India Defence Orders Surge: Domestic Shift Overtakes Exports
Overview
Indian defence-tech startups and private manufacturers are witnessing a significant pivot as domestic orders now outpace exports. This surge is driven by accelerated procurement cycles, emergency buying, and a strong 'Make in India' push. Companies like Gopalan Aerospace and Rangsons are reporting substantial revenue growth and increased domestic order pipelines, prompting capacity expansions and new investment decisions. While large strategic platforms still lean on exports, the overall trend signals robust growth for indigenous defence players.
Domestic Demand Ascendant
Indian defence-tech startups and private manufacturers are increasingly prioritizing domestic orders, a stark contrast to previous export-heavy business models. This shift, fueled by expedited procurement processes and urgent emergency buying requirements, is reshaping the sector's financial outlook and strategic direction. Gopalan Aerospace, a subsidiary of the Gopalan Enterprises group, exemplifies this trend, projecting a revenue increase to ₹120–130 crore in 2025 from ₹80 crore in 2024. Local contracts now constitute nearly 60% of its order pipeline, a significant jump from the 60–70% previously contributed by exports.
Drivers of the Pivot
C Prabhakar, Director at Gopalan Aerospace, attributes this turnaround to the urgent delivery timelines demanded by domestic clients. "Within two months of orders being placed, the material is required," he noted, highlighting how this urgency favors local suppliers capable of rapid fulfillment. The increased emphasis on indigenous sourcing is also fostering higher-end technology collaborations, with international firms actively seeking Indian partners to access the burgeoning domestic market.
Broader Industry Impact
Larger manufacturers echo this sentiment. Pavan Ranga, Managing Director and CEO of Rangsons (part of NR Group), stated that over 60% of their orders now originate from India. He credits 'Make in India' mandates, the transition of public sector undertakings (PSUs) from planning to execution, and heightened regional security concerns for this domestic momentum. Rangsons is investing ₹300 crore to enhance manufacturing capabilities, add specialized processes, and build advanced testing infrastructure.
Uneven Transition
However, the shift is not uniform. Companies focused on large, long-cycle strategic platforms, such as MALE UAVs, still heavily rely on exports. Suhas Tejaskanda, Founder and CEO of Flying Wedge Defence and Aerospace, reported an order book of ₹300 crore, with ₹297 crore from exports and only ₹3 crore domestically. He pointed to lengthy acquisition processes involving multiple defense council clearances that can span years. Despite this, even export-centric firms like Jeh Aerospace, which derives 99% of revenue from abroad, are observing a marked increase in interest from Indian customers, signaling growing confidence in India's indigenous defence manufacturing prowess.
