Policy briefs · Oct 16, 2026
India's Defence Exports Surpass $3 Billion for First Time, New Markets Driving Growth
India's Ministry of Defence announced on October 16 that defence exports crossed $3 billion in the April-September 2026 period, on track for a record annual total. Key export items include the BrahMos supersonic cruise missile (Philippines, Vietnam, Armenia), the Tejas Mk1A light combat aircraft (Malaysia), and a range of armoured vehicles, artillery systems, and military electronics. The government's Defence Export Promotion Policy has transformed India from a primarily import-dependent defence market to a significant global exporter within four years.
Contents
Key takeaways
- Defence exports at $3 billion for April-September 2026, against full-year target of $5 billion
- BrahMos missile has been exported to Philippines, Vietnam, Indonesia, and Armenia
- Tejas Mk1A: 18-aircraft contract signed with Malaysia worth $1.2 billion
- HAL Dhruv Advanced Light Helicopter ordered by Peru and Ecuador
- Exports now cover 85 countries, up from 42 in 2021
Product Mix and Market Diversification
India's defence export achievement is built on a combination of original Indian systems and licensed or co-developed products. The BrahMos supersonic cruise missile — a joint venture with Russia, though India now holds majority engineering and production control — has become India's flagship defence export, with confirmed sales to the Philippines, Vietnam, Indonesia, and, controversially given its implications for Russian-Armenian relations, to Armenia. Philippines delivery of BrahMos systems has been completed, and Vietnam is receiving its second batch. Malaysia's contract for 18 Tejas Mk1A light combat aircraft, signed in August 2026 after three years of negotiations, is the largest single export order for an Indian-built combat aircraft and validates the Tejas programme internationally after years of delays and criticism.
Beyond these flagship systems, India's defence export portfolio now covers armoured fighting vehicles (the Kestrel IFV has orders from Uruguay and the UAE), artillery systems (Advanced Towed Artillery Guns exported to multiple Southeast Asian countries), maritime patrol vessels built by Goa Shipyard, and a growing array of military electronics and software including electronic warfare systems and radar. The Hindustan Aeronautics Limited Dhruv Advanced Light Helicopter has found markets in Peru and Ecuador following an Andean demonstration programme.
Strategic Dimensions and Policy Framework
India's Defence Export Promotion Policy, launched in 2021 and revised in 2024, created a streamlined single-window clearance mechanism, export credit guarantees from the Export-Import Bank of India, and a defence attaché network specifically tasked with export facilitation. The government has set a target of $5 billion in annual defence exports by the end of 2026, up from the $1.6 billion achieved in 2022-2023. At the current trajectory, the full-year 2026-2027 figure is likely to reach $5.5-6 billion, surpassing the target.
The strategic logic of India's defence export push is explicitly linked to its broader foreign policy. Defence exports to Vietnam and the Philippines create strategic partnerships in the South China Sea that align with India's interest in a rules-based regional order. Exports to Armenia deepen New Delhi's stake in Caucasus security. Exports to African and Latin American countries extend India's 'Global South leadership' narrative. The Quad partners — US, Japan, Australia — have generally welcomed Indian defence export expansion as reducing their own burden of supplying partners in contested regions, while acknowledging concerns about technology transfer provisions in some contracts.
Sources
Related publications
South Korea and Australia Sign Comprehensive Strategic Partnership With Joint Submarine Maintenance and Missile Technology Sharing
South Korean President Lee Jae-myung and Australian Prime Minister Anthony Albanese signed a Comprehensive Strategic Partnership in Canberra on 15 September 2026 that includes a joint submarine maintenance facility at HMAS Stirling near Perth, a ballistic missile guidance technology exchange programme, and an Australian commitment to purchase up to 100 Korean-manufactured K9 Thunder self-propelled howitzers and 30 AS21 Redback infantry fighting vehicles.
Japan's New Prime Minister Commits to 2 Percent GDP Defence Spending Floor and Accelerated Missile Procurement
Japan's Prime Minister Sanae Takaichi, who took office in September 2026 following Fumio Kishida's retirement, committed on October 13, 2026 to maintaining Japan's defence spending at or above 2 percent of GDP and to accelerating the procurement of long-range strike capabilities including the extended-range Tomahawk variant and the domestically developed Type 12 surface-to-ship missile upgrade. Takaichi also announced plans to expand Japan's cyber defence force to 20,000 personnel by 2028.
Philippines and US Conduct Largest Combined Naval Drill in South China Sea, Amid Escalating Chinese Harassment
The Philippines and United States conducted their largest combined naval and coast guard exercise in the South China Sea from October 12 to 16, 2026, deploying 42 vessels and 12,000 personnel in a drill explicitly designed to test resupply convoy protection and combined response to Chinese coast guard interference. The exercise follows repeated incidents of Chinese water cannon and laser attacks on Philippine vessels resupplying Second Thomas Shoal.