India emerging as defence manufacturing powerhouse with focus on exports

India’s defence exports up 63 per cent this year, reached a record ₹38,424 crore

 

By Ajai Shukla

20^th August 2026

 

India’s defence exports reached a record ₹38,424 crore in FY 2025–26, registering a 62.66 per cent increase over FY 2024–25 and marking a historic 56-fold increase from FY 2013–14.

 

The contribution to defence export of the private sector, including start-ups and micro, small and medium enterprises (MSMEs), has increased to 45.16 per cent

 

These figures were released in New Delhi on August 19, 2026 by industry body Federation of Indian Chambers of Commerce and Industry (FICCI).

 

FICCI had organised a session yesterday on “Catalyzing Bharat’s Prowess in Defence Manufacturing & Exports: Make in India–Make for the World” bringing representatives from the Ministry of Defence, Armed Forces, Defence Attachés, Indian defence industry and other stakeholders to strengthen international cooperation and expand India’s role in the global defence ecosystem.

 

Mr Vivek Virmani, Deputy Director General, Department of Defence Production, Ministry of Defence, provided an overview of India’s defence sector, covering the country’s growing production and exports, capabilities across land, naval, and air platforms, and the evolution of India as an increasingly competitive and capable defence manufacturing nation. He highlighted the breadth of India’s defence industrial base and the growing opportunities for international partnerships. He urged Defence Attachés to serve as key enablers in building bridges of cooperation between India and their respective countries, facilitating greater exchanges between defence forces, Ministries of Defence and industry, and identifying opportunities for joint innovation, co-development, co-production and technology partnerships.

 

Ashish Kansal, Co-chair, FICCI Defence and Homeland Security Committee & CEO of SMPP Ltd, said the key driver of transformation has been the Government’s sustained focus on Atmanirbhar Bharat in defence… He noted that more than 100 Indian companies are currently exporting arms and equipment to over 85 countries, with defence exports having grown 20-fold over the past decade.

 

Bodhisattwa Sangapriya, co-chair, FICCI drones committee, presented the industry perspective, emphasising India’s emergence as a trusted and cost-effective defence manufacturing hub. He highlighted the rapidly expanding role of drones and unmanned systems in modern warfare. He noted that drones are increasingly at the centre of contemporary military operations and discussed the future trajectory of unmanned warfare, including manned-unmanned teaming, space-controlled and space-navigated warfare, fully autonomous RPAS, single swarms undertaking multiple missions, and the redesign of traditional war-gaming and operational concepts. 

 

Sangapriya observed that the rise of drones ins not merely the rise of a machine or a tool. It is actually the democratisation of air power and of low-cost machines that can potentially take on highly engineered and sophisticated systems

 

Leading Indian defence and aerospace companies including, Jindal Strategic Ventures, Zen Technologies, SMPP, Munitions India, MKU, L&T, Indrajaal Drone Defence India, IG Defence, Hughes Precision Manufacturing, HHV Advanced Technologies, HFCL, Evigway Technologies showcased their latest technologies, platforms and products and highlighted opportunities for international collaboration.

 

The session brought together around 40 defence attachés and representatives from Embassies and High Commissions of over 25 friendly foreign countries, and 16 Indian Defence Attachés serving abroad, along with leading representatives from the Indian defence industry. The dialogue focused on strengthening India’s role in the global defence supply chain and fostering international collaborations in co-design, co-development, co-production and technology partnerships.