India has officially shattered its previous records in the global arms market, with defence exports reaching an unprecedented ₹38,424 crore (approx. $4.5 billion) for the financial year ending March 31, 2026. This represents a staggering 62.6% year-on-year growth from the ₹23,622 crore recorded in FY25.
Defence Minister Rajnath Singh hailed the milestone as a testament to the “growing global trust” in India’s indigenous manufacturing and the success of the Atmanirbhar Bharat (Self-Reliant India) initiative.
1. The Growth Engine: Public vs. Private
A significant shift in FY26 was the explosive performance of Defence Public Sector Undertakings (DPSUs), which saw their export value surge by 151%.
| Sector | Export Value (FY26) | Share % | YoY Growth |
| DPSUs | ₹21,071 Crore | 54.84% | ↑ 151.2% |
| Private Industry | ₹17,353 Crore | 45.16% | ↑ 13.9% |
| Total | ₹38,424 Crore | 100% | ↑ 62.6% |
2. Global Footprint: “Indian Arms in 80+ Nations”
India is no longer just a components supplier; it has transitioned into a provider of full-scale platform solutions. As of 2026, Indian-made equipment is being exported to more than 80 countries.
- Key Export Destinations: Philippines, UAE, Armenia, Egypt, Mauritius, Israel, Italy, and Sri Lanka.
- Expanding Exporter Base: The number of Indian companies involved in defence exports rose to 145, up from 128 in the previous fiscal year.
3. Star Performers: The “Big Three” Platforms
The 2025-26 fiscal year saw the successful execution of several multi-billion dollar contracts that moved the needle on total export value.
- BrahMos Supersonic Missiles: Ongoing deliveries to the Philippines remain the flagship of India’s export portfolio. New interest has reportedly been logged from at least three other Southeast Asian nations.
- Pinaka Rocket System: In a historic milestone for January 2026, India flagged off the first batch of the Guided Pinaka rocket system to Armenia—a deal worth approximately ₹2,000 crore.
- Akash Air Defence: The Akash missile shield has seen high demand in the Middle East and Africa, with several nations integrating it as a cost-effective alternative to Western systems.
4. Beyond Missiles: Specialized Exports
- Small Arms & Ammunition: Huge volumes of ammunition are being supplied to nations in Southeast Asia and Eastern Europe.
- Electronic Warfare (EW): India is increasingly exporting high-end defence electronics and radar subsystems to advanced markets including the US, UK, and France.
- Personal Gear: India remains a global leader in the export of Bullet Proof Jackets (BPJs), currently supplying them to 34 different countries.
5. Road to 2029: The ₹50,000 Crore Goal
With the FY26 total already nearing the ₹40,000 crore mark, the Ministry of Defence is reportedly ahead of schedule for its long-term target of ₹50,000 crore by 2028-29.
“India is scripting an impressive success story,” stated Rajnath Singh. “The continuous efforts toward ease of doing business and facilitation of exporters have paved the way for this exemplary performance.”