India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26. The milestone represents a 15.6% growth over the previous fiscal year’s output of Rs 1.54 lakh crore and a staggering 110% increase since FY 2020-21 when the figure was Rs 84,643 crore. The indigenous defence production has increased almost four times from Rs 43,746 crore in FY 2013-14.
Defence Public Sector Undertakings and other PSUs accounted for approximately 76% of total production, while the private sector contributed 24%, which is a rise from 22% in FY 2024-25. The share of the private sector is at its all-time high of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem. The growth in defence production over the years has tremendously contributed in achieving the record defence exports of Rs 38,424 crore in FY 2025-26. The achievement reflects the growing momentum of the Government’s push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Shri Narendra Modi.
In a post on X, Raksha Mantri Shri Rajnath Singh credited the inspiring leadership of Prime Minister Shri Narendra Modi for taking India’s defence production to newer heights, and lauded the collective efforts of the Department of Defence Production and public & private sectors for achieving the landmark. He highlighted that the upward trajectory is a clear indicator of the country’s expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead, he added.
