Despite its capability, India struggles to tap export demand in Africa & Southeast Asia

New Delhi: India’s growing domestic capabilities in defence production have not yet translated into meaningful market penetration in key regions such as Southeast Asia and Africa, despite geopolitical goodwill and rising demand for cost-effective, mid-range defence systems.

According to a recent study, India’s Defence Equipment Industry: Exploring New Frontiers by the Exim Bank, India continues to underperform in markets that are “natural strategic partners,” both diplomatically and economically.

The report identifies 36 priority countries where India enjoys strong trade complementarity in defence-related segments.

Yet, Indian defence exports remain marginal, even in countries like Vietnam, Egypt, Nigeria, and Malaysia, nations that have significantly increased their defence procurement budgets over the last decade.

“India’s presence in most of these markets remains limited,” the report states, despite opportunities in systems like multi-barrel rocket launchers, short-range missiles, light helicopters, and surveillance platforms, areas where Indian firms have established production capacity.

Vietnam, for instance, features prominently in India’s Act East and defence cooperation strategies and is among the few countries with a line of credit from India for defence purchases.

Still, India’s share in Vietnam’s defence imports remains negligible. In contrast, other countries with comparable product ranges have made deeper inroads, the report notes.

It also highlights the gap between India’s diplomatic engagements and its defence commercial outcomes. In Africa, countries such as Nigeria and Kenya exhibit demand patterns that align with India’s offerings.

However, the lack of targeted export financing, product awareness, and sustained engagement stalls progress.

The study mentions, “Efforts must be made to enhance India’s visibility and credibility as a reliable supplier of defence equipment, especially in countries with emerging procurement budgets.”

Export intensity remains low despite India’s advantages in affordability, battlefield-tested systems, and growing private sector participation.

The report calls for a coordinated export push, leveraging India’s missions abroad, regional security partnerships, and Lines of Credit to facilitate structured sales.