New Delhi: India’s defence production has reached a historic milestone, touching an all-time high of ₹1.78 lakh crore during Financial Year (FY) 2025-26.
The achievement marks a 15.6% increase over the previous fiscal year’s output of ₹1.54 lakh crore and reflects the country’s growing strength in indigenous manufacturing capabilities.
The latest figures show that defence production has more than doubled since FY 2020-21, when the output stood at ₹84,643 crore, registering an impressive growth of 110%.
Compared to FY 2013-14, indigenous defence production has increased nearly fourfold from ₹43,746 crore, highlighting the steady expansion of India’s domestic defence manufacturing ecosystem.
According to official data, Defence Public Sector Undertakings (DPSUs) and other Public Sector Undertakings (PSUs) contributed approximately 76% of the total defence production, while the private sector accounted for 24%.
The private sector’s contribution has risen from 22% in FY 2024-25 to its highest-ever share in FY 2025-26, amounting to nearly ₹42,000 crore.
The growing participation of private industry in defence production reflects its increasingly important role within India’s defence ecosystem.
The sector’s expansion has also played a significant role in enabling the country to achieve record defence exports worth ₹38,424 crore during FY 2025-26.
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The record-breaking defence production figures underline the success of the Government’s efforts to strengthen domestic manufacturing under the Aatmanirbhar Bharat initiative led by Prime Minister Narendra Modi.
The initiative has focused on promoting self-reliance in defence manufacturing, reducing import dependence, and building a robust indigenous industrial base.
In a post on X, Raksha Mantri Rajnath Singh attributed the achievement to the leadership of Prime Minister Narendra Modi and acknowledged the contributions of the Department of Defence Production, public sector enterprises, and private industry stakeholders.
He stated that the remarkable growth demonstrates the country’s expanding defence industrial base and reflects the success of ongoing policy reforms.
Rajnath Singh also highlighted that sustained government support, new initiatives, increased private sector participation, and rising export capabilities are expected to further accelerate defence production in the coming years.
The continued growth of defence production is being viewed as a key indicator of India’s progress toward achieving self-reliance in strategic manufacturing while strengthening its position as an emerging global defence manufacturing and export hub.
