India’s Defence Exports Reach ₹38,424 Crore in FY26, Up 62.66% YoY

India’s Defence Exports reached ₹38,424 crore in FY 2025-26, marking a 62.66% increase from ₹23,622 crore in the previous financial year. The rise of ₹14,802 crore shows an expansion in overseas shipments of domestically manufactured defence equipment. 

As per PIB, the latest figure follows a gradual increase in recent years, with exports rising from ₹21,083 crore in FY24 to ₹23,622 crore in FY25 before the sharper jump in FY26. 

DPSUs Account for Larger Share 

Defence Public Sector Undertakings (DPSUs) contributed ₹21,071 crore to total exports, up from ₹8,389 crore in the previous year. This represents a 151% increase. 

Private sector exports stood at ₹17,353 crore, compared to ₹15,233 crore earlier, showing a 14% rise. DPSUs accounted for 54.84% of total exports, while private firms contributed 45.16%. 

The number of exporters increased from 128 to 145, indicating broader participation across the sector. 

Export Base and Destinations Expand 

Indian defence equipment is now exported to over 100 countries, including the United States, France and Armenia. The widening export base reflects growing acceptance of locally manufactured systems across multiple markets. 

Exports also recorded an increase of ₹2,539 crore, or 12.04%, over FY24 levels before the FY26 surge. 

Policy Changes and Production Growth 

Changes in export procedures, including simplified authorisation and a revised online system, have supported export activity. These measures have been introduced by the Department of Defence Production to streamline approvals. 

Domestic production has also expanded. Defence production reached ₹1,27,434 crore in FY24, compared to ₹46,429 crore in FY15, a 174% increase over the period. 

Public sector units accounted for around 77% of production, while private sector participation rose to 23%, up from 21% a year earlier. 

Spending Trends and Targets 

Government expenditure on defence increased from ₹2.53 lakh crore in FY14 to ₹6.81 lakh crore in FY26, supporting procurement and capacity building. 

The government has set targets of ₹3 lakh crore in defence manufacturing and ₹50,000 crore in exports by 2029. 

Read More: RBI Update: 98.45% of ₹2000 Notes Returned to Banks as of March 31, 2026! 

Conclusion 

The data indicates consistent growth in exports supported by production gains and policy changes. Export activity has expanded across markets. 

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