India’s Expanding Footprint on the Global Arms Map: A Strategic Realignment of Defence Trade and Geopolitics

In a striking shift that is redefining the global arms trade landscape, India is emerging as a formidable exporter of defence systems and weaponry, with strategic implications that transcend commerce. Once a nation heavily dependent on imports to meet its defence needs, India has over the past decade meticulously cultivated its defence industrial base—through indigenous innovation, public-private collaboration, and robust diplomatic engagements—transforming itself into a major player in the global arms market.

The recent flurry of arms deals, especially with Armenia and the Philippines, is not merely a commercial success story—it reflects New Delhi’s growing geopolitical assertion, particularly in regions historically outside its direct sphere of influence. As the numbers swell and systems like the BrahMos, Akash, and Pinaka gain traction globally, India’s defence exports are increasingly becoming an instrument of diplomacy and strategic alignment.

Armenia: A Strategic Pivot in the South Caucasus

Armenia has become a surprising but pivotal buyer of Indian military hardware, turning to New Delhi to meet its critical defence needs amidst a complex regional security matrix shaped by its adversarial relations with Azerbaijan—backed by Turkey and tacitly supported by Pakistan.

Between 2022 and 2024, India accounted for a staggering 43% of Armenia’s total arms imports. In fiscal terms, Armenian contracts with Indian firms have reached approximately $600 million—a figure confirmed in a Finance Ministry report—making Yerevan the single largest importer of Indian defence systems.

These deals have brought a range of sophisticated Indian-made systems into Armenia’s inventory:

Pinaka Multi-Launch Rocket Systems: Developed by the DRDO and produced by multiple Indian firms, Pinaka offers precision and high-volume firepower, providing Armenia a crucial capability edge in the rugged terrain of the Nagorno-Karabakh conflict zone.
Akash-1S Air Defence Missile System: Armenia's $720 million order for 15 units marks the first international sale of the Akash system, developed by Bharat Dynamics Limited. Capable of neutralising aerial threats within a 25-km radius, the system is slated for delivery in 2025.
Dornier-228 Surveillance Aircraft: Enhancing situational awareness and ISR (intelligence, surveillance, reconnaissance) capabilities, the Dornier-228 allows Armenia better control over its contested airspace.
Miscellaneous Systems: India has also delivered anti-tank guided rockets, bulletproof jackets, night-vision equipment, small arms, and advanced weapon-locating radars—further modernising Armenia’s overall defence posture.

This pivot away from Moscow is significant. From 2011 to 2020, Russia supplied 94% of Armenia’s arms, including strategic assets like the Iskander missile system and Su-30SM fighters. India’s rapid inroads into this market—filling a void left by Russia’s overstretched defence industry amid the Ukraine war—signal a major geopolitical recalibration.

India’s deeper engagement in the South Caucasus serves as a subtle but clear counter to the Ankara-Islamabad-Baku axis, bolstering its diplomatic stature in a region that’s increasingly viewed as a crossroads of Eurasian security.

Philippines: A Strategic Beachhead in Southeast Asia

Parallel to its Westward tilt, India is steadily deepening defence ties in Southeast Asia. The Philippines, engaged in maritime brinkmanship with China in the South China Sea, has begun to see New Delhi as a reliable and strategic partner.

After the landmark $375 million deal signed in January 2022 for the BrahMos supersonic cruise missile system, India delivered the first battery in April 2024, followed by a second consignment in early FY 2025. The weapon, co-developed by India and Russia, provides Manila with a high-speed anti-ship capability that is expected to act as a deterrent against naval incursions.

Now, Manila is eyeing the Akash surface-to-air missile system, with plans to finalise a procurement deal in the financial year beginning April 2025. While exact figures remain classified, the deal is anticipated to surpass the $230 million sale of Akash missiles to Armenia, further establishing the system’s credibility in diverse combat environments.

These deals have geopolitical undertones. For India, the Philippines represents not just a market but a strategic partner in the Indo-Pacific architecture. Defence cooperation with Manila enhances deterrence capabilities of like-minded nations resisting Chinese maritime assertiveness, thereby reinforcing India's Act East policy.

Soaring Export Numbers: India’s Defence Industry Comes of Age

The momentum is palpable. According to the Ministry of Defence, India’s defence exports surged to a record high of ₹23,622 crore (~$2.76 billion) in FY 2024-25, a 12% rise from the previous year. This includes ₹15,233 crore from the private sector and ₹8,389 crore from Defence Public Sector Undertakings (DPSUs)—up 42.85% year-on-year for DPSUs alone.

In a span of just over a decade, India has reversed the trend of dependency. In 2013-14, the defence budget stood at ₹2,53,346 crore. Fast forward to 2024-25, it has more than doubled to ₹6,21,940 crore—backing the country’s ambition to achieve strategic autonomy through indigenisation.

The "Make in India" initiative, coupled with liberalised FDI policies and strategic partnerships with global OEMs, has catalysed this transformation. From missiles to surveillance systems, Indian firms like Bharat Dynamics Limited, Hindustan Aeronautics Ltd., and private players such as Larsen & Toubro are now part of the global arms supply chain.

Over 100 countries now import Indian arms and equipment. This includes not just Armenia and the Philippines, but also nations in Africa, Latin America, and Southeast Asia. India’s ability to offer cost-effective yet technologically competent solutions is turning heads, especially among countries that seek to diversify away from traditional suppliers like Russia, the US, and China.

Geopolitical Capital: Defence Trade as Strategic Leverage

India’s rising profile as a defence exporter is not just about numbers—it is about leverage. Defence exports are a tool of soft power, enabling deeper security cooperation, joint exercises, military training, and interoperability.

Take Armenia, for instance. The arms deals are likely to lead to enhanced diplomatic coordination, possibly joint ventures, and a broader presence of Indian defence personnel and advisors. Similarly, in the Philippines, the sale of BrahMos and Akash could evolve into joint maritime exercises and capacity-building initiatives.

By aligning defence exports with its foreign policy, India is positioning itself as a net security provider in the Indo-Pacific and beyond—a role traditionally reserved for global powers.

Moreover, this also offers a counterweight to China’s aggressive arms diplomacy, particularly in South Asia and Africa. As Beijing supplies drones, naval systems, and combat platforms to Pakistan, Bangladesh, and Myanmar, India’s expanding defence footprint serves as a balancing force—redefining the regional order one export at a time.

India’s Strategic Alliances:

India’s ascent as a defence exporter is no longer a footnote—it is the headline. From the hills of the Caucasus to the islands of Southeast Asia, New Delhi is scripting a new narrative: one where arms exports are not just about commerce, but about crafting strategic alliances, influencing regional equations, and asserting sovereign capability.

As the global arms market undergoes a post-COVID and post-Ukraine realignment, India finds itself in a sweet spot—a trusted partner offering reliable alternatives, a growing industrial base with world-class R&D, and a strategic vision that marries commerce with diplomacy.

What was once an aspiration is now policy. And that policy is reshaping the very structure of India’s role in the international order.

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