India’s Defence Exports Soar to Rs 23,622 Crore, Targeting USA, France, and Armenia

India’s weapon exports, totaling Rs 23,622 crore (about a quarter of the country’s annual health expenditure), are rapidly expanding, notably among the USA, France, and Armenia. Despite the USA and France being top global arms exporters, they turn to India for subsystems, software, and electronics, as confirmed by a Society of Indian Defence Manufacturers-Asia Group report for Defence Minister Rajnath Singh. Armenia has imported Akash air defense systems, Pinaka rocket launchers, and 155mm artillery from India. Other customers include Myanmar, Sri Lanka, Mauritius, and Seychelles, with India’s cost advantage—155mm shells cost $300–400 versus Europe’s $3,000. This advantage provides significant export growth opportunities.

• The report, authored by Colonel Shailender Arya and Anshita Shukla, highlights surging demand for weaponry, driven by conflicts such as those between Russia and Ukraine, and in the Middle East.
• European nations are boosting defense budgets, with all NATO members committing to spend two percent of their GDP on defense.
• Buyers are seeking reliable supply chains, and India’s self-reliance initiatives meet this need.
• Importantly, buyers in Southeast Asia, Africa, and Central Asia are moving away from Soviet-era weapons acquired before 1991. They have geopolitical reservations regarding Western and Chinese platforms, making India a practical alternative supplier.

According to the report, Indian defense products with strong export potential include:

• Aircraft and helicopters, including the Tejas light combat aircraft, Dhruv advanced light helicopter, Prachand light combat helicopter, multi-purpose light transport aircraft, and the single-engine light utility helicopter.
• Missiles such as the Akash air-defense system (already exported to Armenia), BrahMos (delivered to the Philippines), air-to-air missiles, and anti-tank missiles.
• Armored vehicles and artillery, including the Arjun main battle tank, bridge-layer tank, armored engineer reconnaissance vehicle, Vajra 155mm self-propelled gun, Pinaka multi-barrel rocket launcher, and the advanced towed artillery gun system (ATAGS).
• Naval equipment like the Offshore Patrol Vessel, which is provided to several Indian Ocean island nations, patrol boats, interceptor boats, missile boats, corvettes, and several types of torpedoes for friendly countries.
• Other offerings include diverse radar systems, bulletproof jackets, parachutes, specialized alloys, and encryption and voice analysis devices.

The report also recommends that the defense ministry develop reciprocal supply chains. For example, a swap with Brazil could involve Embraer transport aircraft for Tejas fighter jets, or exchanges at the component or subsystem levels.

Global outreach is vital. Establishing offices for Indian defense public and private sector companies worldwide could boost exports. Suggested locations are Egypt, South Africa, Algeria, Ethiopia, Nigeria, Brazil, Guyana, Peru, Argentina, Chile, Kazakhstan, Germany, Poland, the Philippines, and Singapore. India has a line of defense credit for many countries, and maintaining strong government contact is advised.

The most significant export advancement could be a reciprocal defense agreement with the USA. The USA’s defense budget is $850 billion, and a bilateral agreement would enable Indian firms to join US supply chains. Currently, US law limits defense procurement to US or “qualifying countries.” If an agreement is reached, India could become a qualifying country, benefiting both sides—similar to how Indian pharmaceutical companies have lowered US healthcare costs. Indian components could help reduce costs through competitive pricing.