India Is Pushing russia out of Traditional Arms Markets
4/22/2025
India is seriously changing its approach to defense exports, transforming from a traditional arms importer to an active player in the global arms and military equipment (AME) market.
New Delhi is using its state-owned Export-Import Bank as a “soft power” tool – it will offer cheap long-term loans to countries with political and credit risks. This allows potential buyers to access India’s AME without putting significant pressure on their budgets.
India is also increasing the number of military attaches abroad by at least 20 new positions. This will help to establish defense contacts directly through government channels, bypassing intermediaries and creating stable long-term relationships.
New Delhi is focusing on markets that have traditionally been dependent on russian weapons – Africa, South America, and Southeast Asia. Against the background of the rf’s declining share in the global AME market (from 21 % to 7.8 %), India sees an opportunity to occupy this niche.
In 2023–2024, India demonstrated a significant increase in arms production – $14.8 billion, which is by 62 % more than in 2020. The Indian government intends to export up to $6 billion a year by 2029, which is three times more than now.
New Delhi relies on affordable, competitive prices: a 155 mm artillery shell made in India costs $300–400 versus $3000+ in Europe. Howitzers are also half the price of Western ones. This is important for countries with limited defense budgets that need to maintain combat capability at minimal cost.
Recently, New Delhi has sought to change the perception of itself as a country with cheap smartphones or medicines by focusing on its high-tech military-industrial complex. This vector of development potentially strengthens India’s position as a new serious player in the defense sector.
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