crore. The private sector also expanded its footprint, with exports rising 14% to ₹17,353 crore.

DPSUs accounted for 54.84% of total exports, while private companies contributed 45.16%.

Union Defence Minister Rajnath Singh praised the performance, saying India is steadily moving towards becoming a global hub for defence manufacturing.

“This big jump of ₹14,802 crore in defence exports reflects the growing global trust in India’s indigenous capabilities and advanced manufacturing strength. With DPSUs contributing 54.84% and private industry contributing 45.16%, this milestone showcases the power of a collaborative and self-reliant defence ecosystem,” Singh wrote on X.

Defence exports nearly tripled in 5 years

The latest figures show that India’s defence exports have nearly tripled over the past five years, reflecting growing global acceptance of domestically manufactured equipment and systems.

India is now exporting defence products to more than 80 countries, while the number of registered exporters increased to 145 in FY26 from 128 a year ago.

Officials said policy support has played a key role in driving growth. Measures such as simplifying export procedures, streamlining approvals through an online portal, and easing compliance requirements have helped improve the ease of doing business for defence exporters.

Push for higher domestic production

The government has been actively pushing for higher domestic production and exports as part of its broader strategy to reduce import dependence and strengthen India’s position in global defence supply chains.

The sharp rise in exports also signals increasing integration of Indian firms into international supply networks, both as suppliers of complete systems and key sub-components.

Still heavy reliance on imports

However, India continues to be one of the world’s largest importers of defence equipment, though reliance on imports has been gradually declining in recent years.

The country still depends on foreign suppliers for high-end platforms, advanced technologies, and critical components, especially in areas such as fighter jets, engines, and sophisticated weapon systems. However, government efforts to boost domestic manufacturing through initiatives such as indigenisation lists, higher budgetary allocation for local procurement, and support for private sector participation have started to curb imports.