India, Indonesia sign BrahMos missile, critical minerals deals during PM Modi’s visit
India and Indonesia signed a set of defence agreements during bilateral talks in Jakarta on July 7-8, 2026, including contracts for the BrahMos supersonic cruise missile and the Astra Mk-1 beyond-visual-range air-to-air missile (BVRAAM), together valued at over $600 million.
Indonesia's Ministry of Defence signed a contract with BrahMos Aerospace for supersonic cruise missiles, building on an earlier contract for one missile battery concluded earlier in 2026.
Bharat Dynamics Limited entered a cooperation arrangement with an Indonesian defence company for the Astra Mk-1 missile, intended for integration with Indonesia's fleet of 16 Su-30 fighter aircraft.
The visit also produced agreements on critical minerals, election management, health, education, digital infrastructure, food security, and steel manufacturing, alongside a commitment to increase coast guard cooperation.
BrahMos Missile and the Missile Technology Control Regime (MTCR)
BrahMos is a supersonic cruise missile jointly developed by India's DRDO and Russia's NPO Mashinostroyenia (BrahMos Aerospace, a joint venture), capable of being launched from land, sea, submarine, and air platforms at speeds of about Mach 2.8-3. Its export potential was constrained for years because, in its original 290-km-range configuration, it falls under Category I of the Missile Technology Control Regime (MTCR) — a voluntary 35-member export-control arrangement covering missiles and unmanned delivery systems capable of carrying a 500 kg payload beyond 300 km. India's accession to the MTCR in June 2016 was a key enabler for BrahMos exports, since it allowed India to be treated as a rules-compliant supplier rather than a proliferation risk.
Key Details
- MTCR was established in 1987 by the G-7 countries; India became its 35th member in June 2016.
- The Philippines was the first BrahMos export customer, with a $375 million deal signed in January 2022 for three missile batteries — the first-ever export of the BrahMos system.
- BrahMos export variants are capped at roughly 290 km range to remain consistent with India's international missile-control commitments.
- Category I MTCR items (missiles/UAVs exceeding the 300 km/500 kg threshold) attract the "strong presumption of denial" for exports, unlike Category II items which face case-by-case review.
The Indonesia contract extends the BrahMos export list beyond the Philippines, reinforcing India's transition from an arms importer to an exporter of MTCR-Category I-capable systems under the same export-control framework that governs missile transfers globally.
Astra Mk-1 BVRAAM and Indigenous Air-to-Air Missile Development
The Astra is a DRDO-developed, all-weather beyond-visual-range air-to-air missile (BVRAAM), guided initially through inertial navigation with a fibre-optic gyroscope and terminal guidance from an active radar seeker. It represents India's push to indigenise a missile category historically dominated by Russian, French, and American systems.
Key Details
- Astra Mk-1 has an engagement range of roughly 80-110 km and can reach speeds of Mach 4+.
- It is already integrated with the Indian Air Force's Su-30MKI fleet, with integration underway on the indigenous Tejas Mk-1A and planned for future platforms including the AMCA and Rafale.
- The missile was cleared for full-rate production in 2024.
- Bharat Dynamics Limited (BDL), a defence public sector undertaking under the Ministry of Defence, manufactures the Astra and is executing the Indonesian cooperation arrangement.
The Indonesia deal is Astra's first confirmed export arrangement, targeting integration with Indonesia's existing Su-30 fleet — the same aircraft type on which Astra is already combat-integrated with the IAF, easing technical compatibility.
India's Defence Export Policy Architecture
India's defence export push rests on the Aatmanirbhar Bharat (self-reliance) framework, which combines import-substitution measures with active export promotion. The Ministry of Defence has issued successive Positive Indigenisation Lists that progressively bar imports of listed items/platforms after specified timelines, pushing production — and eventually exports — toward domestic industry, including DPSUs like BDL and BrahMos Aerospace.
Key Details
- Five Positive Indigenisation Lists covering over 5,500 items have been notified to date.
- India's defence exports reached a record figure of over ₹38,000 crore in FY 2025-26, supplying more than 80 countries — roughly a threefold increase over five years.
- The government's stated target is ₹50,000 crore in annual defence exports by 2029, alongside an overall defence production target of ₹3 lakh crore.
- Under the Defence Acquisition Procedure (DAP) 2020, capital acquisitions are categorised (e.g., Buy Indian-IDDM, Buy and Make Indian, Buy Global-Manufacture in India) and require Acceptance of Necessity from the Defence Acquisition Council (DAC) before proceeding to contract, with high-value cases needing Cabinet Committee on Security (CCS) clearance — the same institutional chain, in reverse, that governs India's arms exports via government-to-government or company-to-company contracts.
The BrahMos and Astra contracts with Indonesia are presented by the government as evidence of this export strategy delivering results, moving India's defence industry from a Positive Indigenisation List-driven import-substitution phase toward becoming a competitive exporter of frontline missile systems.
- Combined value of the BrahMos and Astra missile agreements with Indonesia: over $600 million.
- India joined the MTCR in June 2016, enabling BrahMos exports.
- First BrahMos export customer: Philippines (2022 deal, three batteries, $375 million).
- Astra Mk-1 range: approximately 80-110 km; speed: Mach 4+; cleared for full production in 2024.
- Indonesia's Su-30 fleet size referenced in the deal: 16 aircraft.
- India's FY 2025-26 defence exports: over ₹38,000 crore, to 80+ countries.
- Government's defence export target: ₹50,000 crore annually by 2029.