India's Defence Exports Hit Record Rs 38,424 Crore in FY26

BrahMos has long been the most prominent symbol of India’s emergence as a defence exporter, but the country’s next phase of growth could be led by drones, precision munitions, autonomous strike platforms and advanced electronics. Recent conflicts have changed military priorities, increasing demand for systems that can travel farther, strike accurately, operate autonomously and cost significantly less than conventional missiles, fighter aircraft and other large platforms.

India’s defence exports reached a record ₹38,424 crore in the 2025-26 financial year, rising 62.66 per cent from ₹23,622 crore a year earlier. Indian defence equipment is now exported to more than 80 countries, while the number of exporters has increased from 128 to 145. Beyond the headline figures, the composition of these exports is also expanding to include drones, counter-unmanned aircraft systems, radars, artillery, ammunition, protective equipment, aircraft components and air-defence platforms.

One emerging product is KAL, a long-range, one-way attack drone developed by Noida-based IG Defence. According to the company, the autonomous system can travel up to 1,000 kilometres, remain airborne for seven to eight hours and carry a payload of 50 kilograms. IG Defence is positioning the platform for overseas opportunities, subject to government approval, as friendly countries seek affordable systems that can be acquired quickly and deployed over long distances.

Also Read: India, Indonesia Advance Defence Ties As Jakarta Plans $200 Million BrahMos Missile Purchase

IG Defence founder and chief executive Bodhisattwa Sanghapriya said future battlefields would increasingly be shaped by autonomous, long-range precision-strike capabilities. Recent wars have demonstrated that relatively inexpensive drones can threaten targets hundreds of kilometres away without requiring the use of multimillion-dollar missiles. India’s broader export portfolio already includes systems such as Pinaka rocket launchers, ATAGS artillery guns, Akash air-defence platforms and Swathi weapon-locating radars.

Another potential growth area lies in the electronics and subsystems that make conventional weapons more accurate and effective. Ammunic Systems CEO Priyanka Singhal said India’s export potential should not be assessed solely through finished platforms, as fuzes, sensors, guidance equipment and precision electronics form the “intelligence layer” within modern munitions. The company has worked with the Indian armed forces and the Defence Research and Development Organisation on technologies involving munitions and electronic fuzes.

India aims to raise annual defence exports to ₹50,000 crore by 2029-30, a target that will require participation from both state-owned and private manufacturers. Government data show that defence public-sector enterprises contributed ₹21,071 crore to exports in FY26, while private companies accounted for ₹17,353 crore. With the Philippines buying BrahMos and Armenia acquiring Indian rocket and artillery systems, officials and manufacturers see opportunities across missiles, drones, electronics, sensors, ammunition, aircraft, helicopters, boats, torpedoes and critical components.

Also Read: India, Indonesia Strengthen Defence Ties Through BrahMos Missile Cooperation