Rearm Europe Drives India's Rise in Defence Exports
A surge in European demand for military hardware has pushed India into the top three arms exporters to the continent, according to Defence Secretary Rajesh Kumar Singh. Addressing journalists on Friday, he said India's defence exports have hit a record Rs 38,424 crore, or about 3.6 billion euros.
Singh said India became the third-largest supplier of weapons to Europe in the last twelve months. He attributed this mainly to the Rearm Europe initiative, which has created fresh demand for defence goods across the region.
As a result, India has started shipping large quantities of standard ammunition, artillery shells and large and small calibre munitions to European customers.
The defence secretary outlined how the country's manufacturing base has evolved. In the past ten years, the sector has widened considerably. Apart from 16 large state-run defence companies, around 840 large and mid-sized private firms and nearly 17,000 small units, including startups, now operate in the field. This diverse industrial structure is also reflected in domestic sales, which have reached close to 17 billion euros.
India is now exporting defence products to over 80 nations, Singh said. The government wants to spend 75 per cent of its annual defence capital expenditure, which ranges between 20 and 25 billion dollars, within the country. Priority is being given to products designed, developed and manufactured in India, known as IDDM, to ensure technological self-reliance.
He pointed out that India's defence exports extend beyond heavy weapons and ammunition. They include tactical equipment such as helmets and bulletproof jackets, and small arms as well.
Singh noted that talks and contract processes for defence procurement are underway in Southeast Asia and other regions. The proposals cover a range of defence equipment, small arms and artillery systems.
He recalled that India once relied mostly on Russia for its defence equipment. That reliance has declined over the years, and India has broadened the sources of its defence imports. Many Russian-origin platforms are still in use, but India's partnerships with France and other European countries have grown stronger. France now accounts for roughly 15 per cent of India's defence imports after Russia, and Israel has a similar share.
Singh described his recent trip to Greece and Cyprus, saying India shares considerable strategic interests with both. He called them new partners who are also important for building access to Europe.
He said diversifying supply sources is helping India increase output in line with international requirements. India intends to expand its role in European defence procurement programmes and plans to form joint ventures in European nations. European partners, in turn, will be encouraged to set up joint ventures in India to enter the domestic market. European countries may also participate in Indian procurement programmes, but must follow the government's Make in India conditions.
Finally, Singh expressed hope that the proposed India-Europe partnership agreement would serve as a foundation for closer integration of supply chains between defence manufacturers in both regions, further strengthening production and cooperation.