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Updated May 21, 2026 · 21:35
India News Updated May 21, 2026

India's Defence Exports Surge 75x Under Atmanirbhar Bharat Policy

India's defence exports have surged from $80 million to a target of $6 billion by 2029, driven by the Atmanirbhar Bharat policy. US experts note that China's manufacturing base exceeds that of the US, Japan, and Germany combined, making India strategically vital. The US and India have signed agreements for joint research and innovation, but technology sharing remains a bottleneck. The report highlights that Washington's export-control systems hinder deeper cooperation, allowing Beijing to consolidate its advantage.

India's defence growth stands out amid widening Chinese manufacturing base: Report

Washington/Beijing, May 21 Prime Minister Narendra Modi's Atmanirbhar Bharat policy has created industrial corridors, increased foreign investment caps, and built a defence-tech startup ecosystem that is already exporting, signalling a tangible and expanding capacity.

With hundreds of companies operating and more emerging, India has set a defence export target of about $6 billion by 2029, compared to around $80 million a decade ago, a report has mentioned.

The recent meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in Beijing served as another reminder for Washington of an industrial imbalance that still does not work in America's favour, Mike Kuiken, Vice Chair of the US-China Economic and Security Review Commission, and Leland Miller, a Commissioner on the US-China Economic and Security Review Commission, wrote in online magazine 'The Wire China.'

According to the American experts, China's manufacturing base now exceeds that of the US, Japan, and Germany combined. Even the United States and Europe together cannot match the Chinese industrial scale, making India "the only way the maths begins to work".

"That is not a matter of preference but strategic necessity," they said, aligning with India's own threat perceptions: "a country shaped by sustained Chinese pressure along its northern border, with defence modernisation increasingly organised around that reality."

"The US and India have been signing the right documents. Last October, the two nations agreed to a roadmap covering joint research, co-development, supply security, and innovation bridges between American and Indian defence startups, building on years of bipartisan effort. In 2023, then-Senate Majority Leader Chuck Schumer used the Munich Security Conference to argue that the United States and Europe could not outcompete China alone and that India had to be at the centre of the answer," they added.

Kuiken and Miller argued that signing more documents while the system governing how the US shares defence technology with its partners remains unchanged is not the solution.

They argued that concerns reflected in Indian commentary, that increasing bilateral engagement has not translated into access to the underlying technologies, are "well justified".

"The strategic argument for a deeper and more meaningful US-India partnership has been settled in Washington for three years, but the architecture has not moved. That is not principally a failure on India's side of the table; it is ours," the experts noted.

Highlighting the growing constraints in Washington in advancing the deeper cooperation with India, the report said that "what has lagged is not intent, but execution."

"The bottleneck increasingly sits in Washington: export-control regimes, byzantine procurement rules, financing tools, and technology-sharing frameworks built for a different era and a different strategic environment. Until that architecture changes, the partnership will continue to operate below its potential. Every year that gap persists is another year in which Beijing consolidates its industrial and technological advantage," it noted.

— IANS

Reader Comments

Sneha F

Good to see India rising in defence manufacturing, but let's not forget the ground reality. We still import most of our high-end military equipment from Russia and France. The $6 billion export target is ambitious, but we need to ensure our own forces get cutting-edge technology first. Also, the US cites 'export-control regimes' as a bottleneck, but India must diversify its partnerships—not rely solely on America. Self-reliance means having options, not dependence on one country! 🤔

Alexander G

As an American following US-India relations, I'm impressed by India's progress. The Chinese industrial scale is overwhelming, and we need allies with manufacturing heft. India's defence ecosystem creating startups and exporting is exactly the kind of capability the US should support. The experts are right—Washington's bureaucracy is slowing us down. If we can't share technology with a trusted partner like India, who can we share it with? Both nations stand to benefit from deeper cooperation. 👍

Manish T

Good analysis, but I'm a bit skeptical about the 'strategic necessity' angle. India is indeed a natural counterweight to China, but we should pursue defence modernization for our own security, not just because the US needs us. The report rightly points out that technology transfer hasn't happened despite years of bilateral engagement. India must push for co-development and indigenous innovation, not just assembly lines. That's the only way to ensure long-term self-reliance. ✌️

Kavya N

This is a big validation of India's efforts! From being a net importer to exporting defence equipment—that's a story of transformation. I visited a defence exhibition in Bengaluru recently, and the number of Indian startups showcasing drones, radars, and cybersecurity solutions was mind-blowing. The US must get its act together on technology sharing. Why should India trust a partner that keeps its best tech locked away? We need a fair deal, not just diplomatic hand

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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