Indian defence exports show resilience amid Covid-19 challenges

Indian defence exports have been resilient in the face of the Covid-19 pandemic, newly updated data from the Ministry of Defence (MoD) in New Delhi suggests.

The data, which is partly based on the value of export authorisations issued to private-sector firms, shows that India’s defence exports increased in fiscal year (FY) 2019–20 but then declined in FY 2020–21, which ended in late March.

Indian defence exports in FY 2020–21 were valued at INR84.34 billion (USD1.14 billion): a 7.5% decline against the INR91.11 billion recorded in 2019–20.

Indian defence exports declined by 7.5% in FY 2020-21 to INR83.34 billion compared to FY 2019–20 (Indian MoD)

The FY 2019–20 figure was a 9.5% increase over the INR83.20 billion in sales recorded for FY 2018–19, which itself was a jump of nearly 80% over the INR46.82 billion in exports posted in FY 2017-18. According to the data, Indian defence exports in FY 2016-17 were INR15.21 billion.

The data also attributes the majority of sales in recent years to the private sector.

Sales from state-owned defence public sector undertakings (DPSUs) and the network of 41 defence factories under the Ordnance Factory Board (OFB) have remained below INR10 billion in the past three fiscal years.

Private-sector sales – based on export authorisations – were valued at INR72.71 billion in FY 2020–21 and INR80.07 billion in FY 2019–20, representing 86% and 88% of total exports in those two years respectively, with state-owned enterprises securing the remainder. In FY 2018–19 private-sector export authorisations were valued at INR73.87 billion: 89% of total international military sales in that year.

In FY 2016–17 and FY 2017–18 sales from the state-owned enterprises were worth 87% and 32% of total exports in those two years respectively.