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According to defence sector data released during Financial Year 2025тАУ26, which of the following statements correctly describes IndiaтАЩs defence export performance?
India completely discontinued private-sector participation in defence manufacturing and restricted exports to domestic requirements only
IndiaтАЩs defence exports reached a record тВ╣38,424 crore during FY 2025тАУ26, registering substantial growth over the previous financial year
India replaced defence manufacturing exports with exclusive imports of strategic military platforms from foreign suppliers
IndiaтАЩs defence exports declined significantly during FY 2025тАУ26 due to reduced international demand for indigenous defence equipment
IndiaтАЩs defence exports reached a record тВ╣38,424 crore during FY 2025тАУ26, registering substantial growth over the previous financial year
India has achieved significant growth in its defence exports, reaching a record value of тВ╣38,424 crore in FY 2025тАУ26. This growth is driven by the 'Make in India' initiative, which focuses on indigenization and promoting private-sector participation to reduce reliance on imports.
India has achieved significant growth in its defence exports, reaching a record value of тВ╣38,424 crore in FY 2025тАУ26. This growth is driven by the 'Make in India' initiative, which focuses on indigenization and promoting private-sector participation to reduce reliance on imports.
Think of it like a local workshop that previously only fixed cars now building its own high-quality engines; as the workshop gets better and faster (efficiency), it starts selling those engines to other cities, growing from a local service center to a global supplier.
MAKE (Manufacturing, Autonomy, Knowledge, Exports)
Export┬аGrowth┬аRate=(Previous┬аYear┬аExportCurrent┬аYear┬аExportтИТPrevious┬аYear┬аExportтАЛ)├Ч100%
The principle involves 'Indigenization' and 'Economies of Scale', where domestic manufacturing reduces the unit cost C of production as output Q increases, following the learning curve effect C=aQтИТb. By increasing the total output, India leverages manufacturing efficiencies to make indigenous platforms competitive in the global market, thereby boosting exports.
Promotion of Defence Public Sector Undertakings (DPSUs) and private firms.
Streamlining of export authorization processes to enhance ease of doing business.
Increased focus on exporting high-technology platforms like BrahMos, LCA Tejas, and artillery systems.
Reduces foreign exchange outflow on defence imports.
Develops indigenous technological ecosystem and R&D.
Creates high-skilled employment opportunities.
High initial capital expenditure required for R&D.
Long gestation periods before indigenous systems become market-ready.
Export of military hardware to friendly foreign nations.
Expansion of the domestic defence industrial corridor.
India is now exporting defence items to over 85 countries.
Option A is incorrect because the policy promotes, rather than discontinues, private sector participation.
Option C is incorrect as the government policy is moving towards self-reliance (Atmanirbhar Bharat), not increased exclusive reliance on foreign imports.
Option D is incorrect because current data confirms an upward trend, not a decline.
B is correct тАФ IndiaтАЩs defence exports reached a record тВ╣38,424 crore during FY 2025тАУ26, registering substantial growth over the previous financial year.
In competitive exams, always link 'Defence Exports' with the 'Atmanirbhar Bharat' scheme and 'Defence Industrial Corridors', as these are recurring themes in current affairs.
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