Over the past few years, India has significantly increased its defense output, gradually transitioning from importer status of weapons to an exporter. This is stated in the economic review prepared by the Ministry of Finance and presented to the country's parliament.
The paper notes that India's defense output has grown significantly, from 740 billion rupees (8.8 billion USD) in fiscal 2017 to 1 trillion rupees (almost 12 billion USD) in fiscal 2023, which led to an increase in the export of defense products. “India has gone from being an arms importer to securing a place in the list of the top 25 arms exporters,”, the review said.
The study lauds the efforts of the defense industry, including private and state-owned enterprises, to increase defense exports. In addition, the number of permits issued to exporters has increased.
"In FY 2023, 1,414 export permits were issued, increasing to 1,507 in FY 2024. About 100 domestic companies export a wide range of defense products and equipment, including aircraft such as the Dornier -228, artillery guns, BrahMos missiles, Pinaka missiles and launchers, radars, simulators and armored vehicles”, the review said.
To increase defense exports, the Indian government has implemented several policy programs over the past 10 years, including streamlining export procedures, encouraging domestic design, development and production of defense equipment, and providing funds to support private producers.< /span>
Despite the desire for self-sufficiency, however, India still remains the largest arms importer. In recent years, Russia has remained the country's main supplier. According to a report by the Stockholm International Peace Research Institute (SIPRI), Russia accounts for 36% of India's arms imports in 2019-2023.