India’s emergence as Europe’s third-largest arms exporter signals a major shift in the country’s defence manufacturing capabilities and its growing influence in the global arms market. Driven by rising European demand for military supplies under the European Union’s ‘ReArm Europe’ initiative and the expansion of indigenous production, India’s defence exports have reached a record ₹38,424 crore, equivalent to around 3.6 billion euros. The milestone reflects the growing international acceptance of Indian-made defence equipment and the government’s sustained push to transform India into a global hub for defence manufacturing and exports.
Defence Secretary Rajesh Kumar Singh highlighted this progress while interacting with media persons, attributing the rise in exports to increasing international demand and the substantial expansion of India’s indigenous defence production capacity. The development also underscores how changing geopolitical circumstances are creating new opportunities for Indian manufacturers to strengthen their presence in strategically important markets.
A major factor behind the growing demand for Indian defence products in Europe is the requirement for standard ammunition, artillery shells and other ammunition of varying calibres. As European countries seek to replenish stocks and strengthen their military capabilities, Indian manufacturers are increasingly positioned to contribute to international supply chains. The demand presents an opportunity for India to establish itself as a reliable supplier at a time when defence preparedness and the availability of essential military supplies have assumed greater importance.
However, India’s expanding role in the European arms market is not merely a consequence of rising overseas demand. It also reflects a broader shift in the country’s defence industrial policy, which has increasingly emphasised domestic production, technological development and export-oriented manufacturing. The expansion of manufacturing capacity over the past decade has created a more diverse industrial base, enabling Indian companies to supply products ranging from ammunition and artillery systems to personal protection equipment.
According to Singh, India’s defence manufacturing ecosystem now includes 16 major public sector companies, approximately 840 large and medium-sized private enterprises, and nearly 17,000 small enterprises, including start-ups. This extensive network reflects the growing participation of private industry and smaller businesses in a sector that was traditionally dominated by government-owned organisations.
The expanding industrial base is also helping India diversify its export portfolio. Indian defence products now reach more than 80 countries, with exports covering artillery systems, ammunition, small arms, helmets, bulletproof jackets and other tactical equipment. This diversification is important because a wider range of products and markets can reduce dependence on a limited number of buyers while creating opportunities for manufacturers to scale up production.
The government’s emphasis on domestic procurement is another important pillar of this strategy. Singh said the objective is to ensure that 75 per cent of annual defence capital expenditure, estimated at between 20 billion and 25 billion dollars, is spent within the country, with priority given to equipment designed, developed and manufactured in India.
Such a policy can help strengthen the domestic industrial base by providing manufacturers with greater visibility over future demand. Consistent procurement orders can encourage companies to invest in production facilities, improve technological capabilities and develop the capacity required to compete in international markets. A stronger domestic market can also help manufacturers achieve economies of scale, making their products more competitive in terms of cost, quality and delivery.
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