SOURCE: AFI
In a recent statement that has sparked global discussions, Keji Mao, a Research Associate with the India Program at the Pangoal Institution in Beijing, has lauded India’s burgeoning role in the global defense industry, posing the question: “Is India becoming the ‘Arsenal of Democracy’ in the world?” Mao’s comments come on the heels of India’s record-breaking defense exports for the financial year 2024-25, which saw a wide range of Indian defense products—spanning ammunition, arms, subsystems, systems, parts, and components—reaching around 80 countries. Notably, the United States, Israel, and Germany have emerged as the biggest importers of defense systems from India, signaling a significant shift in global defense dynamics.
India’s defense exports for FY 2024-25 reached an all-time high of ?23,622 crore (approximately US$2.8 billion), marking a 12.04% increase from the previous year’s ?21,083 crore. This growth reflects a broader trend of India’s rising prominence in the global arms market, a trajectory that has been accelerating since the government opened up the defense sector to private players in 2014. The private sector contributed ?15,233 crore to the export tally, while Defence Public Sector Undertakings (DPSUs) saw a remarkable 42.85% growth, contributing ?8,389 crore. The export approvals also surged, with 1,762 authorizations issued in FY 2024-25—a 16.92% increase from the previous year—indicating a robust pipeline for future exports.
Mao’s characterization of India as a potential “Arsenal of Democracy” draws on the historical term used to describe the United States during World War II, when it supplied democratic nations with critical war materials to combat authoritarian regimes. By invoking this phrase, Mao highlights India’s dual role as a democratic nation and an emerging defense manufacturing powerhouse, suggesting that India’s exports could play a strategic role in supporting democratic allies globally. The United States, Israel, and Germany—three of India’s largest defense export markets—are all democracies, which aligns with Mao’s framing. However, this narrative also invites scrutiny, given India’s complex geopolitical stance and domestic challenges.
The range of Indian defense products finding buyers abroad is impressive. From small arms and ammunition to advanced systems like the Pinaka multi-barrel rocket launcher, BrahMos supersonic cruise missiles, and Akash surface-to-air missile systems, India is diversifying its export portfolio. The United States has emerged as a major importer of Indian-made materials, alloys, steel, components, and subsystems, reflecting a growing trust in India’s manufacturing capabilities. Israel, a long-standing defense partner, imports a significant share of finished weapon systems and equipment, while Germany has been a key buyer of electronics and software, particularly for radar and avionics applications. This export success is underpinned by India’s Defence Production Policy of 2018, which set an ambitious target of achieving US$5 billion in annual defense exports by 2025—a goal that India appears well on track to meet, with projections estimating exports could reach ?50,000 crore by 2029.
Mao’s praise for India’s defense export achievements comes at a time when India is actively seeking to reduce its historical reliance on imported defense equipment. Despite being the world’s largest arms importer, accounting for 9.8% of global arms imports as of 2023, India has made significant strides in domestic production. Currently, 70-75% of its defense needs are met through indigenous manufacturing, a marked improvement from previous decades. This shift is driven by initiatives like Make in India, which have encouraged private sector participation and fostered collaborations with global defense firms. Companies like Bharat Forge and Tata Advanced Systems Limited have been at the forefront of this transformation, producing systems like the Advanced Towed Artillery Gun System (ATAGS) and Wheeled Armoured Platforms (WhAP) for both domestic use and export.
However, the “Arsenal of Democracy” label raises important questions about India’s broader geopolitical and domestic context. While India’s defense exports to democratic nations like the US, Israel, and Germany are notable, its export portfolio also includes countries with less democratic credentials, such as Myanmar, which accounted for 58% of India’s arms exports between 2018 and 2022. This pragmatic approach to arms sales reflects India’s long-standing policy of strategic autonomy, which prioritizes national interest over ideological alignment. India’s refusal to condemn Russia’s invasion of Ukraine and its continued purchase of discounted Russian oil—over 1 million barrels per day in 2022—further complicate the narrative of India as a champion of democratic values. Critics argue that India’s neutral stance on global conflicts and its willingness to engage with authoritarian regimes undermine the moral undertones of the “Arsenal of Democracy” moniker.
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