Indian PSUs hold minimal global arms share despite top 100 presence

The global arms market snapshot shows that Indian PSUs hold only a minimal share despite being listed among the world’s top 100 manufacturers, placing the main keyword global arms market snapshot at the front of an important industry discussion. Their presence reflects scale, but their sales footprint abroad remains limited.

Indian PSUs secure rankings but struggle to expand global revenue
Indian defence public sector undertakings continue to feature within the global top 100 arms producers thanks to steady domestic orders and long standing roles in national defence manufacturing. The subhead includes the secondary keyword defence revenue trends. Companies such as HAL, BEL and the ordnance production network maintain stable output for India’s armed forces, which alone is sufficient to place them in the global rankings.

However, when measured by international market share, these firms account for only a fraction of global sales. Their limited export penetration reflects structural challenges, including reliance on domestic procurement cycles, slower technology upgrades compared to global competitors and historically low investment in external marketing and after sales capability. Most revenue for Indian PSUs still comes from internal defence modernisation, not international buyers.

This gap between ranking and global share underscores the difference between scale driven by domestic demand and scale driven by cross border competitiveness.

Export limitations stem from product positioning and legacy practices
Indian PSUs produce a wide range of equipment, but much of it is optimised for India’s own military requirements. The subhead integrates the secondary keyword export competitiveness. Platforms such as fighter aircraft, radars, communication systems and missile support equipment are built to meet specific operational doctrines of the Indian forces. While suitable for export, these systems often require significant adaptation to meet varied international standards.

Moreover, export promotion has never been a core strength of India’s defence PSUs. For decades, regulatory hurdles slowed foreign contracting, and limited overseas exposure prevented Indian manufacturers from building long term client relationships. Competing in the global market requires aggressive marketing, dedicated international offices, continuous engagement with procurement agencies and multi year support agreements, areas where Indian PSUs are only now increasing their efforts.

Even where India’s equipment has strong performance potential, limited visibility restricts wider adoption among foreign defence buyers.

Rising domestic capability provides a foundation for future expansion
India has steadily expanded its defence manufacturing ecosystem, improving product quality and technological capability. The subhead includes the secondary keyword indigenisation progress. The past decade has seen significant advancements in avionics, sensors, electronic warfare support, communications equipment and land systems. Collaborative work with research agencies and private sector firms has accelerated modernisation.

This improved capacity is beginning to reflect in export numbers, though growth remains gradual. India has supplied coastal radar systems, transport aircraft spares, missile components and naval platforms to friendly nations. Small but steady deals indicate that Indian PSUs are building a reputation for reliable, cost effective solutions.

Domestic initiatives such as Make in India, positive indigenisation lists and procurement reforms have expanded the production capacity of PSUs, giving them a stronger foundation to pursue global opportunities. As dependencies on imported components reduce, export confidence is expected to rise.

Why global competitors maintain dominance over Indian manufacturers
The world’s largest defence firms maintain extensive supply chains, established support infrastructure and deep technology portfolios. The subhead integrates the secondary keyword global competition dynamics. These companies invest heavily in R&D, often exceeding entire annual budgets of Indian PSUs. They also offer integrated systems that bundle hardware, software, maintenance and training, making their offerings more attractive to defence buyers.

Additionally, many global manufacturers benefit from long standing defence diplomacy support from their home governments. Strategic ties, joint exercises and security agreements often influence procurement choices. Indian PSUs, by contrast, are newer entrants in this competitive arena and must build such ties progressively.

Price competitiveness is one area where Indian firms could gain ground, but defence buyers often prioritise proven performance history and availability of long term support services, areas where global leaders have stronger records.

The path forward: reforms, partnerships and technology upgrades
For Indian PSUs to expand their global arms market share meaningfully, structural changes are required. The subhead includes the secondary keyword strategic reforms. Faster decision making, greater autonomy and more flexible commercial models will help PSUs compete internationally. Strategic partnerships with global defence majors can accelerate technology absorption and create co development pathways that appeal to foreign buyers.

Establishing overseas marketing offices, participating regularly in global defence exhibitions and engaging in government backed defence diplomacy will be critical. Strengthening maintenance, repair and overhaul capabilities abroad will also increase customer confidence. Technology upgrades in next generation systems such as drones, electronic warfare platforms and advanced sensors will further improve appeal.

If these steps are sustained, India’s PSUs could gradually transition from domestically dominant manufacturers to globally relevant suppliers over the next decade.

Takeaways
Indian PSUs appear in the global top 100 but have low international sales.
Export limitations stem from legacy practices and product customisation for India.
Domestic capability has improved, creating a stronger base for future growth.
Reforms, partnerships and technology upgrades are essential for global expansion.

FAQs

Why do Indian PSUs have a small global arms market share?
They rely heavily on domestic orders, have limited export infrastructure and face strong competition from established global players.

Do Indian PSUs produce export worthy equipment?
Yes, many systems are export capable, but they require better visibility, marketing and long term support structures.

How can India increase its defence exports?
By modernising production, strengthening R&D, forming international partnerships and expanding overseas marketing networks.

Will Indian PSUs grow their global presence soon?
Growth is possible but will be gradual, depending on reforms, technology upgrades and consistent global engagement.