Aero India 2025: India Targets Rs 1.60 Lakh-Crore Domestic Defence Production By FY26, Says Rajnath Singh
India seeks to reduce import dependency and establish itself as a global defence hub, Defence Minister Rajnath Singh said.

India is ramping up its defence production, aiming for Rs 1.60 lakh crore in domestic manufacturing by fiscal 2026, Defence Minister Rajnath Singh announced during the curtain-raiser for the 15th Aero India 2025 on Sunday.
Driven by government reforms, technological advancements, and private sector participation, India seeks to reduce import dependency and establish itself as a global defence hub, Singh said.
In FY24, domestic defence production reached Rs 1.27 lakh crore, with exports exceeding Rs 21,000 crore. Now, with an aggressive push for indigenous manufacturing, the country aims to bridge the gap between production and demand. The government has set a defence export target of Rs 30,000 crore for FY26.
Aero India 2025
The 15th Aero India 2025 begins on Feb. 12, featuring participation from 80 countries and 26 defence ministers. The event will host a CEOs Conclave and a Defence Ministers’ Conclave, focusing on new-age warfare, sustainable defence manufacturing, and public-private partnerships.
Over 100 companies, including more than 50 international firms, will exhibit advanced defence technologies. India is progressing with its Advanced Medium Combat Aircraft (AMCA) program to develop a fifth-generation fighter, while ensuring the Indian Air Force’s operational needs are met in the interim.
Aero India 2025 will also showcase two fifth-generation fighter aircraft—the Sukhoi Su-57 from Russia and the F-35 from the United States—along with cutting-edge missile systems, aerospace technology, and AI-driven defence solutions.
Private Sector’s Expanding Role
Private sector participation in defence manufacturing has surged, with over 900 firms actively contributing. Government-backed initiatives, including the restructuring of the Ordnance Factory Board, are streamlining production and boosting efficiency, Singh noted.
In the age of wars, countries are looking at resilient supply chain for defence equipment and arrangements.
India’s defence sector is undergoing a transformative shift, positioning the country as a key player in global defence manufacturing and exports.