by Dr. Jaipal Singh
Self-Reliance & Export Boom
The decade spanning 2004 to 2014 represents a foundational yet largely constrained era for Indian defense exports, during which total outbound trade stagnated at a cumulative estimate of approximately Rs.4,312 crore. The primary factor underlying these low numbers was a deeply entrenched the Congress led UPA Government’s policy paradigm that prioritized state-monopoly production through Defense Public Sector Undertakings (DPSUs) and the Ordnance Factory Board (OFB). These organizations more or less strictly functioned under a “build-to-print” licensed manufacturing model, focused almost exclusively on fulfilling the massive captive requirements of the Indian Armed Forces rather than competing in global markets for exports. Furthermore, the private sector’s participation was severely restricted by stringent licensing bottlenecks, and the lack of a structured defense export strategy meant that international sales were largely restricted only to low-to-medium technology components, basic hardware, or defensive platforms supplied to immediate maritime neighbours. The governance also suffered from an inherent “risk aversion” born out of domestic political controversies surrounding past arms procurement, creating a rigid export authorization system that, in fact, discouraged global supply chain integration.
The cumulative Defence export during ten years from 2004-05 to 2013-2014 totaled to an export value of about Rs 4312 crore. The major importing countries included Sri Lanka, Nepal, Bhutan, Mauritius, Maldives, Seychelles, Myanmar, Ecuador, Suriname, USA, UK, Israel, and other South Asian, African, global OEMs (for sub-assemblies & spares), etc. The major exports item during the same period were spares, sub-assemblies, petrol vessels, Small arms, ammunition, transport vehicles, basic hardware, coastal surveillance systems, naval radars and sensors, tactical vehicles, ammunition, Dhruv ALH, Airframe & Aero-structures, electronics, simulators, protective gear, avionic component, bulletproof jackets, Naval sensors, Spares, and so on.
This period of modest performance served as a critical baseline that exposed the vulnerabilities of a import-dependent defense ecosystem, ultimately necessitating a complete overhaul of national strategy post-2014. The introduction of the “Make in India” philosophy and the “Atmanirbhar Bharat” (Self-Reliant India) framework by Narendra Modi led NDA Government represented a definitive shift in the state priorities i.e. moving away from inward-looking consumption to aggressive, outbound export orientation. Recognizing that strategic autonomy is impossible without technology ownership, the government systematically dismantled legacy barriers by introducing Positive Indigenisation Lists, streamlining export clearance processes through the Open General Export License (OGEL), and actively integrating private enterprises into global manufacture and supply networks. By transitioning from an erstwhile fragmented supplier of sub-assemblies to a confident exporter of sophisticated, complete weapon systems like the BrahMos supersonic missile and Pinaka multi-barrel rocket launchers, the post-2014 policies converted the operational lessons of the 2004–2014 period into a springboard for India’s emergence as a competitive global defense hub.
The following Table provides a detailed year-by-year breakdown of India’s transition from an importer to a significant global exporter. It captures the massive surge in export value from ?1,941 crore in 2014-15 to a projected over ?38,000 crore by 2025-26, besides also highlighting the shift from exporting small components to sophisticated platforms like the BrahMos missile and Pinaka rocket systems.
Table : Defence Export 2014 – 2026 (Value of Rs. in Crore)
Financial Year
Export Value
Major Importing Nations
Major Export Items
2014-15
1,941
Mauritius, Sri Lanka, UAE
Patrol Vessels, Spares
2015-16
2,059
Vietnam, Nepal, Oman
Protective Gear, Spares
2016-17
1,522
Mauritius, Maldives, UK
Interceptor Boats, Avionics
2017-18
4,682
Afghanistan, Myanmar, USA
Helicopter parts, Radars
2018-19
10,746
USA, Israel, Sri Lanka
Bulletproof jackets, Airframe parts
2019-20
9,116
USA, Singapore, UK
Aero-structures, Electronics
2020-21
8,435
USA, France, Israel
Small arms, Precision components
2021-22
12,815
Philippines, USA, Armenia
BrahMos (Initial), Advanced Artillery
2022-23
15,920
Armenia, UAE, Italy
Pinaka MLRS, Swathi Radar
2023-24
21,083
Armenia, Philippines, Guyana
BrahMos, Dornier-228, Artillery
2024-25
23,622
Armenia, South East Asia, Middle East
LCA Tejas (Potential), BrahMos, Pinaka
2025-26
38,424
Africa, SE Asia, Central Asia
Advanced Combat Platforms, Missiles
Data source: Ministry of Defence Annual Reports
Note: Assistance taken from AI tools for compiled data from the Ministry of Defence annual reports. Figures for 2024-25 in this table and subsequently 2025-26 are largely based on current order book trajectories. Importing nations and import items are illustrative and not all inclusive.
From the aforesaid details, we can safely derive that the early phase (2014-17) was still influenced by “build-to-print” components and small-scale maritime equipment usually for the immediate neighbors such as Mauritius, Sri Lanka and Nepal, etc. Then came the inflection point (2017-21) marking the advent of private sector contribution in significant ways and Indian entry into global aerospace supply chains with importing countries like USA and Israel. Since 2022, India is now recognized to be capable of producing high-end strategic defence assets. The BrahMos deal with the Philippines and the Pinaka deal with Armenia represent a “new normal” where India competes with traditional global defense giants. As the order book is growing by 2025-26, the focus is now also shifting toward the Light Combat Aircraft (Tejas), Advanced Towed Artillery Gun Systems (ATAGS), and sophisticated Electronic Warfare suites.
Success story of the “Make in India” in defence could be adjudged with some of the following indicative illustrations:
(i) India’s indigenous defense production hit a record Rs.1.27 lakh crore during the Financial Year 2023-24.
(ii) From merely Rs.686 crore in 2013-14, the defense exports surged to over Rs.22,600 crore in Financial Year 2024-25, about 33-fold increase.
(iii) The countries like Argentina, Egypt, and Philippines have expressed keen interest in LCA Tejas, a 4.5 generation fighter jet.
(iv) The Philippines had entered into a $375 million deal with India in 2022 for the shore based anti-ship BrahMos missile.
(v) Pinaka Multi-Barrel Rocket Launcher has been exported to Armenia in a multi-million dollar deal, proving Indian artillery’s global competitiveness.
(vi) India’s Swathi Weapon Locating Radar and Advanced Towed Artillery Gun System (ATAGS) are reckoned as alternatives to Western and Russian systems.
(vii) Export of offshore patrol vessels and fast interceptor boats to countries like Mauritius, Maldives, and Sri Lanka.
In short, India has successfully transitioned from being just a buyer to a seller in global market. The private sector now contributes significantly to exports, with Indian firms like Tata, Bharat Forge, and L&T becoming integral parts of global supply chain.
Epilogue
India’s transition from a highly constrained, “build-to-print” import-dependent nation to a rapidly indigenizing defense exporter marks one of the most significant strategic pivots in its modern history. Over the past eleven years, structural overhauls—such as the implementation of Positive Indigenisation Lists, the corporatization of the Ordnance Factory Board, and the preferential allocation of up to 75% of the modernization budget to domestic entities—have fundamentally reshaped the industrial landscape. The tangible outcomes of these reforms are visible in record-breaking production values and an export trajectory that has expanded exponentially from Rs.686 crore in FY 2013-14 to over Rs.21,000 crore. By moving away from foreign-vetoed assembly models to locally designed and owned intellectual property, India has successfully delivered frontline strategic assets like the BrahMos supersonic missile system, the Pinaka MLRS, and advanced combat platforms to the global market.
Looking ahead, the futuristic outlook for India’s defence sector points toward an unprecedented growth, driven by the dual focus on scaling technological capabilities and deepening global partnerships. As the nation eyes an ambitious defense export target of Rs.50,000 crore by the end of the decade, the domestic ecosystem is aggressively shifting toward the next-generation frontiers, including autonomous drone swarms, counter-unmanned aerial systems (C-UAS), and advanced electronic warfare suites. The established defense industrial corridors in Uttar Pradesh and Tamil Nadu are rapidly maturing into robust high-tech hubs, successfully bridging the gap between state-backed public entities and agile private startups under the Innovations for Defence Excellence (iDEX) framework. This integrated supply chain will allow India to smoothly transition from fulfilling domestic operational requirements to capturing vital market share particularly in the developing countries of Southeast Asia, Africa, the Middle East, and Latin America.
In a nutshell, India’s defence ecosystem is gradually but swiftly moving toward a state of mature self-reliance where domestic innovation acts as the primary guarantee of its national sovereignty and integrity in the obtaining security environment and threat perceptions. As long-term programmes like the LCA Tejas Mk2, the Advanced Medium Combat Aircraft (AMCA), and completely indigenous heavy aero-engines progress toward active deployment, the historical reliance on critical foreign components will minimize in the years ahead. By securing its own technology lifelines and acting as a trusted, cost-competitive “Net Security Provider” for friendly foreign nations, India is transforming slowly but decisively its defence industrial base from a just manufacturing sector for country’s domestic needs into a core pillar of a reliable supply chain asserting its global geopolitical influence and economic power. (Courtesy:www.boloji.com)
(The writer is a former civil servant and held important assignments in Defense and Infrastructure (Power & Energy) Sectors for more than three decades)
