India is trying to displace Russia in the arms market
India has ambitions to oust Russia from the international arms market, so the country is expanding financing through a state-owned bank, increasing its diplomatic presence and negotiating direct deals with other countries.
What is known
India is expanding the capacity of the state-owned Export-Import Bank (EXIM) to offer long-term loans to potential arms buyers. It also plans to increase the number of defence attachés in its embassies. As part of the new programme, the Indian government will conduct direct negotiations on arms sales.
The country is targeting the markets of Africa, South America and Southeast Asia - regions that have traditionally bought arms from Russia. One of the turning points was Russia's full-scale invasion of Ukraine, after which Russia focused its arms production on its own needs.
According to the government, in the 2023-2024 fiscal year, India produced $14.8 billion worth of weapons, up 62% from 2020. The country aims to double exports to $6 billion by 2029.
India's Agni-V (Agni-5) ballistic missile: Pallava Bagla/Corbis
Currently, the bulk of exports are ammunition, small arms and defence equipment components, but India plans to go beyond this range.
The Indian media reports that domestic companies offer their products at lower prices: for example, a 155mm artillery round costs $300-400, while the European equivalent costs more than $3,000. Howitzers are sold for around $3 million per unit, which is half the price of similar weapons from Europe.
The loan portfolio of EXIM in 2023-2024 was over $18 billion, and the authorities plan to use it to promote Indian arms exports. It is also noted that India has managed to break Russia's monopoly on arms supplies to Armenia. In 2022-2024, India accounted for 43% of Armenia's arms imports, up from zero in 2016-2018.
Source: Reuters