India has emerged as the third-largest exporter of arms to Europe, according to Defence Secretary Rajesh Kumar Singh. The development has been attributed partly to increased European demand for military equipment under the “ReArm Europe” initiative and the rapid expansion of India’s domestic defence manufacturing sector.
India Emerges As 3rd Largest Exporter of Defence Goods To Europe: Defence Secretary
According to the Defence Secretary, India’s defence exports have reached an all-time high of ₹38,424 crore, equivalent to approximately €3.6 billion.
He attributed India’s reported rise to the third position among arms exporters to Europe partly to increased demand for standard ammunition, artillery shells and ammunition of different calibres.
India’s defence exports now cover a wide range of products, including:
- Standard ammunition and artillery shells.
- Large- and small-calibre ammunition.
- Small arms and artillery gun systems.
- Defence components.
- Tactical equipment, including helmets and bulletproof jackets.
India now exports defence equipment to more than 80 countries, demonstrating the expanding reach of its domestic defence industry.
What Is the ReArm Europe Initiative?
The ReArm Europe initiative is a European effort to strengthen defence capabilities and increase military preparedness. The resulting demand for defence equipment has created opportunities for international suppliers, including Indian manufacturers.
The increased requirement for ammunition and artillery-related supplies has reportedly contributed to India’s growing defence exports to European markets.
This development also highlights the importance of reliable supply chains and the ability of manufacturers to scale up production in response to changing security requirements.
Expansion of India’s Defence Manufacturing Ecosystem
Defence Secretary Rajesh Kumar Singh noted that India’s defence manufacturing sector has expanded considerably over the past decade.
The ecosystem, which was traditionally centred on major public-sector defence companies, now includes a substantial number of private enterprises, small businesses and startups.
According to figures cited by the Defence Secretary, the sector comprises:
- 16 major public-sector companies.
- Approximately 840 large and medium-sized enterprises with industrial licences.
- Around 17,000 small enterprises, including startups.
The value of domestic defence sales was reported at approximately €17 billion.
This broader industrial base helps India diversify production, encourage private-sector participation and respond to growing domestic and international demand.
Government’s Focus on Atmanirbhar Bharat
The government is working to increase domestic production and reduce dependence on imported defence equipment.
According to Singh, the policy objective is to ensure that approximately 75% of annual defence capital expenditure is spent within India. He estimated annual defence capital expenditure at around US$20–25 billion.
Priority is given to IDDM products, which stands for Indian Designed, Developed and Manufactured.
The IDDM approach supports indigenous research, design, manufacturing and technological capability. It is intended to strengthen India’s technological sovereignty and build a more self-reliant defence industry.
Diversification of Defence Partnerships
India has historically relied significantly on Russia for defence equipment. However, the Defence Secretary noted that this dependence has declined over time as India has diversified its sources of military supplies.
France and Israel are among India’s important defence partners. Singh stated that France accounts for approximately 15% of India’s defence imports, with Israel holding a broadly similar share, after Russia.
India is also strengthening strategic engagement with other European countries, including Greece and Cyprus.
Diversification helps India broaden its international partnerships, reduce reliance on individual suppliers and develop new industrial and technological relationships.
India–Europe Defence Industrial Cooperation
India intends to expand its participation in European defence procurement programmes through industrial partnerships and joint ventures.
The proposed approach involves cooperation in both directions:
- Indian companies in Europe: Indian defence manufacturers could establish joint ventures in European countries to participate in their defence procurement programmes.
- European companies in India: European firms could establish joint ventures in India to access the Indian defence market and manufacture locally.
- Integrated supply chains: Greater industrial cooperation could connect Indian and European manufacturers and improve their ability to meet international requirements.
The Defence Secretary also emphasised the importance of local manufacturing requirements. He referred to localisation requirements of approximately 25% in Europe, compared with a minimum of 50% in India, while noting that the broader objectives of these policies are similar.
Such partnerships could create opportunities for technology cooperation, manufacturing expansion and improved access to international markets.
Significance for India
India’s growing role in the European defence market is significant for several reasons.
1. Higher export potential: Increased international demand can create opportunities for Indian defence manufacturers.
2. Stronger domestic industry: A wider network of public- and private-sector companies supports production capacity and innovation.
3. Technological sovereignty: Greater emphasis on IDDM products encourages indigenous design and development.
4. International partnerships: Joint ventures can improve access to foreign procurement programmes and encourage industrial cooperation.
5. Economic opportunities: Expanding manufacturing and exports can support investment, employment and the development of specialised defence capabilities.
