India’s Defence Exports Hit Record ₹38,424 Crore in FY26

India’s defence exports recorded an all-time high of ₹38,424 crore in the financial year 2025-26 with a year-over-year increase of 62.66%, as per the data provided by the Ministry of Defence.

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Union Defence Minister Rajnath Singh said the rise of ₹14,802 crore reflects growing global demand for India-made defence equipment and expanding domestic manufacturing capabilities.

Sector Contribution And Export Reach

This can be seen from the export data provided above. The data shows an even distribution of contribution from the sectors. The Defence Public Sector Undertakings accounted for 54.84% of the total exports, whereas the private sector accounted for 45.16%.

Currently, India exports defence products to over 100 countries across the world, including the United States, France, and Armenia. The export basket includes a range of equipment such as artillery systems, radars, naval platforms and aerospace components.

Growth In Domestic Defence Production

India’s defence production has also recorded steady growth in recent years. According to official data, domestic production stood at ₹1,27,434 crore in FY24, while it was only ₹46,429 crore in FY15. This is an increase of 174% over the previous figure.

The production system is still dominated by public sector units, which account for around 77% of the total production, while the private sector contributes around 23% to the production. This has increased from 21% in FY24 to 23% in FY25.

Policy Support And Budget Allocation

Over the years, the government has increased spending on the defence sector. The allocation has gone up from ₹2.53 lakh crore in FY14 to ₹6.81 lakh crore in FY26, as per the official budget numbers. The increase has been supplemented by supportive policies undertaken for the domestic manufacturing sector.

These measures are a part of the larger indigenization drive in the country, as part of the Atmanirbhar Bharat initiative.

Targets And Future Outlook

The government has targeted to reach the mark of ₹3 lakh crore in defence manufacturing and ₹50,000 crore in defence exports by the year 2029, as per the statements by the Ministry of Defence.

The latest figures in defence exports show a further expansion in the industry, both in terms of manufacturing and exports, with the participation of private players.