India's Defence Exports: Policy and Progress

Introduction

India is transitioning from being one of the world's largest defence importers to a defence manufacturing and export hub. Driven by the Make in India initiative, policy reforms (Defence Procurement Procedure, Defence Production and Export Promotion Policy), and geopolitical shifts, India's defence exports have seen remarkable growth - from ₹1,942 crore (2014-15) to ₹21,083 crore (2023-24) - a tenfold increase in a decade.

The Strategic Rationale

Why Defence Exports Matter

1. Foreign policy tool: Enhances strategic partnerships and diplomatic influence
2. Economies of scale: Larger production runs reduce per-unit cost for domestic forces
3. Self-reliance: Export revenue funds R&D and production capacity
4. Job creation: Defence manufacturing employs ~1.5 million people (direct + indirect)
5. Technology development: Export-led competition drives innovation
6. Geopolitical leverage: Reducing import dependence strengthens strategic autonomy

India's Defence Import Legacy

• India was world's 2nd largest arms importer (after Saudi Arabia) - SIPRI data
• Import dependence: 55-60% of defence equipment imported
• Major suppliers: Russia (49%), France (14%), Israel (9%), USA (8%) - as of 2023
• The goal: Reduce import bill while increasing exports to achieve favourable trade balance

Policy Framework