India’s defence exports are set to gain momentum as European nations ramp up spending to reduce their reliance on the United States for security.
India’s defence exports are set to gain momentum as European nations ramp up spending to reduce their reliance on the United States for security. (Image:DC)
New Delhi: India’s defence exports are set to gain momentum as European nations ramp up spending to reduce their reliance on the United States for security. A report by brokerage firm Nuvama highlights that Europe’s limited manufacturing capacity and workforce shortages are creating opportunities for Indian defence manufacturers.
With the Pentagon proposing $50 billion in annual budget cuts, European countries are under growing pressure to strengthen their own defence capabilities. This shift could lead to an influx of European defence orders as early as the first half of FY26. Given Europe’s production constraints, Indian companies are well-positioned to capitalize on the rising export demand.
“Europe’s defence expansion is constrained by limited local manufacturing capacity and skilled workforce shortages, especially in aerospace and missile supply chains. As a result, European nations are increasingly seeking partnerships with Indian defence manufacturers,” the report stated.
India’s defence exports are expected to reach ₹203 billion in FY25, with a government target of ₹500 billion by FY29. On the domestic front, the Indian government plans to place ₹1.5 trillion worth of large-scale defence orders by March 2025, aiming to accelerate the slow ordering momentum in FY25 and boost defence stocks.
The reduction in US military aid to Ukraine has exposed NATO’s heavy dependence on American defence funding. Over the past decade, the U.S. has contributed approximately 70% of NATO’s total defence expenditure, averaging 3.4% of its GDP. However, with Washington scaling back its financial commitment, Europe faces mounting pressure to increase its defence spending.
India’s defence exports reached a record ₹21,083 crore in FY 2023-24, marking a 32.5% growth from the previous fiscal year’s ₹15,920 crore. Over the last decade, exports have surged 31 times compared to FY 2013-14, driven by contributions from both the private sector and Defence Public Sector Undertakings (DPSUs), which accounted for 60% and 40% of exports, respectively.
With increasing global defence demand and a strong domestic push, India’s defence sector is at a pivotal point, poised for significant growth in the years ahead.
( Source : Asian Age )
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