India's defence production reached an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26, marking a significant milestone in the country's push towards self-reliance in defence manufacturing.
The record output represents a 15.6% increase compared to the previous fiscal year, when defence production stood at Rs 1.54 lakh crore.
It also reflects a remarkable 110% growth from FY 2020-21, when production was valued at Rs 84,643 crore. Compared to FY 2013-14, indigenous defence production has increased nearly fourfold from Rs 43,746 crore, said the Ministry of Defence.
Public and Private Sector Contribution
Defence Public Sector Undertakings (DPSUs) and other public sector units contributed around 76% of the total defence production, while the private sector accounted for 24%.
The private sector's contribution reached an all-time high of approximately Rs 42,000 crore in FY 2025-26, rising from 22% in the previous fiscal year.
The growing participation of private companies has strengthened India's defence industrial ecosystem and played a key role in expanding manufacturing capabilities across the sector.
Boost to Defence Exports
The rise in domestic defence production has also supported India's export ambitions. Defence exports reached a record Rs 38,424 crore in FY 2025-26, reflecting the impact of government initiatives aimed at enhancing indigenous manufacturing and reducing dependence on imports.
In a post on X, Defence Minister Rajnath Singh credited Prime Minister Narendra Modi's leadership for driving India's defence production growth. He also praised the efforts of the Department of Defence Production, public sector organisations and private industry for achieving the milestone.
Singh said the rising production figures highlight the expansion of India's defence industrial base. He added that continued policy support, new initiatives, increased private sector participation and stronger export capabilities will further accelerate growth in the defence sector in the coming years.
Under the inspiring leadership of PM Shri @narendramodi, India's defence production is reaching new heights every year. I am delighted to inform everyone that India's annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY)…
— Rajnath Singh (@rajnathsingh) June 17, 2026
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
