Three times more defence exports in the next 3 years: PM Modi sets target for Indian defence sector

India, for decades one of the world's biggest importers of defence equipment, now exports to 75 countries, Modi said

Prime Minister Narendra Modi on Monday set out a defence export target three times higher than India’s current military export of $1.5 billion over the next three years, a big ask considering that India remains one of the world’s top arms importers because of which military firms around the world made a beeline for Aero-India, 2023, eying the lucrative market.

"India has rejuvenated its defence sector in the last 8-9 years. We consider it just the beginning and aim to take defence exports to $5 billion by 2024-25. We will strive to be one of the world’s largest defence manufacturing bases,” the Prime Minister said, inaugurating the 14th edition of the biennial air show here.

Without identifying any nation, the Prime Minister said India was not just a defence market, but emerging as a suitable partner for countries looking for technologies to fulfill their security needs.

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He cited Tejas fighter jets, indigenous aircraft carrier INS Vikrant, HAL helicopter factory at Tumakuru and the Tata Airbus plant in Vadodara to make transport aircraft for the IAF as examples of India’s strength in defence manufacturing.

Later, Defence Minister Rajnath Singh told the CEOs of the top armament companies that India did not want to remain an assembly workshop but would manufacture cutting-edge products as was the need of the hour.

Singh said the issues of both defence export and joint production will be discussed when he meets the defence ministers from 32 countries on Tuesday.

India’s military export remained below par for decades before New Delhi decided to punch above its weight on the defence export targets.

India's defence exports have grown by eight times in the last five years with New Delhi exporting military hardware to over 75 countries. Some of the items that the Defence Ministry wants to export include home-grown Tejas LCA, Brahmos cruise missiles, Pinaka multi barrel rocket launcher and Dhrub advanced lightweight helicopters.

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Globally the defence export market is dominated by the USA followed by Russia and France. Taken together the three countries account for almost 70% of the global defence export. The next two countries on the list, Germany and China account for almost another 10%. The ten top exporter’s list don’t figure India.

Officials said B2B partnerships worth Rs 75,000 crore were to be inked during Aero-India 2023, but how much of that would translate into commercial deals remained uncertain.