India is accelerating its push for defence self‑reliance as arms exports surge to record levels and new markets open due to shifting global power dynamics . The latest data shows India exported defence equipment worth 384 billion rupees in 2025‑26, a 63% increase from the previous year and 56 times higher than in 2013‑14, before Prime Minister Narendra Modi took office .
India now ranks 27th among global arms exporters, with shipments valued at three times those of Japan, which stands at 36th, according to SIPRI . New Delhi aims to raise exports to 500 billion rupees by 2029, reaching more than 100 countries .
Armenia, the Philippines and Vietnam have emerged as major buyers despite not appearing in India’s export records for decades. Armenia accounted for 32% of India’s defence exports between 2021 and 2025, second only to the Philippines at 42%, followed by Vietnam at 11% .
India has capitalised on Armenia’s strategic shift away from Russia after Moscow failed to support Yerevan during conflicts with Azerbaijan in 2022 and 2023 . Russia previously supplied 95% of Armenia’s arms, but India has now replaced it as the country’s top supplier, providing 94% of Armenia’s imports between 2023 and 2025, including Akash missile systems and rocket launchers .
India’s growing presence in the Philippines and Vietnam is driven by their need to counter China’s maritime assertiveness. India has supplied BrahMos cruise missiles, coastal defence systems and naval vessels to these countries .
The rise of private Indian defence firms is also reshaping the sector. Bengaluru‑based SSS Defence expects 200% growth this year and 300% next year, with exports to Armenia, Nepal and soon Sri Lanka . The company is also entering a UK Ministry of Defence tender to replace rifles .
CEO Vivek Krishnan said the firm delivers products at half the price of state‑owned manufacturers and attributes its efficiency to the Toyota‑inspired kaizen model adopted from its parent company’s automotive background .
Global supply disruptions caused by the Ukraine war have weakened the production capacity of major arms exporters such as the United States and Russia, creating new opportunities for India . South Asian buyers have also expressed dissatisfaction with Chinese suppliers over poor maintenance and inconsistent product quality, giving Indian firms a competitive edge .
SSS Defence is now eyeing the Japanese market, saying it can offer rifles similar to Japan’s Type 20 at one‑third of the price .
India’s expanding defence footprint reflects a broader strategy to strengthen self‑reliance, diversify export markets and position itself as a key supplier at a time when global arms production is under strain.