The arms trade surplus grew tenfold, reaching $691 million in FY26 from $63 million in FY18.
Reports have recently emerged that the Indian government is in talks with the UAE to sell its BrahMos supersonic cruise missile system.
This development highlights India's steady rise in arms exports, characterised by an expanding trade surplus over the past decade that peaked in 2025-2026 (FY26).
Data reveals that India's arms trade surplus grew tenfold in eight years to $691 million in FY26 from $63 million in FY18.
The share of arms in India's total goods exports remains minuscule, but it rose threefold in the past eight years, while the share in imports doubled.
If we exclude the volatile petroleum sector from total exports, the share of arms in India's outbound shipments was a bit higher at 0.21 per cent in FY26, rising five times in eight years.
Share of arms in India's imports, excluding petroleum, stood at 0.06 per cent in FY26, double that in FY18.
This financial surge aligns with a major geopolitical shift: Earlier the biggest partners such as the US and Israel have now been replaced by Armenia, Romania, and Slovenia.
This realignment reflects changing global dynamics: Strained ties with Turkiye likely prompted India's increased defence support to Armenia, while deeper European engagement boosted exports to Romania and Slovenia.
Concurrently, the product mix has evolved, with bombs and grenades surging from 28 per cent of total arms exports in FY21 to 78 per cent in FY26.
1. Consistent arms trade surplus
2. India's arms exports shift to European nations
3. Significant rise in bombs, grenades and other exports
Feature Presentation: Aslam Hunani/Rediff
