India has achieved an all-time high in its defence production, reaching ₹1.78 lakh crore in the financial year 2025-26. This remarkable figure represents a 15.6% increase over the ₹1.54 lakh crore recorded in the preceding year, FY 2024-25. The growth underscores India's accelerating push towards self-reliance in defence manufacturing.
Significant Growth Trajectory
The latest production figures are more than double the ₹84,643 crore achieved in 2020-21 and nearly four times the ₹43,746 crore reported in 2013-14. This sustained upward trend reflects robust expansion in both domestic manufacturing capabilities and defence exports.
Defence Minister Rajnath Singh commented on the achievement, stating, “The remarkable rise in India’s defence production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders. This upward trajectory is a clear indicator of the country’s expanding defence industrial base.”
Private Sector and Exports Bolster Production
While Defence Public Sector Undertakings (DPSUs) and other PSUs contributed approximately 76% of the total production, the private sector's share saw a notable increase. Private companies accounted for 24% of the total, up from 22% in FY 2024-25, contributing around ₹42,000 crore to the overall output.
Defence exports also reached a record high of ₹38,424 crore in FY 2025-26, further demonstrating India's growing footprint in the global defence market. These achievements are closely linked to the government's strategic initiatives aimed at fostering indigenous innovation and strengthening the defence ecosystem.
Policy Reforms Drive 'Aatmanirbhar Bharat'
The government's 'Aatmanirbhar Bharat' (Self-Reliant India) and 'Make in India' campaigns have been central to this growth. Policy reforms, including the Defence Acquisition Procedure 2020 and Defence Procurement Manual 2025, have streamlined processes, increased the mandate for indigenous content, and actively encouraged participation from the private sector and Micro, Small, and Medium Enterprises (MSMEs).
Investments in research and development have more than doubled, with increased involvement from industry, startups, and academic institutions. India now exports defence equipment to over 80 countries, solidifying its position as a significant player in the global defence manufacturing landscape.