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How Southeast Asia Became the Largest Market for India’s Defence Exports

How Southeast Asia Became the Largest Market for India’s Defence Exports

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Highlights

  • Myanmar, the Philippines and Vietnam accounted for 70.1% of India's defence exports during 2020–2025.
  • Myanmar remained the largest export destination with a 36% share.
  • The Philippines emerged as the second-largest buyer, accounting for 27% of exports.
  • Ships remained India's largest defence export category, while artillery and missile exports increased their share.
  • India and Indonesia exchanged defence-related MoUs and agreements during Prime Minister Narendra Modi's State Visit to Indonesia.

India’s Defence Export Focus Shifts Towards Southeast Asia

India's defence export landscape has undergone a notable shift in recent years, with Southeast Asia emerging as the primary destination for military equipment. Data for the 2020–2025 period shows that Myanmar, the Philippines and Vietnam together accounted for more than 70% of India's defence exports, reflecting a significant change from previous years.

The trend also coincides with Prime Minister Narendra Modi's visit to Indonesia from July 6 to July 8, 2026, where India and Indonesia discussed expanding cooperation across multiple sectors, including defence, as part of their Comprehensive Strategic Partnership.

Southeast Asia Emerges as India's Key Defence Export Market

India's defence exports have become increasingly concentrated in Southeast Asia over the past few years. During the 2020–2025 period, Myanmar accounted for 36% of India's total defence exports, making it the largest export destination. The Philippines followed with a 27% share, while Vietnam accounted for 7%.

Together, these three countries represented 70.1% of India's defence exports during the period. This marks a significant increase compared with 16.5% during 2014–2019 and 14.7% during 2008–2013, indicating a notable change in the geographical distribution of India's defence exports.

Export Portfolio Shows Changing Product Mix

Alongside the shift in export destinations, the composition of India's defence exports has also changed.

Ships remained the largest export category during 2020–2025, accounting for 45% of total defence exports. However, their share declined from 66% during 2014–2019.

At the same time, artillery exports accounted for 18% of total exports, while missiles contributed 16%. Air-defence systems emerged as another export category with a 7.4% share. Aircraft exports, meanwhile, declined to 3.9%, compared with 71% during 2008–2013.

These figures indicate that India's defence export basket has become more diversified over time.

Southeast Asia Accounts for a Large Share of Key Defence Exports

The available data also highlights Southeast Asia's importance across multiple defence equipment categories.

During 2020–2025, the region accounted for:

  • 85.5% of India's missile exports.
  • 77.9% of artillery exports.
  • 90.2% of ship exports.

Sensor exports were comparatively more diversified, with Southeast Asia accounting for 20% of exports in that category.

India–Indonesia Defence Cooperation

Prime Minister Narendra Modi visited Indonesia from July 6–8, 2026, at the invitation of Indonesian President Prabowo Subianto.

During the visit, the two leaders reviewed the India–Indonesia Comprehensive Strategic Partnership across several areas, including defence and security, maritime cooperation, trade and investment, digital technology, healthcare, space, agriculture and people-to-people exchanges.

Following the official talks, India and Indonesia exchanged multiple MoUs and agreements covering defence, critical minerals and rare earths, science and technology, education, telecommunications, agriculture, maritime security, space, disaster management, healthcare collaboration and other sectors. The leaders also reaffirmed their commitment to strengthening cooperation under the ASEAN–India Comprehensive Strategic Partnership and supporting a free, open and rules-based Indo-Pacific.

Conclusion

Recent data indicates that Southeast Asia has become the principal destination for India's defence exports, with Myanmar, the Philippines and Vietnam accounting for a substantial share of shipments during 2020–2025. At the same time, India's export portfolio has expanded beyond ships to include a wider range of defence equipment such as artillery, missiles and air-defence systems. The latest discussions and agreements between India and Indonesia further reflect the continued engagement between the two countries across defence and other strategic sectors.

FAQs

Q: Which countries are the largest buyers of India's defence exports?
A: During 2020–2025, Myanmar, the Philippines and Vietnam accounted for the largest share of India's defence exports.

Q: What percentage of India's defence exports went to these three countries?
A: Together, Myanmar, the Philippines and Vietnam accounted for 70.1% of India's defence exports during 2020–2025.

Q: Which defence equipment category accounted for the largest share of India's exports?
A: Ships remained the largest export category, contributing 45% of India's defence exports during 2020–2025.

Q: What defence-related developments took place during PM Modi's Indonesia visit?
A: India and Indonesia exchanged MoUs and agreements covering defence and several other sectors as part of discussions under their Comprehensive Strategic Partnership.

Q: How has India's defence export mix changed over time?
A: While ships continue to account for the largest share, exports of artillery, missiles and air-defence systems have increased, while the share of aircraft exports has declined.

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