India’s defence exports surged to a record Rs 38,424 crore in FY26, up 62.66% year-on-year (YoY), according to a government release. “This record high figure indicates an increase of around three times over the last five years,” the Defence Ministry said in its release.
DPSUs lead growth, private sector holds strong share
Both public and private sector companies contributed to the export growth. Defence Public Sector Undertakings (DPSUs) accounted for 54.84% of the total exports, while the private sector contributed 45.16%.
While DPSUs’ exports surged by 151% compared to the previous year, private firms’ exports increased by 14%. In terms of value, the private sector accounted for Rs 17,353 crore worth of defence exports, while DPSUs contributed Rs 21,071 crore. Their respective figures in the previous financial year stood at Rs 15,233 crore and Rs 8,389 crore.
“This sharp rise highlights the increasing global acceptance of Indian-made defence products and the sector’s growing integration into international supply chains.”
India exported defence equipment to more than 80 countries in FY26. The number of exporters rose to 145 from 128, marking a 13.3% increase from FY25.
According to Reuters, India has pushed to manufacture everything from guns and drones to fighter jets and submarines at home, either on its own or in collaboration with foreign partners.
India is the world’s fifth-largest military spender and the second-largest arms importer after Ukraine, according to the latest data from the Stockholm International Peace Research Institute.
India eyes Rs 50,000 crore defence exports target by FY30
According to a report by ANI, defence minister Rajnath Singh said that that by April 2026, exports were poised to reach around Rs29,000 crore, with the government setting a target of Rs50,000 crore in defence exports by FY 2029-30.
He also emphasised that all warships and submarines on order for the Indian Navy are being built in Indian shipyards, from design and engineering to construction and lifecycle support, terming it a major leap towards self-reliance: “Self-reliance is no longer just a slogan; it is being established as a practical reality. A Builder’s Navy is not a slogan; it is a ground reality.”
Top defence stocks performance
The Nifty defence index has declined 2.87% so far this year. The share price has fallen 3.95% in the past three months.
The share price of Hindustan Aeronautics (HAL) has declined so far this year. Bharat Dynamics (BDL) has also declined 20.28% year-to-date.
Bharat Electronics (BEL) has surged 5.02% on YTD basis.