New Delhi, October 2026 : India has emerged as the third-largest exporter of arms to Europe over the past year, driven by rising demand for defence equipment under the “Rearm Europe” initiative and supported by the rapid expansion of its domestic defence manufacturing sector, Defence Secretary Rajesh Kumar Singh said on Friday.
India’s defence exports have reached a record ₹38,424 crore, equivalent to approximately 3.6 billion euros, Singh told journalists. Referring to a Bloomberg report, he said the increase in exports to Europe was largely driven by demand for standard ammunition, artillery shells and both large- and small-calibre ammunition.
“Suddenly, over the last year, India became the third-largest exporter of arms to Europe, mainly because of the Rearm Europe initiative,” Singh said, highlighting the growing role of Indian manufacturers in meeting international defence procurement requirements.
He attributed the rise in exports to the significant expansion of India’s defence manufacturing ecosystem over the past decade. Besides 16 major public sector companies, the country now has nearly 840 large and medium-sized private sector firms and around 17,000 small enterprises, including startups, operating in the defence sector.
The growth of this diversified industrial base is reflected in domestic sales, which have reached approximately 17 billion euros, Singh said.
India currently exports defence equipment to more than 80 countries. The government is also working to ensure that around 75 per cent of its annual defence capital expenditure, estimated at $20 billion to $25 billion, is spent domestically. Priority is being given to products categorised as Indigenous Design, Development and Manufacturing (IDDM), which are designed, developed and manufactured in India.
The approach aims to strengthen domestic production capabilities and technological self-reliance while reducing dependence on imported defence equipment.
Exports Extend Beyond Ammunition and Heavy Weapons
India’s defence exports are not limited to heavy artillery and ammunition. They also include tactical equipment such as helmets and bulletproof jackets, as well as small arms and other defence components.
Singh said several buyers, particularly in Southeast Asia, were engaging in negotiations for a range of Indian defence products. These include different types of small arms, artillery gun systems and other components used by armed forces.
The expanding range of products reflects the growing capabilities of Indian manufacturers to cater to diverse international requirements, he added.
Diversifying Defence Partnerships
Singh said India had historically depended heavily on Russia for defence supplies. Although a substantial portion of the country’s existing military equipment is still of Russian origin, that dependence has declined over time as India has diversified its sources of procurement.
India has developed strong bilateral defence relationships with several European countries, particularly France, as well as with other international partners.
According to Singh, France accounts for approximately 15 per cent of India’s defence imports after Russia, while Israel has a similar share.
Referring to his recent visits to Greece and Cyprus, he said India saw considerable strategic alignment with both countries. He described them as recent partners that could also serve as gateways for expanding cooperation with Europe.
This diversification of partnerships, he said, would help India scale up production and respond more effectively to international procurement demands.
Joint Ventures to Expand Access to European Markets
India intends to participate increasingly in Europe’s defence procurement programmes, primarily through joint ventures with European companies, Singh said.
The proposed approach would also encourage European defence manufacturers to establish joint ventures in India, allowing them to access the domestic market, while Indian companies could set up operations in Europe to participate in government procurement programmes there.
European countries can also participate in India’s defence procurement programmes, provided they meet the government’s ‘Make in India’ requirements, he added.
Singh said the proposed partnership framework could help integrate Indian and European defence manufacturing supply chains more closely.
“I hope that this partnership agreement can lay the base for a situation where the supply chains between European and Indian defence manufacturers become increasingly integrated,” he said.
The government’s approach combines the expansion of domestic manufacturing, diversification of international partnerships and greater participation in overseas markets. With Indian companies supplying defence equipment to more than 80 countries, the growing export sector is expected to play an important role in strengthening India’s position in the international defence industry.
