Will India Become Massive Defence Exporter from Importer?

Empowering India’s Defence Industry: Unleashing the Potential of Defence Exports

India’s defence exports have reached an unprecedented high, surpassing Rs 16,000 crore in the fiscal year 2022-23. This marks a remarkable growth of over ten times since 2016-17 when defence exports were recorded at Rs 1,521 crore. With an ambitious target of Rs 35,000 crore by 2024-25, India is determined to expand its presence in the global defence market.

The Ministry of Defence highlights that India’s major exports include renowned platforms such as the Akash missile, BrahMos, Pinaka, Dornier-228, thermal imagers, Advanced Towed Artillery Guns (ATAGs), radars, simulators, body armours, and mine-protected vehicles. Additionally, there is a growing demand for indigenous platforms like the Light Combat Helicopters, Aircraft carriers, and the Light Combat Aircraft (LCA) Tejas.

Notably, in the ongoing financial year 2022-2023, India’s defence exports have already reached a significant milestone, with exports expanding to over 80 countries worldwide. The list of recipient countries includes Italy, Sri Lanka, Russia, Maldives, Mauritius, Nepal, France, Egypt, Israel, Bhutan, UAE, Saudi Arabia, Ethiopia, Philippines, Poland, Spain, and Chile.

While India’s defence exports have soared, it is important to acknowledge that the country was the world’s largest arms importer between 2018 and 2022, as reported by the Stockholm International Peace Research Institute (SIPRI). However, the Indian government has made substantial efforts to prioritize indigenization and reduce dependency on imports.

Sources within the defence establishment emphasize that India is in the early stages of building a robust defence ecosystem, and over the next five to seven years, the focus will be on promoting indigenization. Currently, around 70% of defence exports are attributed to India’s private sector, with public sector enterprises also securing significant deals, ranging from BrahMos missiles to fighter jets and helicopters.

While India has shown significant progress in defence exports, it accounted for 0.2% of global arms exports during 2016-2020, making it the 24th largest exporter of major arms worldwide. In terms of the top 100 arms-producing firms, only two Indian companies, Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), were featured in SIPRI’s list. However, their sales primarily came from domestic purchases by India’s defence forces.

India’s defence exports demonstrate its growing capabilities and the government’s commitment to bolstering the country’s defence industry. With a focus on indigenization and expanding its presence in the global market, India aims to establish itself as a prominent player in the defence sector.