India is actively strengthening its position in the global arms market by offering long-term, low-interest loans to foreign buyers, a move designed to boost its defense exports. The government, through the Export-Import Bank of India (EXIM), is providing financing assistance particularly to countries with weaker credit profiles that may find it difficult to secure traditional loans. This strategy aims to make Indian defense products more accessible to nations across Africa, South America, and Southeast Asia, including Algeria, Morocco, Guyana, Tanzania, Argentina, Ethiopia, and Cambodia. With Russia’s defense exports declining due to the ongoing conflict in Ukraine, India is seizing the opportunity to offer a competitive alternative, especially to countries that have historically relied on Russian military equipment.

Indian defense products are competitively priced, often significantly cheaper than their Western counterparts. For example, Indian-manufactured 155 mm artillery shells cost between $300 to $400 each, compared to over $3,000 for European versions. This price advantage, combined with the attractive loan terms, makes Indian weaponry highly appealing to emerging economies with growing security needs. India is also pursuing strategic partnerships, as seen in its discussions with Brazil for the sale of Akash missiles and naval vessels, deals that are expected to be backed by EXIM Bank loans. To further support its defense export push, the Indian government is expanding its diplomatic efforts by deploying additional defense attachés to embassies in target regions, enhancing on-the-ground negotiations and marketing of Indian military products.

Overall, this comprehensive initiative is a significant part of India’s broader ambition to transform itself from one of the world’s largest arms importers into a major defense exporter, with a goal to double its defense exports to $6 billion by 2029. This policy not only strengthens India’s economic prospects but also enhances its strategic influence in regions where competition for defense partnerships is intensifying.