SOURCE: AFI
India’s defence exports have witnessed a commendable rise in recent years, with the government setting an ambitious target of ?35,000 crore by FY25. While the nation has managed to achieve ?21,000 crore in FY24, concerns linger about the sustainability of this growth trajectory.
A significant portion of the recent export surge can be attributed to the pressing needs of countries like Armenia and Ukraine, which have faced geopolitical challenges. While these orders have provided a much-needed boost to the domestic defence industry, experts caution that relying heavily on such short-term demands could hinder long-term growth prospects.
To sustain and accelerate the momentum, India needs to secure a steady stream of substantial orders for multiple defence systems. The government has accordingly revised the export target to ?50,000 crore by FY29. Achieving this ambitious goal will require a concerted effort to develop and market a diverse range of competitive defence products and services.
Industry stakeholders emphasize the importance of focusing on long-term partnerships with friendly nations and exploring new markets. Additionally, investments in research and development, coupled with policy reforms to streamline the export process, are crucial to establish India as a global defence manufacturing hub.