India Emerges as 3rd-Largest Arms Exporter to Europe

News Desk: India is emerging as a major supplier of defence equipment to Europe, with rising demand for ammunition and artillery shells amid the continent’s drive to strengthen military preparedness and replenish weapons stockpiles.

Defence Secretary Rajesh Kumar Singh recently said India had become the third-largest arms exporter to Europe over the past year, attributing the development to growing European demand for ammunition and the expansion of India’s domestic defence manufacturing industry.

The development marks a significant shift in India’s defence export landscape, as domestic manufacturers increasingly tap international markets at a time when European countries are boosting military spending and diversifying their supply chains.

India is now the third-largest arms exporter to Europe, driven by the “Rearm Europe” initiative. Defense Secretary Rajesh Kumar Singh noted exports hit a record ₹38,424 cr (~€3.6B), spanning artillery & gear to 80+ nations. https://t.co/uZduRce0Cu

— Israel Military Channel (@IsraelMilitaryC) October 24, 2026

European Rearmament Opens New Opportunities

Europe’s push to strengthen its military capabilities has accelerated since Russia’s full-scale invasion of Ukraine in February 2022. European governments have increased defence expenditure, procured additional ammunition and sought to replenish stocks supplied to Ukraine.

The European Union’s ReArm Europe initiative, linked to its Readiness 2030 agenda, aims to mobilise substantial resources for defence investment and expand the continent’s military-industrial capacity.

This growing demand has created opportunities for suppliers outside Europe, including Indian manufacturers capable of producing ammunition and other defence-related materials at competitive prices.

A Bloomberg report published in October 2026 highlighted a sharp increase in Indian shipments of ammunition-related products to Europe since the start of the Russia-Ukraine war. These products include artillery shells, mortar rounds, propellants and explosives.

The report also identified India as a major supplier of such products to several Eastern and Central European countries, reflecting the growing importance of Indian manufacturing in the region’s defence supply chains.

India’s Defence Exports Reach Record High

India’s growing presence in Europe coincides with a sharp rise in its overall defence exports.

According to the Ministry of Defence, India’s defence exports reached a record ₹38,424 crore in the financial year 2025–26, registering a 62.66 per cent increase over ₹23,622 crore in the previous financial year.

The expansion reflects the growing contribution of both public-sector defence enterprises and private manufacturers. Indian companies now supply a range of products, including ammunition, artillery systems, small arms, protective equipment, military components and specialised defence technologies.

Government initiatives such as Make in India and Aatmanirbhar Bharat have encouraged domestic production, strengthened manufacturing capabilities and reduced reliance on imported equipment.

The government has also sought to increase the participation of Indian companies in international defence markets, positioning exports as an important pillar of the country’s broader defence-industrial strategy.

Joint Ventures and Industrial Partnerships

India is also looking to deepen defence-industrial cooperation with European countries through joint ventures, technology partnerships and manufacturing collaborations.

Such arrangements could help Indian companies gain access to European procurement programmes while allowing overseas manufacturers to participate in India’s expanding defence production ecosystem.

Greater cooperation could eventually extend beyond ammunition and components to more sophisticated defence equipment and technologies. However, the scale of future opportunities will depend on procurement requirements, regulatory approvals, quality standards and the ability of Indian manufacturers to meet delivery schedules.

A Qualification on India’s Global Arms Ranking

India’s reported position among Europe’s leading arms suppliers should be understood in the context of the specific market and product categories involved.

Trade in ammunition, explosives and related materials is not directly comparable with the international rankings of major weapons systems, such as combat aircraft, tanks, warships and missile systems.

The Stockholm International Peace Research Institute assesses major arms transfers using a different methodology and time frame. Therefore, India’s reported rise in European ammunition exports does not automatically place it among the world’s largest exporters of major conventional weapons.

Nevertheless, the increase in shipments highlights India’s expanding role in a strategically important segment of the international defence market.

Outlook

Europe’s rearmament drive has created a significant opportunity for India’s defence industry. Continued demand for ammunition, rising domestic production and closer industrial partnerships could help Indian manufacturers establish a stronger and more durable presence in European markets.

The key challenge will be to sustain export growth, expand production capacity and move towards higher-value defence manufacturing while meeting stringent international standards.

India’s growing engagement with European defence supply chains underscores its ambition to become a more prominent global defence manufacturing hub. Whether the recent surge translates into long-term market leadership will depend on the country’s ability to convert short-term demand into lasting commercial and strategic partnerships.