India Poised to Become the Next Global Defence Power: The World Is Watching

New Delhi: India’s defence exports have surged dramatically in recent years, positioning the country to emerge as a major player in the global arms market. Amidst geopolitical turmoil, trade disruptions, and increasing military conflicts worldwide, India now has a unique opportunity to expand its defence industry and reduce reliance on imports. Experts note that countries of the Global South, in particular, could become key markets for Indian-made weaponry.

A Transformative Decade

Over the past decade, India’s defence sector has undergone a profound transformation. Once entirely dependent on imports and dominated by state-owned companies, the sector has benefited from policy reforms, institutional changes, and government prioritisation, leading to a near-complete overhaul. Today, with global supply chains fragmented and nations seeking reliable partners, India is strategically positioned to become a major manufacturing hub for defence equipment.

Much like the United States, which became a global power after supplying arms to both sides during World War II, India now has a historic opportunity to leverage its domestic defence capabilities. Expanding indigenous defence manufacturing can boost industrial growth, increase exports, enhance technological capability, and strengthen national security simultaneously.

Reducing Import Dependence

Historically, India’s defence industry faced a paradox: despite being one of the world’s largest arms importers and possessing a vast domestic market, the country failed for decades to develop a competitive indigenous industrial base. Defence production was largely limited to government-owned factories, with innovation and private sector participation stifled.

Over the past ten years, reforms in procurement, licensing, export controls, and FDI policies have opened the sector. Import dependence has been reduced, domestic procurement encouraged, and the focus shifted from mere assembly to developing a complete indigenous ecosystem. As a result, domestic production is rising, exports are reaching new heights, and a long queue of indigenous weapons and equipment is ready for deployment.

Today, the defence industrial ecosystem includes major private players, small and medium enterprises, and innovative start-ups. Companies are being incentivised to innovate, compete, and develop new products, rather than relying solely on government contracts.

With the Union Budget scheduled for 1 February, all eyes are on how India will consolidate these gains, address remaining gaps, and lay the groundwork for long-term strategic defence manufacturing. Analysts believe this is a defining moment for India to secure a global leadership position in defence exports.