India’s record defence exports have propelled it into Europe’s top three arms suppliers, with ammunition demand and industrial expansion driving a sharp shift from importer to exporter.
India has become the third-largest supplier of arms to Europe as the continent rushes to rebuild stocks depleted by the war in Ukraine and years of underinvestment in defence, Defence Secretary Rajesh Kumar Singh said in New Delhi. He said the shift reflects not only Europe’s “Rearm Europe” drive, but also a sharp expansion in India’s own manufacturing base, which has lifted the country’s defence exports to a record ₹38,424 crore, or about €3.6 billion.
Singh said demand from European buyers has been especially strong for standard ammunition, artillery shells and other calibres of munitions. The pattern marks a striking reversal for a country that was once far more familiar as a major importer of weapons than as a supplier to advanced markets. India is now shipping a broader range of military goods, from heavy ordnance to tactical helmets, night-vision equipment, drones and body armour.
The growth has been underpinned by a defence industrial network that has widened far beyond the state sector, Singh said. India now has 16 major public sector defence companies, nearly 840 large and medium-sized private firms and about 17,000 small and medium enterprises involved in supply chains, alongside a growing start-up ecosystem. The result, he said, is that domestic defence sales have climbed to nearly €17 billion, underscoring a stronger home market as well as a larger export base.
The export surge has also been linked to the geopolitical shock created by Russia’s invasion of Ukraine, which pushed European governments to restock and modernise quickly. Reuters has previously reported that the EU and NATO members have been working to replenish ammunition and other military hardware, creating opportunities for suppliers able to deliver at scale and on time. India has sought to position itself as one of those suppliers, using competitive pricing and improved production capacity to win contracts.
At the same time, India is trying to turn export momentum into deeper industrial partnerships. According to the government’s broader industrial policy, overseas firms interested in the Indian market will still have to meet local production requirements under the “Make in India” framework. Singh said India is also open to joint ventures with European companies, while maintaining its push to source more of its own capital defence spending domestically.
The broader strategic backdrop has changed too. The European Union and India signed a Security and Defence Partnership in January 2026, creating a formal framework for cooperation on issues including maritime security, cyber defence and counterterrorism. In that setting, India’s growing role as a supplier to Europe points to a relationship that is becoming more commercial and more strategic at the same time.
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