{"id":70784,"date":"2026-04-03T18:10:26","date_gmt":"2026-04-03T12:40:26","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=70784"},"modified":"2026-04-03T18:11:31","modified_gmt":"2026-04-03T12:41:31","slug":"india-defence-exports-growth-2025-26","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-04-2026\/india-defence-exports-growth-2025-26","title":{"rendered":"India\u2019s Defence Exports Increased by 62.66% in 2025-26"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Defence<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Defence exports<\/strong> have reached an all-time high of Rs 38,424 crore in the financial year 2025-26, marking an<strong> increase of 62.66% over the previous fiscal year.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Highlights<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Defence Public Sector Undertakings (DPSUs) and the private sector have contributed <strong>54.84% and 45.16% respectively.<\/strong><\/li>\n\n\n\n<li>The DPSUs\u2019 exports surged by <strong>151% <\/strong>compared to the previous year while private firms recorded an increase of <strong>14%.<\/strong><\/li>\n\n\n\n<li><strong>The sharp rise highlights<\/strong> the increasing global acceptance of Indian made defence products and the sector\u2019s growing integration with the international supply chains.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is <strong>exporting defence equipment to more than 80 countries<\/strong> as of FY 2025-26.<\/li>\n\n\n\n<li><strong>Defence Budget: <\/strong>The defence budget has seen a steady rise, growing from <strong>\u20b92.53 lakh crore in 2013\u201314 to \u20b96.81 lakh crore in 2025\u201326.<\/strong><\/li>\n\n\n\n<li><strong>India targets \u20b93 lakh crore in defence production by 2029, <\/strong>reinforcing its position as a global defence manufacturing hub.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Defence Indigenisation Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strategic Autonomy &amp; National Security: <\/strong>Reduces dependence on foreign suppliers, especially during crises and geopolitical tensions.<\/li>\n\n\n\n<li><strong>Addressing Capability Gaps: <\/strong>India faces complex security challenges across borders and in the Indian Ocean Region (IOR). Modernisation is required to replace ageing platforms in the Army, Navy, and Air Force.<\/li>\n\n\n\n<li><strong>Reducing Import Bill &amp; Promoting Economic Efficiency: <\/strong>India is among the world\u2019s largest arms importers, indigenous production lowers costs in the long run, reduces foreign exchange outflow, and strengthens the domestic defence economy.<\/li>\n\n\n\n<li><strong>Boosting Domestic Defence Industrial Base: <\/strong>Indigenisation stimulates innovation and growth of DPSUs, MSMEs, and private industry.<\/li>\n\n\n\n<li><strong>Faster Procurement &amp; Operational Readiness: <\/strong>Domestic manufacturing shortens procurement cycles and ensures timely delivery.<\/li>\n\n\n\n<li><strong>Improved Customisation &amp; Adaptability: <\/strong>Indigenous platforms can be tailored to Indian terrain (Himalayan high-altitudes, deserts, maritime zones) which allows continuous upgrades to meet evolving threat environments.<\/li>\n\n\n\n<li><strong>Technology Sovereignty: <\/strong>Developing indigenous technologies ensures freedom in design, production, and future upgrades. It also prevents vulnerability due to sanctions, supply chain disruptions, or technology denials.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Defence Acquisition &amp; Indigenisation Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>DAP 2020 with Focus on Indian-IDDM:<\/strong> It gives the highest priority to the <strong>\u2018Buy (Indian\u2013Indigenously Designed, Developed and Manufactured)\u2019 category<\/strong> to ensure that major defence purchases are made from Indian sources.<\/li>\n\n\n\n<li><strong>Simplified \u2018Make\u2019 Procedure:<\/strong> Encourages Indian industry to design, develop, and manufacture defence products, reducing import dependence.\n<ul class=\"wp-block-list\">\n<li><strong>Under Make-I,<\/strong> the government funds up to 70% of development costs and reserves certain projects for MSMEs.\u00a0<\/li>\n\n\n\n<li><strong>The Make-II category <\/strong>(industry-funded) offers relaxed eligibility, minimal paperwork, and accepts proposals from industry or individuals.\u00a0<\/li>\n\n\n\n<li><strong>So far, 62 projects <\/strong>for the Army, Navy, and Air Force have received \u2018Approval in Principle\u2019.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Liberalised FDI in Defence: <\/strong>Foreign Direct Investment limit raised to <strong>74%<\/strong> via automatic route for new defence industrial licences, and up to <strong>100% by government approval<\/strong> in cases involving access to advanced technology.<\/li>\n\n\n\n<li><strong>Defence Industrial Corridors: <\/strong>Two corridors, Uttar Pradesh Defence Industrial Corridor (UPDIC) and Tamil Nadu Defence Industrial Corridor (TNDIC), are the lifelines of this transformation.\n<ul class=\"wp-block-list\">\n<li>In 2025, they have attracted investments worth over \u20b99,145 crore, with 289 MoUs signed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Defence Testing Infrastructure Scheme (DTIS):<\/strong> DTIS aims to boost indigenisation by providing financial assistance for setting up<strong> eight Greenfield testing and certification facilities<\/strong> in the aerospace and defence sector.\n<ul class=\"wp-block-list\">\n<li><strong>Seven test facilities <\/strong>are already approved in areas like unmanned aerial systems, electronic warfare, electro-optics, and communications.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Boosting Innovation:<\/strong><strong>iDEX &amp; TDF Innovations for Defence Excellence (iDEX), launched in 2018,<\/strong> supports startups, MSMEs, academia, and innovators with grants and funding to develop technologies for defence and aerospace.\n<ul class=\"wp-block-list\">\n<li><strong>Technology Development Fund (TDF) Scheme<\/strong> also funds industries, especially Start-ups and MSMEs upto an amount of Rs. 10 Crore, for innovation, research and development of defence technologies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Partnership (SP) Model: <\/strong>Introduced in 2017 to create long-term partnerships between Indian companies and global Original Equipment Manufacturers (OEMs).\n<ul class=\"wp-block-list\">\n<li>These partnerships focus on technology transfer and setting up manufacturing infrastructure in India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Indigenisation Portals: SRIJAN Portal<\/strong> (launched 2020) lists defence items previously imported, inviting industry to develop them locally.<\/li>\n\n\n\n<li><strong>Ease of Doing Business in Defence: <\/strong>Defence products requiring industrial licences have been rationalised, and most parts\/components no longer need a licence.\n<ul class=\"wp-block-list\">\n<li>Industrial licence validity has been extended from 3 years to 15 years, with a possible 3-year extension, making investment planning easier.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The combination of strategic policy interventions, increased domestic participation, and a focus on indigenous innovation has significantly strengthened the country\u2019s defence capabilities.\u00a0<\/li>\n\n\n\n<li>With ambitious targets set for 2029, the nation is poised to further expand its global footprint, reinforcing its position as a dependable partner in the international defence market while enhancing national security.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/indias-defence-exports-hit-record-38424-crore-in-fy-25-26\/article70814413.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Defence exports have reached an all-time high of Rs 38,424 crore in the financial year 2025-26, marking an increase of 62.66% over the previous fiscal year. <\/li>\n<p><\/p>\n<p><strong> Major Highlights <\/strong><\/p>\n<li class=\"ms-5\"> The Defence Public Sector Undertakings (DPSUs) and the private sector have contributed 54.84% and 45.16% respectively. <\/li>\n<li class=\"ms-5\"> The DPSUs\u2019 exports surged by 151% compared to the previous year while private firms recorded an increase of 14%. <\/li>\n<li class=\"ms-5\"> The sharp rise highlights the increasing global acceptance of Indian made defence products and the sector\u2019s growing integration with the international supply chains. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/03-04-2026\/india-defence-exports-growth-2025-26 \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-70784","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=70784"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70784\/revisions"}],"predecessor-version":[{"id":70787,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/70784\/revisions\/70787"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=70784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=70784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=70784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}