India Aims to Export Missiles and Warships on Easy Credit

India is ramping up arms exports—offering cheap loans, warships, and missiles to allies seeking alternatives to Russia and the West.

India Expands Defense Exports with Missiles, Warships, and Easy Loans

As geopolitical alliances shift and defense budgets tighten globally, India is taking a bold step to position itself as a credible alternative in the global arms market. Under Prime Minister Narendra Modi’s leadership, the nation is extending its “Make in India” initiative beyond smartphones and pharmaceuticals—into the lucrative world of missiles, helicopters, and naval warships.

India’s plan goes far beyond manufacturing. With the backing of the state-run Export-Import Bank (EXIM), New Delhi is now offering long-term, low-interest loans to countries that often struggle to secure financing through traditional channels due to credit or political risk. This strategy aims to attract buyers from Africa, South America, and Southeast Asia—regions historically dependent on Russian or Western suppliers.

Targeting Markets Left in Limbo After the Ukraine War

Russia’s ongoing war in Ukraine has disrupted global arms supply chains. Western countries diverted surplus weapons to Kyiv, while Moscow focused production on its own military needs. That left traditional clients in a lurch—prompting many to explore new suppliers.

India, with its unique history of sourcing and assimilating military technology from both the West and Russia, suddenly found itself in demand. According to Indian officials familiar with the matter, the uptick in foreign inquiries began shortly after the Ukraine invasion.

“India’s strength lies in offering reliable, cost-effective alternatives—at a time when traditional suppliers are stretched thin,” one defense ministry insider explained.

Affordable Firepower: India’s Competitive Advantage

Cost has become a major selling point. While European-made 155 mm artillery shells can cost over $3,000 apiece, Indian manufacturers offer similar rounds for just $300–$400, according to multiple industry sources. Similarly, Indian howitzers have been sold for around $3 million—half the cost of some Western models.

This price advantage is not due to compromise in quality but rather India’s sustained defense production over decades. While Western nations cut back after the Cold War, India—sandwiched between two nuclear-armed rivals, China and Pakistan—kept its factories running.

Retired Navy Commander Gautam Nanda, now with KPMG’s defense practice, noted, “India never scaled down its capacity. That strategic foresight is now paying off.”

Private defense players like Adani Defence and SMPP are also scaling up, producing artillery shells and high-caliber munitions that are already drawing interest from foreign governments.

EXIM Bank: Financing the Firepower

To further grease the wheels, EXIM Bank is being positioned as a financial catalyst. With a $18.3 billion loan portfolio last fiscal year, it’s expected to underwrite many arms deals. Unlike conventional banks wary of politically risky markets, EXIM has the government’s backing—giving India a competitive edge against countries like China and France, which bundle credit with their exports.

India is actively negotiating arms deals with countries like Brazil, where EXIM recently opened an office. Talks are underway to sell Akash surface-to-air missiles and even co-develop battleships. Bharat Electronics, which manufactures components for Akash, has opened a marketing office in São Paulo to support these efforts.

Growing Diplomatic Muscle with Defense Attachés

Diplomatic outreach is another key part of India’s export push. New Delhi plans to dispatch at least 20 new defense attachés by March 2026, focusing on under-served markets like Guyana, Ethiopia, Algeria, and Argentina. These attachés will not only promote Indian arms but also gather intelligence on local defense needs—helping tailor sales pitches with precision.

Interestingly, India is reducing its military diplomatic presence in Western countries to reassign resources toward these emerging markets. This marks a major shift in its strategic posture—favoring countries that, like India, often operate non-NATO systems.

Armenia offers a glimpse of what success could look like. Once dependent on Moscow, Yerevan has now turned to India for 43% of its defense imports between 2022 and 2024, according to the Stockholm International Peace Research Institute (SIPRI).

A Bid for Strategic Autonomy—and Influence

At its core, this isn’t just about boosting exports. It’s about asserting India’s autonomy and influence on the global stage. By offering affordable, locally-made weapons and the financing to buy them, India is creating a new kind of soft power—one rooted in military hardware rather than humanitarian aid or trade pacts.

This approach allows New Delhi to reshape long-standing geopolitical relationships without the baggage that often accompanies arms deals with the US, Russia, or China. And while India still has hurdles to overcome—including proving the battlefield efficacy of its newer systems—its momentum is undeniable.

Conclusion: From Factory Floor to Arms Broker

India’s defense ambitions are no longer confined to protecting its own borders. With a blend of cost-effective manufacturing, strategic financing, and diplomatic agility, it is now vying for a seat at the global arms table.

If New Delhi can continue to prove the reliability of its weaponry and build lasting ties with emerging buyers, it could redefine not just its economic trajectory—but its geopolitical clout in a world hungry for alternatives.

Disclaimer:
This article is based on publicly available sources and interviews, reimagined for clarity and journalistic storytelling. The information does not constitute investment or policy advice.

source : Firstpost