India’s defence exports rocket to Rs 38,424 cr in FY26, up by 63%. US remains top destination 

In the fiscal year 2025–2026, India’s defense exports reached an all-time high of Rs 38,424 crore, a staggering 62.66% rise. Compared to the previous fiscal year’s value of Rs 23,622 crore, this is an increase of Rs 14,802 crore. Defense Public Sector Undertakings (DPSUs) and the private sector have contributed 54.84% and 45.16%, respectively, according to information released by the Union Defence Ministry on Thursday.The DPSUs’ exports increased by 151 percent over the prior year, while private companies demonstrated their strong presence with a 14 percent growth.

DPSUs contributed Rs 21,071 crore in defense exports, while the private sector contributed Rs 17,353 crore. In the preceding fiscal year, their respective amounts were Rs 8,389 crore and Rs 15,233 crore.

“This sharp rise highlights the increasing global acceptance of Indian made defence products and the sector’s growing integration into international supply chains,” a ministry statement said.

“Apart from being a successful global partner for systems/sub-systems, India is exporting defence equipment to more than 80 countries as of FY 2025-26. The number of exporters underwent a surge to 145 from 128, a 13.3% rise from the previous fiscal,” it added.

With American businesses purchasing numerous subsystems, including fuselages from India, the US has become the largest destination for defense exports.  In 2020, the Modi administration set a lofty five-year export goal of Rs 35,000 crore ($5 billion) in defense and aerospace products and services. This was a component of the government’s strategy to reach a defense production turnover of Rs 1.75 lakh crore ($25 billion) by 2025.

According to sources in the defense establishment, India’s defense exports have been boosted by the ongoing war between Russia and Ukraine, tensions between Armenia and Azerbaijan, and the desire of other nations to update their military readiness.

Apart from lightweight torpedoes, the main exports of defense PSUs include different kinds of ammunition and fuses.  According to sources, private companies are exporting a variety of equipment, such as unmanned aerial vehicles, small guns, armored vehicles, and bulletproof vests.

The government has placed a great deal of emphasis on defense attachés to search for possibilities and increase exports as part of the defense diplomacy effort. Getting international companies to construct in India for their own markets and exports is the next stage of the ambitions.