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Key Points

India's defence exports have experienced explosive growth, multiplying 35 times in just over a decade. Private companies are punching above their weight, contributing nearly two-thirds of exports despite having a smaller share of overall production. The government has set ambitious targets to nearly double current export levels by 2029 as global interest grows in major platforms like the BrahMos missile and Tejas fighter. This export surge represents a significant shift for a country that was previously known as the world's second-largest defence importer.

Key Points: India Defence Exports Surge to $2.77 Billion Goldman Sachs Reports

  • Exports surged from $80 million to $2.77 billion over the past decade
  • Private companies contribute 65% of exports despite smaller production share
  • Government targets $5.8 billion in defence exports by fiscal year 2029
  • Over 100 countries now source Indian defence equipment and components
2 min read

Exports, a major growth area for Indian defence companies: Goldman Sachs

India's defence exports skyrocketed 35x in a decade, reaching $2.77 billion with private firms driving 65% of shipments to over 100 countries.

"We think Indian defence firms will need to move beyond components and sub-systems to complete solutions - Goldman Sachs"

New Delhi, October 6

Exports have emerged as a key growth driver for India's domestic defence sector, with the government setting ambitious targets to significantly expand the country's global footprint in the coming years, according to a Goldman Sachs report on the Indian Aerospace and Defence industry.

India's defence exports have surged from Rs 6.8 billion (USD 80 million) in FY14 to Rs 236 billion (USD 2.77 billion) in FY25. The Ministry of Defence aims to raise this to Rs 350 billion (USD 4.1 billion) by FY27 and further to Rs 500 billion (USD 5.8 billion) by FY29.

The report noted that over 100 countries are already sourcing Indian-built systems and components, from small arms and munitions to advanced sub-systems. Private firms are contributing 65 per cent of total exports, despite holding only a 35 per cent share in the overall production value.

To capture a larger share of the estimated USD 100 billion global arms market, Indian defence firms will have to move beyond components and deliver complete systems and platforms. Interest has already been shown by friendly nations in major platforms such as the BrahMos missile, Pinaka artillery systems, and Akash air defence systems.

"We think Indian defence firms will need to move beyond components and sub-systems to complete solutions," noted Goldman Sachs.

The report identified key export-ready products, including the Tejas Mk-1A fighter jet with indigenous avionics, the Prachand light combat helicopter, naval frigates and corvettes, and missile defence systems such as Akash-NG and QRSAM. Additionally, Indian firms are gaining ground in high-value materials, such as titanium and superalloys, used in aerospace manufacturing.

The report also noted that the European Union's Readiness 2030 plan, aimed at strengthening defence capacity across Europe, could open new avenues for Indian manufacturers in areas such as ammunition, drones, radar systems, and electronic warfare equipment.

Indian defence exports are expected to remain on an upward trajectory, driven by rising global demand, government policy support under the Atmanirbhar Bharat initiative, and increasing participation of private firms in the defence manufacturing ecosystem.

India is the world's fifth-largest defence spender, but is the second-largest importer of defence equipment. The country now designs and builds its own fighters, satellites and radars, and has greatly reduced its dependence on foreign suppliers.

- ANI

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Reader Comments

R
Rohit P
Impressive growth, but we need to be realistic. Moving from components to complete systems is the real challenge. Hope our companies can compete with established global players in quality and after-sales support. The Tejas export potential looks promising though!
A
Arjun K
BrahMos missiles and Pinaka systems getting international interest is a proud moment! 🚀 Our defence R&D has come a long way. The EU market opening up could be a game-changer for our electronics and radar systems.
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Sarah B
As someone working in manufacturing, the progress in titanium and superalloys is particularly impressive. These high-value materials are crucial for aerospace and show we're moving up the value chain. Great to see Goldman Sachs recognizing this potential.
V
Vikram M
While the numbers look good, we're still the world's second-largest importer. Need to focus more on indigenous development rather than just assembly. The real test will be when our systems prove themselves in actual combat scenarios with friendly nations.
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Michael C
The private sector contribution of 65% exports with only 35% production share is remarkable efficiency. This shows what competition and private enterprise can achieve in defence. Hope this trend continues and more startups enter this space.

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