News Desk
NEW DELHI — Prime Minister Narendra Modi’s vision to transform India into a global manufacturing powerhouse has already turned the country into a hub for low-cost iPhones and pharmaceuticals. Now, he is setting his sights on a more ambitious goal: exporting missiles, helicopters, and battleships to foreign governments, bolstered by attractive financing from India’s state-owned Export-Import Bank.
India, the world’s second-largest arms importer after Ukraine, is leveraging its growing defense manufacturing capabilities to capture international markets traditionally dominated by Russia and Western nations. In 2023-24, India’s defense exports surged to $2.63 billion, a 32.5% increase from the previous year, driven by products like the BrahMos supersonic cruise missile and the Akash air defense system. The government aims to reach $6 billion in annual defense exports by 2028, a target analysts say is within reach given India’s competitive pricing and technological advancements.
To facilitate this expansion, the Export-Import Bank of India is offering long-term, low-cost loans to international buyers, particularly in Asia, Africa, and Latin America, where access to conventional financing is often limited. This strategy, which mirrors approaches used by China, has already yielded results. In January 2022, India secured a $375 million deal to supply BrahMos missiles to the Philippines, and negotiations are underway to sell Akash missiles and build battleships for Brazil.
“India’s defense exports are not just about economic gains; they’re about building strategic partnerships,” said Rajnath Singh, India’s defense minister, at a recent industry summit in New Delhi. “Our products are reliable, cost-effective, and backed by a commitment to mutual growth.”
The push into defense exports builds on India’s success in other sectors. In 2023-24, India produced iPhones worth $14 billion, with exports reaching $12.1 billion, making it a key player in Apple’s global supply chain. The pharmaceutical sector, often called the “pharmacy of the world,” exported $27.9 billion in generic drugs, supplying affordable medicines to over 200 countries. These achievements, fueled by Mr. Modi’s “Make in India” initiative, have created millions of jobs and attracted billions in foreign investment.
The defense sector is following a similar trajectory. Companies like Hindustan Aeronautics Limited, which manufactures the versatile Advanced Light Helicopter, and Mazagon Dock Shipbuilders, known for advanced frigates, are scaling up to meet global demand. The BrahMos missile, a joint venture with Russia, has drawn interest from Southeast Asian nations seeking to counter China’s influence in the South China Sea.
India’s financing model gives it a competitive edge. The Export-Import Bank, with a loan portfolio of $18.32 billion in 2023-24, is expanding its presence in markets like Brazil, where it opened an office in January 2025. By offering flexible terms, India is appealing to countries wary of Western conditions or affected by sanctions on Russia, a traditional arms supplier.
This shift is not without challenges. India’s shipbuilding capacity is strained, and competition from established exporters like the United States and France remains fierce. Yet, analysts are optimistic.
For Mr. Modi, the stakes are high. Expanding defense exports aligns with his goal of reducing India’s reliance on arms imports while enhancing its geopolitical influence. By supplying arms to nations like Vietnam and Armenia, India is forging alliances in critical regions, countering China’s growing assertiveness.
As India navigates this new frontier, its ability to deliver high-quality defense products at competitive prices is winning global trust.
