India’s defense exports have seen remarkable growth, rising from approximately $181 million in 2017 to $2.5 billion in 2024, representing a compound annual growth rate (CAGR) of 46%.
This surge is attributed to the global shift towards a China+1 strategy and the impact of the Russia-Ukraine conflict, which have created opportunities for India to fill supply chain gaps and increase its share in the global defense industry.
India aims to become a global defense manufacturing hub, leveraging contributions from various sectors including public and private enterprises, startups, and MSMEs. India’s Ministry of Defense has implemented key initiatives to attract Indian private players and global Original Equipment Manufacturers. These include establishing aerospace parks and defense corridors, streamlining project approvals, and enhancing development and testing facilities.
By 2029, India targets a domestic defense turnover of $36 billion, with $6 billion in exports.
This transformation of India’s defense sector reflects a strategic shift toward self-reliance and export-oriented growth, positioning the country as an emerging player in the global defense market.
Last updated: December 26th, 2025
