From Importer to Global Seller: India’s Defence Exports Hit Record ₹38,424 Crore in FY26, Led by BrahMos Success

India’s defence export sector has achieved a historic milestone, reaching an all-time high of ₹38,424 crore (approximately $4.6 billion) in the 2025-26 fiscal year. Bolstered by the execution of the BrahMos supersonic cruise missile contract with the Philippines, a newly signed $620 million deal with Vietnam in May 2026, and major weapons sales to Armenia, the 'Make in India' initiative has officially transformed the country from the world's largest arms importer into an emerging global exporter.

For decades, India was known primarily as the world's largest importer of foreign military hardware, heavily relying on Russian, French, and American suppliers. However, official figures released by the Ministry of Defence for the 2025-26 financial year (FY26) reveal a monumental shift: India's domestic defence production scaled a record ₹1.78 lakh crore, while defence exports surged by over 62 per cent to an all-time high of ₹38,424 crore. Remarkably, the private sector has taken center stage in this transformation, contributing a record 45 per cent share (nearly ₹17,353 crore) of the total exports.

The undisputed flagship of India's export drive is the BrahMos supersonic cruise missile, a joint venture between India's DRDO and Russia's NPO Mashinostroyeniya. Capable of traveling at nearly three times the speed of sound (Mach 2.8), the missile has become highly sought after in Southeast Asia as nations seek to beef up their coastal defences. Following a $375 million contract signed with the Philippines in 2022—with deliveries successfully executed through 2024 and 2025—India secured a massive $620 million deal to sell BrahMos batteries to Vietnam in late May 2026. Additionally, Indonesia formalized its own procurement plans in March 2026, establishing BrahMos as a key instrument of India's strategic diplomacy in the Indo-Pacific.

Beyond Southeast Asia, Armenia has emerged as another massive partner for Indian military hardware. Facing severe regional security challenges, Yerevan has bypassed traditional suppliers to procure over $2 billion worth of Indian equipment in recent years. This includes the indigenous Akash surface-to-air missile system (in a $720 million agreement), the Advanced Towed Artillery Gun System (ATAGS), and the Pinaka multi-barrel rocket launcher system. In fact, on January 18, 2026, the first combat-ready batch of guided Pinaka rockets was officially flagged off for shipment to Armenia, marking a major milestone for India's precision artillery exports.

While complete weapons systems grab the headlines, a substantial portion of India's export growth is driven by integration into global supply chains. According to industrial reports, the United States has emerged as the single largest destination for Indian aerospace exports. Indian joint ventures, such as Tata Boeing Aerospace in Hyderabad, now manufacture critical components—including the entire fuselage for Apache attack helicopters, wings for F-16 fighter jets, and structural parts for C-130 transport aircraft—establishing Indian facilities as vital cogs in the global manufacturing networks of Boeing and Lockheed Martin.

The export trajectory shows no signs of slowing down, as New Delhi enters early but fast-moving negotiations with the United Arab Emirates (UAE) for the potential sale of both BrahMos missiles and the Akashteer automated air-defence command-and-control system. With the Ministry of Defence setting an ambitious annual export target of ₹50,000 crore by 2029, the 'Atmanirbhar Bharat' (self-reliance) program has successfully bridged the gap between national pride and global commercial viability.