India’s defence exports have reached an all-time high of ₹38,424 crore, with increased shipments of ammunition and military equipment to European countries contributing to the growth, Defence Secretary Rajesh Kumar Singh said last week. The government is targeting defence exports of ₹50,000 crore by 2029, as Indian-made systems are now being supplied to more than 18 countries.
Singh said India had become the third-largest exporter of arms to Europe, attributing the position mainly to the “ReArm Europe” initiative and the resulting demand for standard ammunition and artillery shells. He said the export basket also included large- and small-calibre ammunition. The statement places ammunition among the most visible areas of India’s expanding defence-export activity.
“Our exports have reached an all-time high of ₹38,424 crore (which is about €3.6 billion)… India became the third-largest exporter of arms to Europe mainly because of the Rearm Europe initiative.”
Singh also referred to a Bloomberg report which said Indian arms manufacturers had supplied at least $872 million worth of ammunition to European countries since Russia’s invasion of Ukraine four years ago. Bloomberg cited Trade Data Monitor figures drawn from Commerce Ministry data. The reported value represents a 1,600% increase over the $49.2 million in arms exported to Europe during the four years before the war.
Production and export targets
The export expansion is part of a wider government objective to increase the scale of India’s defence manufacturing. According to a recent PIB release, the country is aiming for ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029. Annual defence production reached an all-time high of ₹1.78 lakh crore in FY26, representing 15.6% growth over the previous financial year.
| Indicator | Figure |
|---|---|
| Defence exports | ₹38,424 crore |
| Export target for 2029 | ₹50,000 crore |
| Annual production target for 2029 | ₹3 lakh crore |
| Defence production in FY26 | ₹1.78 lakh crore |
The figures indicate a growing role for private industry alongside defence public sector undertakings (DPSUs). The Financial Express reported that the private sector contributed ₹17,353 crore in FY26, while DPSUs contributed ₹2,071 crore to defence exports. The report also said that Indian defence products are reaching more than 18 nations, broadening the customer base beyond traditional markets.
Ammunition becomes a prominent export category
- ₹38,424 crore: India’s reported record defence exports.
- More than 18 countries: The number of nations receiving Indian defence systems, according to the report.
- $872 million: Ammunition exports to European countries cited in the Bloomberg report.
The reported rise in ammunition exports comes as European countries increase procurement amid continuing security pressures. For India, the figures provide an official measure of the expansion of its defence manufacturing and overseas sales. The government’s 2029 targets will require the export base and production capacity to grow further from the levels reported for FY26.
