Whalesbook
India Boosts Defense Export Ambitions with Vietnam Talks
Vietnamese President To Lam's visit to New Delhi is important, with talks focused on a potential deal for BrahMos supersonic cruise missiles. This high-value deal, reportedly around $600 million including training and support, positions India as a strong player in the global defense export market. It aligns with its 'Make in India' and 'Aatmanirbhar Bharat' (self-reliant India) initiatives. The sale is more than commercial; it's a strategic step reflecting India's growing role in shaping regional security amid rising geopolitical tensions in the Indo-Pacific.
India's BrahMos Momentum Drives Export Growth
The potential BrahMos sale to Vietnam marks a major step for India's defense export strategy. In FY 2025-26, India's defense exports reached an all-time high of over $4 billion, a 62.7% increase from the previous fiscal year, with exports going to more than 80 countries. The BrahMos missile, a joint venture between India and Russia, has become a key product in this export drive. Following a $375 million deal with the Philippines and an agreement with Indonesia, the proposed transaction with Vietnam further shows India's capabilities in advanced defense manufacturing. BrahMos Aerospace reported record revenues of $548.24 million in FY 2025-26, a 48.6% increase, driven by export orders totaling $420 million during the same period. This growth highlights increasing global demand for supersonic and hypersonic missile systems, a segment where India is gaining ground.
Indo-Pacific Strategy Gains Traction
India sees Vietnam as an important partner for maintaining stability and a balance of power within the Indo-Pacific, a region with China's increasing influence. The BrahMos deal serves as a direct countermeasure to this assertiveness, strengthening Vietnam's defense, particularly in maritime security and coastal defense. This fits Vietnam's overall strategy to diversify its defense partnerships beyond Russia and modernize its military hardware in response to maritime disputes in the South China Sea. The increasing use of Indian-made defense equipment across Southeast Asia, including the BrahMos, is changing the regional defense balance.
Risks and Challenges Remain
Despite a positive outlook, risks remain. The BrahMos missile, while a symbol of Indian innovation, uses technology with Russian origins. This could expose future deals to international issues, especially given global sanctions on Russia. Furthermore, while India's defense exports have surged, they still represent a small part of the global arms market led by major powers. Vietnam, traditionally buying arms from Russia, is looking for alternatives due to costs and a desire for newer technology. However, the investment for advanced systems like BrahMos remains substantial. Competitors from other nations also offer advanced missile systems, creating an environment where pricing, technological sophistication, and long-term support will be important factors. Whether these sales can truly change the strategic balance against major powers like China is a topic of debate.
India's Defense Export Ambitions
The Indian government has set bold targets, aiming for defense production worth $34.7 billion and exports of $5.3 billion by 2029-30. Analyst firms like Goldman Sachs expect strong annual profit growth for Indian private defense firms, due to increased exports and making more at home. The continued rise in defense budget allocations and government support for domestic manufacturing and exports suggest India is focused on becoming a key global defense supplier. This strategic shift, shown by deals like the potential BrahMos sale to Vietnam, positions India as a more influential player in the global security framework.