By Shivam Patel
NEW DELHI (Wiseova) – Prime Minister Narendra Modi aims to turn India into a major manufacturing hub, resulting in billions of dollars worth of affordable iPhones and medicines. He now intends to include missiles, helicopters, and warships among the offerings for international buyers.
Following Ukraine as the globe’s second-largest arms importer, this country is broadening the capability of its government-run Export-Import Bank (EXIM) to provide extended-term, affordable financial assistance to customers. This includes entities facing constraints due to political instability or poor credit ratings, which hinder them from obtaining traditional funding methods. According to two Indian officials and three individuals with experience in the sector, these measures aim at facilitating such access.
Delhi plans to significantly boost the count of defense attachés at its overseas embassies under a fresh initiative. This move comes with the intention that certain weapons agreements will be handled directly by the government instead. Four Indian officials disclosed this information. The nation has specifically set its sights on countries traditionally dependent on Russian military equipment, according to two sources familiar with the matter.
India's strategies, disclosed to Wiseova by 15 individuals and not previously mentioned, represent an unparalleled initiative by the administration to involve itself in the hiring and funding of international purchasers amid global rearmament and shifting long-term political alliances.
Indian civil servants have historically concentrated primarily on purchasing combat planes from Russia’s Sukhoi and artillery pieces from the U.S., aiming to deter threats from China and Pakistan—India's two neighboring nuclear powers. Although India has maintained a capability for producing basic weaponry, domestic companies have just begun venturing into manufacturing advanced ammunition and gear.
The Indian defense and external affairs ministries, as well as Modi's office, did not respond to requests for comment. EXIM declined to comment.
"India is moving forward with the aim of boosting its defense exports," Defense Minister Rajnath Singh posted on X earlier this month.
A pivotal moment came during Russia's invasion of Ukraine in February 2022, as noted by an Indian official focused on expanding arms exports. Similar to others who were spoken to for this piece by Wiseova, the official requested confidentiality when addressing delicate governmental issues.
Unused western armories were dispatched to Kyiv as Russian facilities focused predominantly on producing ammunition solely for their military campaign. This situation forced countries that traditionally depended on Washington and Moscow—the leading global suppliers of weapons—to search for alternative sources.
With its history of buying and absorbing arms technology from both the West and Russia, Delhi started to get more inquiries, the official said.
Regarding Wiseova's queries, Russian state arms exporter Rosoboronexport pointed to earlier statements indicating they were negotiating with India for joint production and promotion of equipment aimed at countries friendly towards Russia.
The Pentagon declined to comment.
In the fiscal year 2023-2024, India generated $14.8 billion worth of armaments, marking a 62% increase from 2020 as per official records. As previously highlighted by Wiseova, some domestically-produced Indian ammunition was discovered at the frontlines in Ukraine aiding Kyiv’s defenses.
Delhi has started brokering meetings between visiting delegations and domestic arms contractors, as well as demonstrating more sophisticated equipment like combat helicopters during military exercises, four officials said.
Viraj Solanki, a research fellow at London's International Institute for Strategic Studies think-tank, said India faced challenges selling its newer and more high-end wares.
"Unless it starts using its indigenous equipment more frequently and demonstrating its effectiveness, it is likely to struggle to convince potential buyers," he said.
FAST AND CHEAP
Modi's administration aims to double arm and equipment exports to $6 billion by 2029. They anticipate that sales will expand beyond just ammunition, small arms, and parts for defense machinery, which make up most of their current military exports.
Delhi fell short of its $3.5 billion target in arm sales for the most recent fiscal year by roughly one-third; however, this figure represents a substantial rise compared to the $230 million worth of weaponry and defense equipment it exported ten years prior.
In an era where global budgets are strained and defense needs are growing, India is positioning itself partly as a comparatively affordable manufacturer.
India can manufacture 155 mm artillery ammunition for approximately $300 to $400 each, according to two Indian sources, whereas their European counterparts cost more than $3,000 apiece.
Indian companies have likewise offloaded howitzers at approximately $3 million apiece, according to one individual familiar with the matter, which equates to nearly half the price of a comparable European model.
As Western countries that decreased their artillery and other defense manufacturing following the Cold War are now hurriedly reviving these facilities, State-owned Munitions India remained one of the few Indian companies that maintained this capability.
Delhi, which has engaged in combat with both Pakistan and China in recent years, was facing a distinct strategic situation, according to retired Naval Commander Gautam Nanda, who heads KPMG’s Indian aerospace and defense consulting division. He stated, “Our manufacturing capabilities remained unaffected.”
Private manufacturers like Adani Defence and Aerospace and armor-and-ammunition maker SMPP are beginning to produce 155 mm artillery shells, which they said had already been ordered by foreign governments.
"Given these shifting circumstances, we certainly observe an enormous surge in demand for artillery munitions," stated Ashish Kansal, CEO of SMPP, who mentioned his firm is establishing a facility to produce high-caliber 155mm artillery rounds.
HIGHER-END WEAPONS
India intends to utilize enhanced funding for weapons exports through EXIM, an organization with a loan portfolio totaling $18.32 billion during the fiscal year 2023-24, as part of its strategy to elevate the standing of its products in the market.
This funding will primarily be managed through EXIM's commercial operations, backed by the government but not exclusively funded from the federal budget. An industry insider revealed that Indian defense manufacturers strongly advocated for this change.
Many banks in India have refrained from providing commercial loans for armaments due to their reluctance to engage with nations that might pose greater credit and political risks, according to an Indian diplomat who spoke to Wiseova.
This has significantly hindered India's ability to compete for large contracts against nations such as France, Turkey, and China, which often provide financial support or credit guarantees along with their offerings, according to the diplomat.
India aims to broaden its presence in the Brazilian market, where EXIM established an office in January.
New Delhi is negotiating the sale of Akash missiles to Brasília, as reported by two industry insiders and two Brazilian government representatives. Despite facing shortages in their domestic naval construction capabilities, Indian authorities are also exploring a potential agreement to construct warships for Brazil, stated the aforementioned officials from both countries.
India's Bharat Electronics, which produces parts for the Akash missile system, inaugurated a marketing office in São Paulo earlier this year, according to two Indian industry insiders.
They mentioned that EXIM was anticipated to assist in financing some of the deals in Brazil.
The Brazilian army stated via email to Wiseova that the creators of Akash had replied to their inquiry for information, and they have yet to make a choice regarding the acquisition.
Bharat Electronics did not respond to requests for comment.
STRATEGIC AUTONOMY
Delhi is focusing its arms-export strategy on countries in Africa, South America and Southeast Asia.
India aims to deploy at least 20 new defense attachés to various foreign embassies by March 2026, as stated by three Indian defense officials. Theseattaché positions will be stationed in countries such as Algeria, Morocco, Guyana, Tanzania, Argentina, Ethiopia, and Cambodia. The officials also mentioned that India feels confident about substantially increasing its arms sales to these nations.
An official mentioned that this change would involve decreasing the count of defense attachés stationed at Western embassies, with these personnel being reassigned to different locations instead.
The attachés have been assigned to promote Indian weaponry and provided with resources to assess the armament needs of the governments they are stationed in, according to the officials.
Similar to India, numerous countries have a history of purchasing military hardware from the Soviet Union and Russia, setting them apart from the NATO standards followed by many Western manufacturers.
An early success story is Armenia, where India appointed a defense attaché for the first time the previous year.
India has already diminished Russia's dominance in supplying arms to Armenia, a country that was once part of the Soviet Union but now believes it can’t depend solely on Moscow.
Between 2022 and 2024, it accounted for 43% of the weapons Armenia imported, as per data from the Stockholm International Peace Research Institute. This represents a significant rise from virtually negligible amounts between 2016 and 2018.
In March, Rosoboronexport stated that SIPRI, which depends on open-source information, lacks complete data.
(Reported by Shivam Patel in New Delhi; Additional reporting by Gleb Stolyarov in Moscow, Idrees Ali in Washington, Luciana Novaes Magalhaes and Manuela Andreoni in Brasilia, and Karen Lema in Manila; Edited by Katerina Ang)
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