From Importer to Exporter: India’s Defence Leap After the Clashes
By Sanjeev Oak
India’s recent clash with Pakistan was more than a military episode—it became a showcase for indigenous defence power. Once the world’s top arms importer, India is now stepping into the role of exporter, reshaping both its economy and geopolitics.
For decades, India was synonymous with arms imports—dependent on Russian jets, American surveillance aircraft, or Israeli drones. Yet the recent four-day military clash with Pakistan has marked a turning point, not just on the battlefield but in the global arms market. It was not only a test of resolve but also a live showcase of India’s emerging defence manufacturing ecosystem.
Battlefield as Marketplace
The brief but intense confrontation, the most significant since Kargil in 1999, saw the deployment of missiles, drones, and artillery on both sides. Over 70 soldiers and civilians were killed. But amid the tragedy, one fact stood out: India relied heavily on indigenously developed systems, from the “Sky Arrow” air-defence shield to locally produced artillery shells.
International buyers took note. Within days, defence attachés from several countries began inquiries about Indian systems, particularly the BrahMos cruise missile and the AI-powered Akashteer command system.
“When a weapon proves itself in real combat, it carries a validation no brochure can provide.”
This sudden surge of interest underscored how battlefield performance can instantly transform perception. India’s arms manufacturers, both state-owned and private, are now finding themselves in a position once unthinkable: as global suppliers, not just buyers.
Numbers Tell the Story
The transformation is not rhetorical. Defence exports touched $2.8 billion in 2024–25, a 12 per cent increase over the previous year. Compare this to a decade ago, when India barely managed exports worth $80 million. In the same period, domestic defence production doubled to around $18 billion, reflecting not just government policy but also industry confidence.
These numbers remain modest compared to global giants like the US or France. But they represent a structural shift. India has moved from being the world’s top importer of weapons to a credible player in the export market.
“India is no longer just a customer in the global arms bazaar; it is slowly setting up its own stall.”
Cost Advantage, Policy Push
Part of India’s competitive edge lies in cost. A 155 mm artillery shell made in Indian factories costs between $300 and $400, compared to $3,000 in Europe. The BrahMos missile, priced at $30 million per unit, is roughly half the cost of Western equivalents. For countries with constrained defence budgets, that price-performance ratio is irresistible.
Policy too has played its role. Since 2014, successive governments have put defence indigenisation at the heart of national security. Procurement rules were reformed, private firms like Tata, Adani, and Bharat Forge were encouraged, and the Defence Acquisition Procedure prioritised local sourcing. Recent reforms also aim to cut procurement timelines from six years to just two.
Regional Ripples
The Pakistan clashes, however, also reveal the flip side: the arms race dynamic in South Asia. Islamabad responded by raising its defence budget by nearly 20 per cent, even as its economy staggers under debt. The spiral is familiar. Each step India takes to bolster its self-reliance will invite counter-measures from across the border.
“For Pakistan, even a symbolic loss to India on the battlefield translates into pressure to spend more, even when it cannot afford to.”
Yet India’s long-term calculus is not shaped only by Pakistan. Its ambitions are global. By 2029, New Delhi hopes to scale defence exports to $6 billion, spreading sales across Africa, Southeast Asia, and even Western partners.
Strategic Autonomy Reinforced
There is also a geopolitical dividend. An India that manufactures and exports weapons is an India less beholden to any one supplier. In past wars, delays in spare parts or sanctions threatened military readiness. By producing its own, India reduces that vulnerability. By selling abroad, it also creates leverage.
This explains why countries as diverse as Armenia, the Philippines, and Vietnam are looking at Indian systems. In each case, India is not just a vendor but a strategic partner, offering weapons without the political strings that often accompany Western deals.
The Road Ahead
The transformation, however, is not complete. India’s exports still focus largely on smaller systems—ammunition, radars, boats, and spare parts. To move into the league of major exporters, India must scale production of complex platforms—fighter jets, submarines, advanced drones—and sustain quality over decades.
There are also challenges of integration: the private sector is still finding its rhythm with defence public sector units, and research spending remains modest compared to China or the US. Without deeper investment in R&D, India risks plateauing at the mid-tier of arms suppliers.
“The real test is not just in making in India, but in innovating in India.”
This is more than an arms trade story. It is a story of strategic autonomy—where India, by producing and exporting its own defence systems, gains both security and influence. The importer is learning to become an exporter, and in doing so, rewriting the script of its place in global power equations.