The Russia-Ukraine war has brought unexpected shifts to the global defence market. Heavy demand for ammunition in Europe is boosting India’s defence sector, even as India continues to import discounted crude oil from Russia to ease domestic fuel costs. India is thus benefiting economically on both fronts.
According to Bloomberg data, Indian companies have exported weapons and equipment worth $872 million (about Rs 7,000 crore) to European countries since the war began. Such exports stood at only $49.2 million before the conflict, an increase of more than 1,600 per cent.
The shipments consist mainly of artillery shells, mortars and explosives, not fighter jets or missiles. Around 75 per cent went to 13 countries in Eastern and Central Europe. India is now the second-largest arms supplier to the region after South Korea, having ranked 28th four years ago.
State-owned firms such as Munitions India Limited are making gains in global markets. Under the Atmanirbhar Bharat strategy, India’s total defence exports rose 63 per cent last year to $4 billion.
India maintains strong diplomatic and defence ties with Russia and has continued buying Russian crude at lower prices during the war, protecting its energy security. Indian sources said the arms exports are purely a commercial decision and that India is not taking sides.