50% cheaper than western peers: Why India’s missile systems are winning global orders

In a global arms market where price sensitivity matters as much as performance, systems such as Akash, Pinaka, BrahMos and Nagastra are helping India position itself as a serious defence supplier to Asia, Africa and the Middle East.

The strongest advantage for Indian defence products is the affordability aspect. Across missile and rocket systems, Indian missiles are often 20–50% cheaper when compared to Western counterparts, making them attractive to countries looking for capable but budget-conscious options.

As per an assessment by Kotak Institutional Equities, this cost edge is reinforced by lower manufacturing costs and government support, which together have made India more competitive in price-sensitive markets.

Billions saved, billions earned: India’s low-cost defence strategy pays off

In the surface-to-air segment, the Akash missile system is priced at around US$0.5 million per missile, compared with the NASAMS system at roughly US$0.8–1.0 million per missile. That lower price point gives Akash a strong export pitch for countries seeking modern air defence without the premium attached to many Western systems.

India’s broader air-defence strategy is also gaining traction through future systems such as ‘Project Kusha’ (long-range air defence), which is being developed as a lower-cost alternative to the Russian S-400. Some of the media reports suggest five squadrons of Kusha could cost about Rs 21,700 crore, versus Rs 45,000 crore spent by India in 2018 for five S-400 squadrons procured from Russia, while the missiles themselves are also expected to be far cheaper.

BrahMos is not cheaper compared ro Western peers, but it remains one of India’s most important export weapons because of its performance-to-price proposition. The supersonic cruise missile is estimated at about $3–5 million per missile, compared with the US Tomahawk at roughly $1.5–2 million per missile. Even so, BrahMos stands out for its speed, strike power and credibility as a high-end precision weapon, which has made it attractive to buyers looking for a premium but still competitive cruise-missile system.

In the multi-barrel rocket category, Pinaka is estimated at about $0.1 million per rocket, compared with the US HIMARS at around $0.15–0.2 million per rocket. That affordability, combined with battlefield utility, has boosted its export appeal. Nagastra-1, India’s loitering munition, has also drawn attention after being combat-proven during Operation Sindoor in May 2025, adding another cost-effective category to India’s export basket.

For anti-tank missiles, Nag and Helina are priced at about US$0.1 million per unit, compared with the US Hellfire at around US$0.2 million per unit. These systems may still be in development or in early export stages, but they widen India’s portfolio of affordable tactical weapons.

Made in India, priced to compete: Drones and radars boost defence exports

India’s competitive edge is not limited to missile systems. In drones, Indian products are still building their global footprint, but the export base is rising. The DRDO/BEL Archer SRUAV is being positioned as a cost-competitive alternative to Turkey’s Bayraktar TB2, which is priced at roughly $2–5 million per unit and has been sold to more than 30 countries. India’s loitering munitions and smaller UAV systems are increasingly being viewed as practical and lower-cost options for militaries with tighter budgets.

In electronics and radar systems, India is benefiting from a high indigenous content base, with more than 85% local input in several products. BEL’s Swathi weapon locating radar is a flagship example, priced at about US$10 million per unit and said to be 40–60% cheaper than the US Firefinder system.

Armenia has already signed a four-unit deal, and discussions are underway for more units, showing that India’s radar systems are also finding traction in export markets. Other products in this pipeline include the Ashwini low-level transportable radar, anti-stealth very-high-frequency radar and mountain surveillance radars.

Global buyers, record earnings: India’s defence exports hit new heights

The most visible success story is BrahMos. The Philippines signed a deal worth about US$375 million, Vietnam has also signed a contract, and Indonesia is moving toward procurement, while more than half a dozen countries have shown interest. India has also reported interest from the UAE, Egypt, Belarus, Malaysia, Thailand and Brazil, reflecting the missile’s widening global footprint.

Akash has also gained export traction, with Armenia signing a deal and several other countries expressing interest, including Egypt, the UAE, Vietnam, the Philippines, Brazil, Belarus, Malaysia and Thailand. Pinaka too has found buyers, with Armenia signing up for the system, further validating India’s ability to compete in the international artillery-rocket market.

India’s broader export story is also strengthening. Defence exports reached an all-time high of Rs 38,424 crore in FY25-26, and official estimates suggest they could rise to Rs 50,000 crore by FY29. The United States remains the largest market, accounting for roughly half of India’s defence exports, with about US$2.8 billion worth of exports over FY19-24 driven by Indian firms supplying high-value parts and sub-systems into Boeing and Lockheed Martin supply chains.

Conclusion

The key reason Indian systems are gaining attention is that many countries do not want the absolute highest-performance weapon if it comes with a steep price tag. They want a system that offers enough capability, proven reliability and acceptable operational risk at a sustainable cost. That is exactly where India is now competitive, especially in Asia, Africa and the Middle East.

The combination of lower prices, improving combat credibility and expanding export willingness is turning India from a domestic defence producer into a more significant global supplier. As one brokerage note put it, India’s competitive pricing, easing export controls, deeper defence diplomacy and operational performance of indigenous systems are likely to support further export growth. For India’s defence sector, that is more than a market opportunity; it is a structural shift in how the country is seen in the global weapons trade.

Disclaimer: This report is published for informational and news reporting purposes only and does not constitute financial, investment, or commercial advice.