Media: India expands arms exports with strategic financing, diplomatic push Shifting buyers from Russian supply

India is making a significant push to expand its arms exports, with a focus on low-cost, high-quality defence products aimed at countries traditionally reliant on Russia and the West.

Under Prime Minister Narendra Modi’s leadership, India is leveraging state-backed financing and a diplomatic outreach strategy to increase its share in the global arms market, Caliber.Az reports, citing Reuters.

The government’s goal is to double defence exports to $6 billion by 2029, up from a modest $230 million a decade ago.

Central to this expansion is the Export-Import Bank of India (EXIM), which is increasing its long-term, low-cost loan offerings to clients with higher political or credit risks. This initiative is aimed at addressing financing gaps that have traditionally hindered India’s ability to compete with other arms exporters like France, Türkiye, and China, which often bundle loans with their deals.

India’s defence strategy targets markets in Africa, Southeast Asia, and South America, with new defence attachés being deployed to key countries like Brazil, Algeria, and Argentina. These attachés will promote Indian arms and assess the military needs of host nations, focusing on regions where India sees potential to replace Russian military hardware.

A key area of growth for India is in artillery and high-end equipment like combat helicopters, missiles, and battleships, which are being marketed as more affordable alternatives to Western products. The government is also brokering direct arms deals, particularly with nations seeking to diversify away from Russian arms suppliers due to the shifting global political landscape.

With India’s defence industry rapidly growing—producing $14.8 billion worth of arms in 2023-2024, a 62% increase since 2020—the country is positioning itself as an emerging leader in the global arms market, offering a mix of cost-efficiency and strategic autonomy to its international clients.

By Aghakazim Guliyev