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India is offering cheap and long -term loans to weapons buying countries. Target are the countries that have been buying weapons from Russia till now. These countries are now looking for new options due to Russia’s Ukraine Jung. India is trying to take advantage of this. This claim has also been made in the report of Reuters.
India is the highest weapon buying country after Ukraine. However, in the last few years, the government is also emphasizing on arms exports. For this, India is providing loans to buy weapons through Exim Bank.
Reuters have quoted two government officials as saying that the government is working on low interest rates to weapons with the help of EXIM Bank and on a plan to give loans for a long time. This will benefit those countries who are unable to raise expensive loans due to political instability or low credit rating.
India has sent its diplomat to 20 countries including Brazil-Argentina for this.
Russia-Ukraine Jung became turning point
Ukraine was attacked by Russia in February 2022. During the last 3 years, both America and Russia have their weapons in this war. In such a situation, the countries of Africa, South America and Asia, depending on these two countries, have a shortage of options for the supply of arms.
According to the Reuters report, India recognized the opportunity and increased contact with those countries. The special thing is that India has been using both western and Russian weapons. India has both types of weapon technology experience. In such a situation, India can understand the defense needs of these countries.
Defense analysts believe that this strategy will not only make India a trusted weapon supplier globally, but will also strengthen it strategically. In the coming years, India can deepen its relations with countries that had only military assistance from Russia.
An Indian official said the situation changed after the attack on Russia’s Ukraine in 2022. Western countries sent their weapons to Ukraine and Russia made its weapons only for themselves. This caused problems to those countries that depended on Russia and America.
In such a situation, the countries that continued to buy weapons from both, they started contacting India. Some Indian artillery shells were also seen in Ukraine. India is now holding meetings between foreign diplomats and its weapon companies and showing advanced weapons such as helicopters in military exercises.
Russia’s weapon reduced dominance in market
According to a 2025 report by Stockholm International Peace Research Institute (SIPRI), Russia’s arms exports have declined by 64% between 2020–24 as compared to 2015-19. Russia’s share in the global weapon market has come down from 20% to 7.8%.
The decline had already begun before the attack on Ukraine in 2022. The main reason for this was to get less orders from China and India. On the other hand, the US has increased its stake in global arms exports by 43%. Even countries like China and France are overtaking Russia.
Russia’s largest weapon buyer, India bought 72% of the weapons in 2010-14, which declined to 36% in 2020-24. However, India still buys the most weapons from Russia.
India’s defense production increased by 62% in 4 years
In 2023-24, India made weapons of about ₹ 1.27 lakh crore, which is 62% more than 2020. India has set a target to bring defense exports to $ 6 billion (about ₹ 50 thousand crore) by 2029.
Currently, 155 mm cannon shells made in India are made for 300 to 400 dollars, while in Europe the same ball is sold for 3 thousand dollars. According to the report, the Hovitzer cannon made in India has been sold for Rs 25 crore. It costs about half as compared to the Hovitzer cannon made in Europe.
Small arms have been produced in India for a long time, but recently private companies have started making large and advanced weapons. Private companies such as Adani Defense and SMPP are also now making big weapons.
Why is India distributing loans through EXIM bank?
India has decided to distribute loans through EXIM Bank. Actually, most banks in India are reluctant to give loans for the sale of weapons. Especially Indian banks do not want to deal with countries where political risk is high. Hence the exim is designed.
A diplomat from India has said that due to the innovation of banks, India has lagged behind its rivals such as France, Turkey and China for a long time, as these countries also give huge loans to buy weapons. Therefore, India has also come in the market to sell arms by giving loans.
India opened a branch of Exim in Brazil in January this year. Under this, India is dealing with selling missiles to Brazil. According to two Brazilian officials, India is in talks to sell the Akash missile to Brazil. Two Indian sources have told the Reuters that the company making Akash missile system has opened an office in Sao Paolo this year.
African, South American and Asian countries on the target
India plans to make countries in Africa, South America and South-East Asia its defense export centers. According to officials, India will deploy 20 new Defense Attashe (military diplomat) abroad by March 2026.
These will be appointed in countries such as Algeria, Morocco, Guyana, Tanzania, Argentina, Ethiopia and Cambodia. India considers these countries the best for increasing its defense exports.
On the other hand, India will reduce the number of military diplomats deployed in western countries. They will be deployed in other countries from here. These diplomats are being helped to promote Indian weapons and study the defense needs of host countries.
India appointed military diplomat in Armenia last year. India has also got success here. India has challenged Russia’s dominance in Armenia.
According to the Stockholm International Peace Research Institute (SIPRI), India stake in the total imports of Armenia from 2022 to 2024, while India stakes 0% in 2018.
