In April 2024, and in a first, India delivers BrahMos supersonic cruise missiles to Philippines

India needs $1.6 billion in defence exports within a year to meet its 2025 goal of $5 billion (₹35,000 crore at the time), according to a report from February 2025. As of March 2024, the country had achieved over ₹21,000 crore in defence exports. At current exchange rates, the $5 billion target would translate to over ₹43,000 crore.

Defence Production and Export Promotion Policy (DPEPP) 2020: This policy was introduced to propel India’s defence exports to ₹35,000 crore ($5 billion at the time) by 2025.

The push for arms exports aligns with Prime Minister Narendra Modi’s “Make in India” initiative, which seeks to reduce India’s dependence on foreign military suppliers while positioning the country as a global defence exporter.

India has set a target to achieve defence exports of ₹50,000 crore by 2029.

India's Strengths In Defence Exports

Indian systems like the Akash and BrahMos missiles are reportedly cheaper than Western and Russian alternatives, often by as much as 30% to 40%. India has transitioned from being one of the world’s largest arms importers to a growing arms exporter. Several government initiatives are in place to promote defence exports, including a liberalized FDI policy, Defence Acquisition Procedure (DAP) 2020, and the establishment of Defence Industrial Corridors (DICs).

Being relatively cheap makes India a natural choice and an alternative to China.

India's Defence Export Capabilities

Wide range of products India currently exports military hardware to 85 countries, including helicopters, naval vessels, missiles, and armoured vehicles.

Key systems being promoted Apart from BrahMos, India is actively promoting the Akash surface-to-air missile system, the Pinaka multiple rocket launcher, and the Pralay tactical ballistic missile, alongside aircraft such as the Light Combat Aircraft (LCA) TEJAS.

Major exporters Key defence exporters include Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and Goa Shipyard Limited (GSL).

Challenges And Considerations

Quality and Reliability The country’s defence manufacturing base, though growing, faces concerns over quality, reliability, and technological limitations.

Market Limitations India’s arms exports remain largely focused on developing nations, limiting its ability to compete with established global arms suppliers in high-tech military hardware.

Meeting Operational Expectations Reports indicate that some exported weapons have failed to meet operational expectations, potentially harming India’s reputation as a reliable supplier.

CNBC TV18