India’s defence industry is rapidly evolving into a global powerhouse as the country’s defence exports surged to an all-time high of Rs 21,083 crore in FY24 A 32.5 per cent increase from the previous year’s Rs 15,920 crore, as per a report. According to the Nuvama report, over the past decade, India’s defence exports have grown 31 times, solidifying its presence in the global market and increasing international demand.
The Indian government has set an ambitious target of Rs 50,000 crore in defence exports by FY29, reflecting its commitment to strengthening the sector. In FY25 alone, exports are projected to reach Rs 20,300 crore. This helped in reinforcing India’s position as a key player in the international defence supply chain.
One of the biggest catalysts for this growth is the rising demand from Europe. With European nations facing manufacturing constraints and workforce shortages, India is emerging as a dependable supplier of defence equipment. The first wave of European defence orders is anticipated as early as the first half of FY26. Thereby opening new avenues for Indian defence manufacturers.
Domestically, the Indian government is taking significant steps to accelerate growth in the sector, the report said. A large-scale defence procurement worth Rs 1.5 trillion is planned by March 2025, addressing concerns over slow order placements in FY25. This move is expected to boost Indian defence stocks and enhance the country’s military capabilities, it added. Meanwhile, shifting global defence dynamics are creating additional opportunities for India.
The United States’ decision to cut military aid to Ukraine has highlighted NATO’s heavy dependence on American defence funding. With the US contributing nearly 70 per cent of NATO’s total defence expenditure over the past decade, European nations are now under pressure to bolster their defence systems. This transition is expected to drive further demand for Indian defence products, according to Nuvama.
