India has spent decades among the world’s biggest importers of military hardware. Today, it is steadily building another identity: a supplier of advanced defence systems.
Indonesia’s decision to procure the BrahMos cruise missile and the Astra air-to-air missile marks more than another export order.
It signals that India’s indigenous defence industry is beginning to compete in one of the world’s most sophisticated and strategically important manufacturing sectors, where every contract strengthens industrial capability, diplomatic influence and long-term economic ties.
India-Indonesia Deal
During Prime Minister Narendra Modi’s visit to Jakarta, India and Indonesia elevated their Comprehensive Strategic Partnership through a series of agreements spanning defence, maritime security, artificial intelligence, critical minerals, food security and digital cooperation.
At the centre of the visit was Indonesia’s decision to procure the BrahMos supersonic cruise missile system and the Astra beyond-visual-range air-to-air missile. Reuters estimates the overall defence package at about US$630 million, although neither government has officially disclosed the value.
The agreement makes Indonesia the third overseas customer for BrahMos after the Philippines and Vietnam. Astra is expected to become India’s first export of an indigenous beyond-visual-range air-to-air missile, opening an entirely new category of defence exports.
The deal arrives as India’s defence exports continue their strongest growth phase. According to the Ministry of Defence, exports have risen from ₹1,941 crore in FY2014-15 to ₹23,622 crore in FY2024-25, an increase of more than twelve times in a decade. The government now aims to double annual exports to ₹50,000 crore by FY2028-29.
For a country long dependent on imported weapon systems, exporting advanced missiles represents a structural shift in industrial capability rather than simply another trade transaction.
Why Indonesia Chose India
Indonesia’s decision reflects both strategic and commercial considerations.
Located along the Strait of Malacca, one of the world’s busiest maritime corridors, Indonesia has been modernising its armed forces while seeking to diversify defence partnerships.
BrahMos offers a proven supersonic strike capability, while Astra is compatible with the Russian-origin Sukhoi fighter aircraft already operated by the Indonesian Air Force. That compatibility reduces integration challenges and creates a practical pathway for adoption.
The agreements also extend well beyond missiles. Both countries reaffirmed cooperation on the development of Sabang Port near the entrance to the Strait of Malacca, a strategically important location for regional maritime connectivity.
Additional agreements covering artificial intelligence, critical minerals, agriculture, healthcare and maritime security demonstrate that defence is becoming part of a much broader economic and strategic partnership.
This wider framework makes the missile sale more durable because defence cooperation is increasingly supported by trade, technology and infrastructure collaboration.
Manufacturing Beyond Missiles
The economic significance of defence exports lies in what happens after a contract is signed.
Unlike many manufactured goods, missile systems generate decades of follow-on business through maintenance, training, software upgrades, spare parts and technical support. Defence exports therefore create recurring revenue rather than one-time sales while strengthening India’s advanced manufacturing ecosystem.
The BrahMos programme itself supports a broad network of public and private manufacturers led by BrahMos Aerospace, DRDO and Bharat Dynamics Limited, alongside numerous domestic suppliers producing electronics, propulsion systems, precision engineering components and specialised materials.
The Astra agreement could prove especially valuable. Reuters and industry reports indicate Indonesia will become its first overseas customer, creating a global reference point for future exports. Because several countries across Asia and Africa continue to operate Russian-origin Sukhoi aircraft, successful integration in Indonesia could improve export prospects in other markets with similar fleets.
Competing In Global Markets
India’s ambitions should also be viewed against the backdrop of an increasingly competitive global defence industry.
The United States and France remain among the world’s largest arms exporters, while countries such as South Korea and Turkey have rapidly expanded their presence by combining indigenous technology with export-focused industrial strategies. India remains a relatively small player by comparison, but its export trajectory has accelerated sharply over the past decade.
Recent interest in BrahMos has also grown as countries seek affordable, high-performance missile systems amid rising geopolitical tensions in the Indo-Pacific. Analysts say the system’s operational reputation and India’s willingness to build long-term defence partnerships have improved its appeal among Southeast Asian nations.
However, sustaining export momentum will depend on consistent production capacity, timely deliveries and reliable lifecycle support. International buyers increasingly evaluate suppliers not only on technology but also on execution.
Beyond A Single Deal
Indonesia’s agreements represent more than another diplomatic success.
For India, they demonstrate how defence manufacturing is becoming an important pillar of industrial policy alongside information technology, pharmaceuticals and automotive production. Every successful export strengthens domestic research, expands manufacturing capabilities and improves India’s credibility in future international competitions.
Equally important, defence exports create strategic relationships that often last decades through maintenance contracts, training programmes and technology cooperation. That gives India influence extending well beyond the initial commercial transaction.
If the Indonesia programme is executed successfully, it could become a powerful demonstration that Indian-designed military technology can compete globally on capability, reliability and value.
For a country seeking to transform itself from one of the world’s largest arms importers into a trusted defence exporter, the Jakarta agreements may ultimately be remembered not as an isolated missile sale, but as the moment India’s defence manufacturing ambitions entered a new phase.
The Logical Indian’s Perspective
India’s growing defence exports reflect not only technological progress but also the country’s evolving role in global manufacturing and diplomacy. As indigenous systems gain international acceptance, the focus should remain on responsible exports, transparency and strengthening domestic innovation.
Defence partnerships must ultimately contribute to regional stability, economic opportunity and self-reliance rather than simply higher sales. Sustainable growth in this sector will depend on balancing strategic interests with ethical governance, reliable delivery and continued investment in research, skills and advanced manufacturing.
