India’s defence exports reached INR 210.83 billion in the financial year 2023-24, marking a significant increase from INR 6.86 billion in 2013-14, according to a press release from the Ministry of Defence. The country now exports military equipment to over 100 nations, with the United States, France, and Armenia among the key buyers. Items exported include bulletproof jackets, Dornier Do-228 aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.
Policy measures have been introduced to encourage domestic manufacturing and increase private sector participation. The Defence Acquisition Procedure (DAP) 2020 prioritises procurement from local sources, with 75% of the current financial year’s modernisation budget—amounting to INR 1.11 trillion (USD 13.3 billion)—allocated to domestic industries. Additionally, the Positive Indigenisation Lists (PILs) restrict the import of specific defence items, with over 3,000 out of 5,500 listed items already being produced domestically as of February 2025.
The government has set a target of INR 500 billion in defence exports by 2029. The expansion of local production and policy-driven support for domestic procurement are expected to further reduce reliance on imports while increasing the international presence of Indian defence manufacturers.