India’s Ministry of Defense is the world’s second-largest weapons importer (accounting for 8.2% of global arms imports in 2021–25), is the fifth-largest military spender globally, and has committed $87 billion to defense in fiscal year 2027. For American aerospace and defense companies, the window of opportunity continues to be significant.

Why India, Why Now?

India has a structural demand for defense imports. With two neighbors with hostile histories (China and Pakistan) India has a need for the best weaponry across its air force, army, navy, and coast guard. Separately, India’s homeland security department runs a million-person paramilitary with similar needs; this is called the Home Ministry.

The government has doubled down on this commitment. According to the India Ministry of Defense, the budget of $87 billion is a 15% increase since the prior year. This allocation positions India to become the world’s fourth-largest military spender.

While much of the modernization budget is earmarked for domestic procurement, India turns to the United States, Israel, France, and Russia for a majority of its most advanced needs.  That is where foreign companies can win contracts. U.S. companies such as Boeing, Lockheed Martin, General Atomics, Trijicon and RTX have won significant business in India. 

Annual Defense Budget (US$ billions): FY22: $54B | FY23: $60B | FY24: $70B | FY25: $74B | FY26: $78B | FY27: $87B Source: India MoD annual press releases, 2021–2026.

India’s 28 states also spend independently. State-level procurement covers police equipment, coastal protection, and border infrastructure, creating a third, often-overlooked layer of market opportunity beyond the central Ministry of Defense. 

Supplier Landscape

Russia is out. Western suppliers are in.

India is actively diversifying away from Russian equipment. This is a strategic shift that directly opens doors for foreign companies. The data show an unambiguous trend.

This shift reflects India’s deepening strategic alignment with the West. The INDUS-X initiative, launched by India and the United States in 2023, creates a formal framework for defense co-development, co-production, and technology transfer. U.S. companies now have both the commercial incentive and the governmental support structure to compete.

Some Recent U.S. – India Deals

American companies are already winning at scale.

U.S. companies have secured some of India’s largest-ever defense contracts, with significant local production and offset commitments built in.

General Atomics — ~$4B (Signed Oct 2024) 

31 MQ-9B Sky/Sea Guardian high-altitude armed drones procured in a tri-service deal. Maintenance, Repair & Overhaul facility to be established in India. Deliveries expected to start in 2029.

General Electric — Multi-program (Ongoing) 

F414 INS6 engines for the Tejas Mk2 Light Combat Aircraft — 80% technology transfer to HAL for local India production GE LM2500 gas turbines (assembled in India) power the aircraft carrier INS Vikrant.

How Amritt Helps

22 years of India defense market expertise

India’s defense procurement process is complex, relationship-intensive, and distinctly Indian in character. 

Many aspects of defense require deep expertise, including understanding:

• Defense Acquisition Procedure
• Offset Frameworks
• Government-owned Defense Public Sector Undertakings (DPSUs) vs. India’s growing private-sector defense industry 
• Foreign Military Sales (FMS) vs. Direct Commercial Sales (DCS)

Amritt’s team has navigated this landscape for over two decades. We know India’s defense ecosystem inside and out, from the Indian Administrative Service (IAS) to its uniformed acquisition staff. Amritt helps American executives to be ready to do business in India with the right opportunities. 

Services:

• Executive Training and Guidance
• Analysis of the Indian Procurement Process
• Defense Opportunity Identification, Development and Capture
• Offsets in India
• Supply Chain Engagements
• In-Country Staffing in India
• Amritt Aerospace & Defense Team

Amritt does not accept contingency payments, success fees, or sales commissions in the defense sector. We are not agents and we do not take title to goods. Our compensation is fee-based, keeping our interests fully aligned with yours.

Ready to enter the Indian defense market? Speak with an Amritt expert about how you can win in India.

1. Stockholm International Peace Research Institute (SIPRI), Trends in International Arms Transfers, 2025 — March 2026. India’s 8.2% share of global arms imports, #2 rank, and supplier percentages (Russia 40%, France 29%, Israel 15%). https://www.sipri.org/publications/2026/sipri-fact-sheets/trends-international-arms-transfers-2025
2. Stockholm International Peace Research Institute (SIPRI), Trends in World Military Expenditure, 2024 — April 2025. India #5 military spender globally; 42% spending growth since 2015. https://www.sipri.org/publications/2025/sipri-fact-sheets/trends-world-military-expenditure-2024
3. India Ministry of Defence / Press Information Bureau, Union Budget FY 2026–27 — February 1, 2026. ₹7.85 lakh crore ($87B) defense allocation; 15% increase over prior year. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2221612&reg=3&lang=2
4. India Ministry of Defence / Press Information Bureau, Union Budget FY 2025–26 — February 2025. 75% of modernization budget earmarked for domestic procurement. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098485&reg=3&lang=2
5. International Institute for Strategic Studies (IISS), Military Balance 2026. India projected to become world’s fourth-largest military spender. https://www.iiss.org/publications/the-military-balance
6. Business Standard / PTI, General Atomics MQ-9B deal — October 15, 2024. ~$4B contract for 31 drones signed. https://www.business-standard.com/external-affairs-defence-security/news/india-signs-4-bn-deal-for-31-predator-drones-from-us-based-general-atomics-124101501107_1.html
7. U.S.-India iCET joint statements, 2023–2024. INDUS-X framework launch and scope. https://www.whitehouse.gov/briefing-room/statements-releases/2023/01/31/fact-sheet-u-s-india-initiative-on-critical-and-emerging-technology-icet/
8. WION News, Tejas Mk2 and GE F414 engine deal — August 2025. 80% Transfer of Technology to HAL for local F414 engine production. https://www.wionews.com/photos/tejas-mk2-and-ge-f414-engine-deal-here-s-what-it-means-for-india-s-fighter-jet-squad-1754120443080
9. GE Aerospace, GE’s LM2500 Engines to Power India’s First Indigenous Aircraft Carrier — 2022. Four GE LM2500 gas turbines assembled by HAL in Bangalore power INS Vikrant. https://www.geaerospace.com/news/press-releases/marine-industrial-engines/ges-lm2500-engines-power-indias-first-indigenous-aircraft

The Federal/Ministry of Home Affairs statement in Parliament — February 6, 2024. Total strength of all Central Armed Police Forces confirmed at 10 lakh (1 million) personnel by Minister of State for Home Affairs Nityanand Rai. https://thefederal.com/category/news/central-armed-police-forces-have-41606-women-minister-109059