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Why Defence Tech Could Be India’s Next Global Software Boom
M
Moneycontrol•08-10-2026, 08:25
Why Defence Tech Could Be India’s Next Global Software Boom
- •India's defence exports have surged dramatically from Rs 686 crore in 2013-14 to over Rs 38,424 crore in FY26, signaling a major structural shift.
- •Indigenously developed systems like the Akash missile system and BrahMos are gaining international traction, with exports to Armenia, the Philippines, and Vietnam.
- •Similar to the 1990s IT services boom, India is succeeding in the defence sector through cost-competitiveness, reliable execution, and combat-proven hardware.
- •The post-sale services tail, including maintenance, spare parts, and training, offers massive long-term revenue potential akin to managed IT services.
- •Sustaining this growth will depend on building robust institutional infrastructure, such as export financing and political risk cover, to match global competitors.
Key Questions Answered
India's indigenous Akash short-range air-defence platform has been exported to Armenia, Tajikistan, and Turkmenistan, as confirmed by Defence Secretary Rajesh Kumar Singh in October 2026.
India's defence exports crossed Rs 38,424 crore in FY25-26, marking a significant growth of over 5,500 percent over a 12-year period from Rs 686 crore in 2013-14.
The Philippines became the first export customer for the BrahMos supersonic cruise missile, followed by agreements with Vietnam and Indonesia.
